Learn the essential ad strategies, key marketing terms (ACOS, ROAS, CTR, CPC), and budget planning that every seller must know to avoid loss and scale profitably on India’s top e-commerce platforms.
If you are also thinking about selling your product on Amazon, Flipkart, or Meesho want to start an ecommerce business, or if you have already started and are now planning how to grow it.
With the help of sponsored ads, you should watch this blog until the end because if you don’t have the basic knowledge, you may face losses in the future.
In this Ecommerce blog, I will explain many things in detail, such as how much budget you should keep, what basic terms are, which campaigns are available, and what options are available. These important things should be known to you.
So that when you go to do them, you are well informed and you know which campaign is better for you.So that when you go to do them, you are well informed and you know which campaign is better for you.
First, we talk about the basic terms; the most important thing that you should know.
First of all, the term ‘advertising cost of sales’ is a part of Amazon, and it is very important for you to know what it means. The advertising cost of sales means how much money you have spent on advertising for the sales you have made.okay
Now there is a formula for this. I will give you an example. Whatever ad spend you have done, whatever expenses you incurred, we will divide that by the sales generated from it and then multiply by 100.
If you spent 1000 on ads and got 5000 in return, then this means your advertising cost’s sales will be 20%. This 20% is part of your margin in bringing that order; keep this in mind.
So if your margin is very low and your ACOS is very high, then you can go into loss, so you need to keep in mind that your ACOS should always be good.
The second term is ROAS, which is called return on ad spend, meaning if you invest 100 rupees and generate sales of 1000 rupees, it means your ROAS is very good.
That is, 10 and the average ROAS over the ecommerce marketplace should be above 8, so that your sales are excellent and you get profits from it.
This means that if you spend 1000 on ads, running sponsored ads on the marketplace, and you get sales of 10,000 or 9,000 or 8,000, then it means your ROAS is very good and you can scale this profitable busines
Now it’s the third term, CTR means click-through rate. It is a percentage of how many people saw the ads and how many clicked on it. For example, if 100 people saw the ads and 10 of them clicked on it and viewed your product.that means your CTR is 10%
And there is a term called CPC, which means cost per click. It refers to how much money you are paying to the marketplaces for each click. I will explain all these things to you in further detail.
This was a basic term that I found very important to share with you.And there is a term called CPC, which means cost per click.
It refers to how much money you are paying to the marketplaces for each click. I will explain all these things to you in further detail. This was a basic term that I found very important to share with you.
So I am sure you must have figured out what this term refers to. Now the next thing you need to understand is whether every seller should run ads.
It’s very important that the ad actually works for those whose product is very unique, and for others whose product listings are already the best.sales product
In that particular category, she completes it, meaning she has the courage to divide the sales in her direction by competing with her.
The quality she possesses, the images of the product, the titles of the product, and the photoshoot of that product will have a lot of quality.
A plus listing will also be of high quality. They should run ads on it; if you run ads on them, you might start getting excellent results.
The third thing is that if there are items whose prices are competitive and already established in the market, and you think you can make a good profit by pricing them similarly, then they should also definitely run ads. And number four, those who believe that reviews are starting to come in for their products should also run ads so that their sales can increase.
Now, how much budget should you keep for Amazon, Flipkart, and Meesho? If you are selling on Amazon, what should be the budget for campaigns?
If you are selling on Flipkart, what should be the budget? And if you are selling on Meesho, what should be the budget? In my opinion, if you start ads campaigns for Amazon and Flipkart, you should keep a minimum budget of 300 to 500 every single day, and you need to check how your campaigns are performing for almost 2 weeks over the next 15 days.
And you can run a campaign on Meesho from 200 rupees to 250 rupees by activating their catalogs, and you can also run sponsored ads and advertisements on it.
This is very important; you should know your budget. When orders start coming in, you will feel that your ACOS is decreasing and your ROAS is increasing, which means you are getting a good return on investment.
You can gradually increase your campaign budget so that your sales grow more. In the initial stage, you need to conduct testing and should keep a budget of 10,000 to 15,000.
Your primary target should be to get some orders, some views, and to receive at least 5 positive customer reviews on our product. We should aim to receive at least 20 to 30 orders initially, and alongside that, organic sales for some of our products should also start coming in.
You should also know that your products are receiving some orders on your catalog even without running ads.
So I want to give a very important suggestion here: when you run ad campaigns, many of your products get impressions, meaning your product is shown on the screens of many people.
Then some people click on it and place an order, but many people also purchase some other products from your catalog on which you haven’t run ads. Those orders are called organic orders.
That is, we did not run an ad campaign on it, its visibility had become so strong due to the ad campaign that people now preferred to purchase it organically without seeing ads, which would benefit you overall and your product and your catalog would only be visible when you run ads on it.
If your product is completely new and you do not know how to run an ad campaign, and you are just relying on the recommendations that these marketplaces provide, it is possible that your money could go to waste.
You need to create and run these ad campaigns very carefully. The most important part of this blog is basically which options are available to us on Amazon, Flipkart, and Meesho.
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