The Effect Of Review Score On ACoS

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Sean Smith is here and talking through the effect of review score on ACoS, the impact on PPC to organic ratios, category changes and Q4 strategies…

If you hit 3.5 or even 4.1 and you get bombed out of the market depending on categories
Pretty consistent over the last couple of years
ACoS goes up when Stars drop as the PPC Conversion rate goes down
Like a spiralling effect
Go from 4 to 3.5 – effectiveness of your review score is relative to the offers that are around you
Ideally 4.5 or better is preferred to work with clients

Remember the Fundamentals

When reviews drop from 4 to 3.5 and PPC conversion rate trails down and ACoS goes up and your into damage control
Path 1 – Pull back on ACoS
Path 2 – Keep pushing to get the 4 stars because of the effect of review score on ACoS
Work with the business to understand how long do we think this will take to get back up
Ride the storm of for 2 weeks and it’s like 1/24th of a year of the time the business has been running if it’s a year
Like to ride the storm and get the 4 back
It’s a fundamental and sometimes as you scale it’s hard to cover the fundamentals

Most of these problems come down to Quality Control, factory, product, etc
Impact is low reviews
Not doing inspections can be a problems and crazy as the relationship with the factory is great but quality of the shipment can be deteriorating
Use a QC team and manage the factory through a quality protocol to ensure QA is high

The ratio on a product launch
Daniel at Quiver
A graph where there’s a graph that spikes up and trails down over time
You have to measure as it measures the quality of the organic performance of your product
Generally at launch 70-90 or event 100% exact match protocol might be the driver to build visibility when you’re at the bottom of the Amazon jungle
You then taper off over time as you build ranking
You then reduce your bids and reduce ACoS over time
A lot of people have different philosophies over time
More competitive markets might have to keep it higher and manage it overtime
You MUST get a baseline and manage it
It should not be 100% over time and should be coming down

Some categories have so much sales velocity that you cannot achieve it on PPC alone
Imagine 250 units a day, that’s a lot to convert through searches into clickthrough rate and down into the purchase funnel and the traffic you need to sustain that is huge – a very competitive market
If you’ve not got the clickthrough rates that lead into the conversions and you need a hefty number of sales on that keyword – it’s a struggle people go on and chase the dragon to maintain page one
But it’s all dependent on your conversion from click to sales ratio
If your price is wrong or your image is wrong on your review score if low it really impacts your clicks to conversions
Ability to rank for a keyword is really relative to the competitiveness of the offers under that SERP
If highly competitive you may get very little rank
You may get to a certain rank but if the offers under you are really competitive you drop but can you spend enough to stay there
Can’t turn Water to Wine – If the product is not good enough then the market will tell you and no amount of PPC will save that
A prime example of the effect of review score on ACoS with a poor product you will tank

Amazon moved the product to a different sub-category which could have a big effect of review scores on ACoS and Sales
And why is the product not showing in different categories..it changed
Using Seller Legend the API updates twice a day and shows what has changed
Amazon moved the product from a relevant-category to a ‘super-relevant’ category and it went from position 2 to more like 299
Quite lucky we could move it back into the nodes and business as usual 20 hours later
Impact on category moves is key