Amazon Sellers Struggle With Rising Ad Costs Lower Profits
This paper delves into why some Amazon sellers experience diminishing returns on advertising spend within specific categories. By analyzing category characteristics such as traffic concentration and keyword purchase intent, using the Ring Light as a case study, it proposes a gradual growth strategy for mid-tier sellers and a multi-listing strategy for top-tier sellers. The study introduces the "Keyword Blocking Coefficient" as a key metric to help sellers develop more precise and efficient advertising strategies, ultimately maximizing profits. This aims to provide actionable insights for optimizing ad performance and improving ROI.
