I have sadly had to pause my Sponsored Ad Campaign today.
My Sponsored Product campaign did well for it’s first year with my ACOS was running between 4 to 6%. 3 months ago I started getting emails saying that I had run out of ad budget early in the day. My recommended suggested bids went from around 0 - 25p a year ago to .75p - £3.60! Seller Support’s only explanation was that competition had increased. I tinkered around with things and increased my bids to around 50p, which was the max I could afford as my profit margins are fairly low and Amazon already took the same amount of profit as I made per sale. The situation has continued to worsen, with ad spend going up and sales becoming very erratic and decreasing.
My ACOS for the past 7 days has gone to 45.56%, so I’m running at a big loss, paying Amazon for the “privilege” of advertising for very few sales. This has become a total rip off and shaken my faith / trust in Amazon.
I sell a unique quality Home & Kitchen product, which Amazon is denying their buyers the opportunity of even seeing. I will have to revert to organic sales only and focus on building my business on other platforms.
I’m still hoping this is a technical glitch and not just pure greed. What on earth can they be doing?
Does anyone know what’s going on ?