The core purpose of advertising for ecommerce businesses is to rapidly drive sales velocity and conversion rate. This velocity and high conversion signals to Amazon that your product is resonating with customers. As a result, Amazon will reward your listings by ranking them higher in organic search. This increased organic visibility leads to exponentially more impressions and sales. So advertising drives the flywheel effect: More Targeted Traffic → More Sales → Higher Conversion Rates → Increased Organic Rank → More Organic Traffic → More Sales This self-reinforcing cycle enables sustainable, scalable growth. If your advertising isn't leading to a spike in sales and conversions, there are two potential issues: 1. You may not be driving enough volume of targeted traffic to outpace competitors. The solution is more scale through aggressive paid advertising. 2. Your conversion rate may be too low. This could be from a subpar listing, bad photos, unclear copy, or unoptimized backend. Optimizing your listing and customer experience is crucial. The key is achieving velocity AND conversion together. Massive volumes of traffic mean nothing without sales. But great conversions without traffic volume will never overtake competitors. Testing and iterating to improve both is how you engineer a profitable flywheel. When traffic volume and conversion rate are optimized, organic rank and profit are the natural result. Does this help explain the relationship between advertising, sales velocity, conversion rate, and organic rank? Let me know if you need any clarification or have additional questions!
@@ProfitablePineapple so you don't care if a kw generates a sale or two here and there, once in a while, right? Are you suggesting it has negative impact on organic rank (because of low sales velocity/CVR for that kw) and is therefore not worth the revenue? Or is it merely to conserve budget? Thanks!
@@bmeryhew Nope.... Your talking about 1-2 sales every 30 days which does not contribute to sales velocity. I didn't say it has a negative impact on rank, but you can use that time, energy, finances, etc.. to focus on the top keywords. It's to reallocate budget to the best selling search terms
Not at all. I wrote this whole thing myself. I'm reading off a teleprompter, which this was my first time doing it, so that is what you are probably noticing
Great video Travis 🙏🏽
Glad you enjoyed it!
But a high ACOS is killing my sales and I'm afraid I won't have anything left to buy more inventory.
The core purpose of advertising for ecommerce businesses is to rapidly drive sales velocity and conversion rate. This velocity and high conversion signals to Amazon that your product is resonating with customers.
As a result, Amazon will reward your listings by ranking them higher in organic search. This increased organic visibility leads to exponentially more impressions and sales.
So advertising drives the flywheel effect:
More Targeted Traffic → More Sales → Higher Conversion Rates → Increased Organic Rank → More Organic Traffic → More Sales
This self-reinforcing cycle enables sustainable, scalable growth.
If your advertising isn't leading to a spike in sales and conversions, there are two potential issues:
1. You may not be driving enough volume of targeted traffic to outpace competitors. The solution is more scale through aggressive paid advertising.
2. Your conversion rate may be too low. This could be from a subpar listing, bad photos, unclear copy, or unoptimized backend. Optimizing your listing and customer experience is crucial.
The key is achieving velocity AND conversion together. Massive volumes of traffic mean nothing without sales. But great conversions without traffic volume will never overtake competitors.
Testing and iterating to improve both is how you engineer a profitable flywheel. When traffic volume and conversion rate are optimized, organic rank and profit are the natural result.
Does this help explain the relationship between advertising, sales velocity, conversion rate, and organic rank? Let me know if you need any clarification or have additional questions!
and what if i have only 1 product Im currently selling? what use of the app you promote?
I recommend using Autron and make sure your ACOS target is at or above breakeven. Here's our affiliate link autron.io/?via=travis
Do you just pause your keywords that don't fall in your 80/20 rule?
Yes I do. Sounds crazy, but I go all in on what is working!
@@ProfitablePineapple so you don't care if a kw generates a sale or two here and there, once in a while, right? Are you suggesting it has negative impact on organic rank (because of low sales velocity/CVR for that kw) and is therefore not worth the revenue? Or is it merely to conserve budget? Thanks!
@@bmeryhew Nope.... Your talking about 1-2 sales every 30 days which does not contribute to sales velocity.
I didn't say it has a negative impact on rank, but you can use that time, energy, finances, etc.. to focus on the top keywords.
It's to reallocate budget to the best selling search terms
@@ProfitablePineapple awesome, thanks for clarifying!
i love your content but some part of conversation is so obvious they are from chatgpt....
Not at all. I wrote this whole thing myself.
I'm reading off a teleprompter, which this was my first time doing it, so that is what you are probably noticing