Throwaway account. New seller here.
Product: Auto accessory, niche with ~30k monthly searches for the core keyword. I’m using broad match on that keyword. Most sales come from broad match.
Situation:
I took over a product that’s been live for 7 months. Original price was $169, then gradually lowered to $98 (losing money). Competitors are around $139. My rating: 4.7 stars with ~300 reviews. Competitors have 600–1,000 reviews. I do have an Amazon’s Choice badge.
Last 30 days:
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Ad spend: $418
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Sales: ~$3,300
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ACoS: ~19%
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Conversion rate: ~13.6%
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Net result: -$140 (because price is too low to cover costs)
My plan: Gradually raise price to $139. But I’m stuck.
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If I raise and still get orders – what’s the next step?
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If I raise and orders stop – what do I do?
Looking for real advice from people who’ve fixed pricing issues without tanking rank.
Answers (3)
For $100+ products, being the cheapest can actually hurt you. Buyers may assume low quality. Competitors at $139 with 600+ reviews look safer than you at $98 with 300 reviews.
What to try:
You have too many campaigns for a ~$14/day budget. With CPC around $2.40, you’re getting very few clicks per campaign. No single campaign can learn.
Simplify:
Your ACoS looks fine (19%), but you’re losing money because your margin at $98 can’t absorb ad spend. The real metric to watch is TACOS (total ad spend ÷ total sales). Yours is ~12.7% – not bad. But your base margin is too thin.
Fix: