How to Audit a 7 Figure Amazon Brand Using Scale Insights - How to Improve TACOS & Profits

Auditing a 7-figure Amazon brand to optimize TACOS (Total Advertising Cost of Sale) and maximize profits requires a deep understanding of product performance, PPC strategy, and effective use of tools like Scale Insights. Here’s a structured approach to auditing your Amazon brand with actionable insights to improve conversion, reduce wasted ad spend, and grow profitably.

1. Analyze Account Performance and TACOS

Begin by reviewing your overall TACOS and account sales performance. Identify variations with high TACOS or underperformance, as these might require PPC adjustments or listing optimizations. Focusing on high TACOS items can help improve profitability without drastically impacting sales.

2. Optimize Spend on Top Variations

With multiple child variations, it’s essential to assess how ad spend is distributed. Identify high-spending variations that may not yield the best return and consider shifting focus to variations with higher conversion rates or lower TACOS. Here’s how:

• Focus on top performers: Look for high-converting products and channel more ad spend towards these items, as they are more likely to drive profitable growth.

• Test adjustments for low-performing items: Run A/B tests on different colors, sizes, or other variations to find optimal setups.

3. Reduce Wasted Ad Spend on Ineffective Search Terms

Use Scale Insights to identify search terms with high spend but no sales, which can lead to wasteful ad spend. Implement these strategies to cut down on waste:

• Negate irrelevant search terms: For terms with zero conversions, add them to your negative keyword list to prevent further ad spend.

• Expand on profitable terms: Identify search terms with low TACOS and high conversion rates, then increase spending on these for improved profitability.

4. Leverage Dayparting and Automation

Dayparting allows you to schedule ads based on peak shopping hours, which can help improve return on ad spend (ROAS) by targeting customers when they are most likely to convert. With Scale Insights:

• Set up dayparting rules: Analyze performance trends to run ads during high-converting time slots.

• Implement automated bidding: Use automated rules to adjust bids based on performance, increasing bids on high-performing terms and reducing them for underperformers.

5. Evaluate Organic vs. PPC Sales Performance

A balanced ratio of organic to PPC sales is ideal for sustainable growth. High dependency on PPC might inflate TACOS, while organic sales improve profitability. Using the Scale Insights P&L tab:

• Assess PPC vs. organic sales ratio: Aim for a lower PPC dependency, around 30-50%, which allows room for organic growth while controlling ad costs.

• Boost organic visibility: Enhance listing optimization, including keywords and A+ content, to improve organic rankings and reduce TACOS.

6. Monitor and Address High Refund Rates

Refunds can significantly impact profitability. Review customer returns and feedback to identify potential product issues or misaligned expectations, then take steps to address these:

• Optimize listing content: Ensure descriptions accurately represent the product quality, features, and benefits.

• Review product quality: If feedback frequently points to quality concerns, address these with suppliers or modify product listings to better manage expectations.

7. Enhance Conversion Rates through Listing Optimization

Product listing quality directly impacts conversions. To optimize, focus on the following areas:

• Highlight key product benefits: Use clear bullet points, enhanced images, and comparison charts to emphasize why your brand stands out.

• Optimize for relevant keywords: Ensure keywords align with high-converting terms, particularly those performing well in your PPC campaigns.

8. Use Scale Insights to Make Data-Driven Decisions

Scale Insights provides essential tools for ongoing management, such as automated bid adjustments, dayparting, and visibility into profitable keywords. By maintaining a data-driven approach, you can continually refine your PPC strategy, cut down on wasted ad spend, and focus on the areas that drive sustainable growth.

Conclusion

Auditing a high-revenue Amazon brand with Scale Insights can reveal actionable insights to reduce wasted ad spend, optimize conversion rates, and improve overall TACOS. By balancing PPC and organic sales, minimizing refund rates, and leveraging tools like dayparting and automation, you can create a streamlined, profitable strategy that sustains long-term growth.

For more hands-on guidance, consult with Kickstart PPC, an agency specializing in apparel brands and Amazon PPC management, to maximize your brand’s potential.

If you are looking for help with your Amazon PPC book a discovery call and free PPC Audit HERE