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Your Amazon PPC TACoS Is Higher Than You Think
Description
Episode 37 dives into Total Advertising Cost of Sale (TACoS) on Amazon—a metric most sellers misunderstand. Lucas explains why a 'good' ACOS can hide a dangerous TACoS, using the example of a seller who spends $50,000 on ads to drive $200,000 in sales but sees organic revenue flatline. Luna shares data from an agency client whose TACoS jumped from 12% to 18% over six months despite stable ACOS. The hosts break down how to calculate true TACoS, why Amazon's organic algorithm penalizes ad dependence, and three actionable levers to lower TACoS without sacrificing volume. Specific strategies include adjusting bid multipliers for top-of-search placement, defending brand terms with exact-match campaigns, and using dayparting to avoid wasteful spend during low-conversion hours. No fluff—just a tactical framework to stop overpaying for sales you'd get anyway.