When it comes to using Brand Expand as a tool, understanding key metrics like ACoS (Advertising Cost of Sales) and Coupons is crucial to your pricing strategy.
ACoS (Discount):
ACoS stands for "Advertising Cost of Sales." It represents the percentage of revenue you are willing to spend on advertising to make a sale. It can also be viewed as the discount per unit sold.
Here's an example: Imagine you have a $100 product with a 80% ACoS. This means you are willing to spend $80 on advertising to sell one unit of your product.
A higher ACoS indicates a more aggressive advertising approach, while a lower ACoS signifies a more conservative one.
This ACoS (Discount) ratio helps you determine your pricing strategy, ensuring that it aligns with your goals and product margins.
A higher ACoS is often recommended for niche products (lower desirability) to encourage a strong launch performance (higher sell-through rate).
Coupons:
The "Coupon Amount" field when setting up a launch refers to the public discount offered on your product listing. If your coupon is a % off, please convert it to a dollar amount for this field.
Only include coupons that apply to a single unit. Volume discounts should not be included.
Having a coupon does not incentivize our buyer network since the product cost and coupon offset, we just need these separated so we know how much to charge you for your product cost.
If you do not want the buyers to clip your coupon please specify this in your launch notes and do not include it in the coupon amount field.
