The Effect Of Review Score On ACoS

[et_bloom_inline optin_id=optin_3]

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

Quality Assurance is Key

  • 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

PPC to Organic Ratio

  • 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

Effect of Review Score on ACoS and Sales

  • 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

Category Changes

  • 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

Best Sellers

  • Best seller badge and moving into categories and sub-categories is a key move
  • Switching categories can have a massive impact on sales

Q4 Changes to PPC

  • Be sure to plan for PPC Bid Strategies and plan your keywords
  • Make sure you capture your before and after on changes
  • Use bulk files or maybe use software to manage it