What I look at before spending more on Amazon ads

When a brand wants to grow on Amazon, increasing the advertising budget is an understandable place to start. It is a decision you can make quickly, and you can see the spend change almost immediately.

I'd want to look at what that extra spend is likely to do for the business before making the change. If the product is already selling profitably and stock is in place, more traffic might be useful. If either of those is uncertain, that needs to be part of the conversation.

Start with the product economics

I'd begin with the money left from an order after the product cost, marketplace fees and fulfilment costs, before advertising. Then I'd look at the advertising spend associated with those sales.

The exact calculation needs to match the account and the market. Returns, discounts and other costs can change the picture, so a broad account average would only be a starting point for me. I want to understand which products have room for more spend and which need a closer look.

That matters because a growing revenue number can hide quite different results across the catalogue. A decision that makes sense for one product may be difficult to justify for another.

Look at what the customer sees

Next I'd look at the listing as a customer. Can I understand the product from the main image? Is the size or quantity clear? Does the page answer the questions I'd have before buying it?

I'd also look at the search terms bringing people to that page. If the traffic is poorly matched to the product, adding more of it could mean paying for more visits without enough orders to support the spend.

This is where advertising and listing work belong in the same discussion. The ad gets someone to the page, and the page still has work to do.

Check what happens if it works

If a budget increase brings more orders, stock has to support them. I'd want to know what is available, what is on its way and how long another order would take to arrive.

There may still be a reason to accept a short stock window, but I'd want that to be a deliberate decision. Otherwise, the team can end up paying to build demand for a product it is about to run out of.

Agree what we'll learn

Once those pieces are understood, I'd favour a measured change with a clear review point. The useful question is how the additional spend affects the business, including the margin and stock position.

Sometimes I'd recommend increasing the budget. Sometimes I'd put the first effort into the listing, the targeting or the stock plan. The recommendation comes from how those pieces fit together.

Work through it

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