Amazon PPC Campaign Calculator- Maximize Your ROI with the Paid Ads on Amazon

Download this PPC projection tracker shown in the video.

Script

Today I am going to show you a sales projection tracker which is actually a PPC sales projection tracker that you can utilize to maximize your Amazon ppc campaign.

So what is the purpose of this tracker? In the current scenario, if you are obviously selling in Amazon, you must be familiar with Amazon ads.

What most people do is we usually set an ad campaign with a particular budget like $20, $40 or $50 per day and let it run. So we just monitor the ACoS and it does not give us the clear picture.

For example, here I have taken a screenshot from one of the campaigns of a client.

You can see that the spending was $69.15 and the sales were $47.97 . Obviously they are losing money.

Even though here the last ad campaign $97 is spent and sales were $144.95.The ACoS is 67% which means the sales figure is not accurate.

This is not the amount you are getting and also if you have multiple SKU for a particular product it does not show you how much of per unit you have made and how much actually you earned.

This is not a sales volume. So, there is a dilemma of  whether you are profiting with your ad campaign or not.

Yes, you can go there inside manually and calculate the total earnings for this expenditure. But this tracker will help you to get out of this guesswork.

Let me show you how it works with a fictional product.

For example,

Before I begin, remember, this is a sales projection tracker form PPC and it  is specially useful for PPC campaign so that you can estimate how much you should expect to sell per day and what should be your ad campaign budget.

This does not include the natural or organic sales.

We assume that you are doing well with your organic sales. If you solely want to run ppc campaign this tracker will help.

Let’s see how does it work?

First row is about the target units you want to sell per day. Let’s say you want to you want to sell 10 unit per day, you will put 10 in next column and this is the amount you want to sell and that equals  total sales per month would be $300 i.e You want to sell 300 unit per month.

Next row is  Production cost per unit which includes your manufacturing cost with shipping.

Obviously when you source the product from China you have calculated your unit price and you want to put that figure here.

I just put a fictional figure $3 here. So your estimated procurement cost would be $900 a i.e the row indicates total cost for per month sales target .

Obviously you buy larger units but this your monthly cost for this target itself.

Row no. six,it is important which shows your earning per unit excluding FBA fees.This is the amount you will actually earn, this is not the price you are selling .

Let me show you what I mean by that.

For example,The selling price of the water bottle is $29.95 .But the seller is not earning all of it because you know Amazon will charge shipping fees and etc and probably they are getting $20-23.

We will use the FBA calculator. Lets put the ASIN of the product here and search.I will just select one of the designs and obviously its Amazon fulfilled.

If you sell it for $29.95, hit the calculate button and you can see your actual earning at the bottom.

So you will earn $22.41 after extracting Amazon fees. And this is the figure you are looking for .

For your particular case you want to check how much you will earn. If your selling price is $19 you will get $14.

For this particular product its  $22.

The next row actually shows how much you will earn from the no of units sold .This is nothing but total sales per month multiplied by your earning per unit.So your estimated earning from monthly sold units would be $6600.

An item to earn $22 production cost can not be $3.To make it realistic I just changed the number $3- $7 production cost .

Next column is ACoS (Advertising cost of sales) .I just put a decimal no at the beginning.

What it actually mean is whenever you set a campaign after running it for particular time (2-3 days) you will get an ACos. ACos  get updated after 24-72 hours because Amazon has to ship the product .

Once you run your ad campaign for 5-6 days for trial period you will get ACoS no.

If your ACoS is 67% you will actually put 0.67.Just divide  the no by 100 .Your job is just to monitor the ACoS no.

Now the fun parts begin.

In the next row you will see how much you need to spend behind ads per month.

Rows at the bottom show you how much  you need to spend to achieve  300 sales only from ads provided that your ACos IS 67%.

That means you have to spend $4422 to make 10  per day and 300 sales per month just from PPC campaigns .

The next Row indicates total expenditure per month which is $6,522.

Total cost per month sales target $2100 and the estimated money need to spend on ad $4422 is added for the total expected expenditure.

With this scenario we can see that if your ACoS is 67% your net profit would be $78 only.

Last column is about your ad budget  which is nothing but total expenditure divided by 30 and its $147.4 .That means your per day ad budget should be $147.4 .

Looking at these numbers you can clearly understand that even though you are spending $147.4 per day for ad campaign ,at the end earning is very less.

Now lets change our ACoS to 50%, total profit per month changes to $1200 with $110 expenditure for ad.

What is the key take away  from here is,this is a mathematical calculation. I’ll give it away at the end of the videos .

If you want to sell 20 units per day, just change the number in respected area and automatically other numbers will change. You just need to check your ACos.

After doing this calculation if my goal is to sell 20 unit per day, then i have to spend $220 on my ad campaign.

Whenever u set an ad campaign you will set daily budget as $220.

If you set $20 a day you might be losing opportunities.Amazon will not display it to anyone sales.If you set $50 your ad will be shown more frequently.

What I suggest is, proceed step by step.First step is ,run this campaign with any amount of budget $10-$20 for 4-5 days just to get your number.

If you see your ACoS is 40-55% then put that number on tracker and you will understand whether you will be making money or not.

You can set a higher budget and plug the number on the tracker.

Hope you will get benefit from this tracker.

If you have any queries do let me know in the comments below

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