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How to Improve Amazon ROI as a Seller: 6 Strategies Explained

David Katz9/23/2024

Hard work pays off, but if you want to improve Amazon ROI (return on investment), working smarter might help you more. So, there’s no need to worry about all the optimization strategies - only a few will significantly move the needle.

Read on to discover what would make a difference and help your business grow faster without spreading yourself thin.

TL;DR - How to Improve Your Amazon ROI

Improving your Amazon ROI will get you closer to maximizing the value you get from every dollar spent. Some of the most effective strategies are the following:

  1. Use Amazon affiliate marketing
  2. Edit product listings for maximum visibility
  3. Add high-quality images and content
  4. Optimize your product pricing strategy
  5. Run Amazon advertising campaigns
  6. Manage reviews and customer feedback effectively

Below, we’ll get into the nitty-gritty of all these strategies. But first, a quick reminder: At Archer Affiliates, we have a network of 2,500+ vetted Amazon influencers and content creators who would happily promote your products.

Don’t know where to start with growing your ROI? Join our network and reap the benefits of affiliate marketing (more on that below!).

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Benefits of Maximizing ROI on Amazon

Maximizing ROI means getting the most profit from your spending. Whether you spend money on ads or time to promote and grow your listing organically, the benefits are unignorable:

1. More profit: You keep more money from your sales.

2. Better ad performance: Your ads bring in more sales for less cost.

3. Improved rankings: Organic (free) visibility increases as sales grow.

4. Wiser spending: You focus on what works, saving money on wasteful tactics.

5. Sustained growth: In the long term, you scale your business without breaking the bank.

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How to Calculate Your Amazon ROI Accurately

To calculate your Amazon return on investment, you must focus on two key metrics: your net profit and total investment.

You don’t need an Amazon ROI calculator since the formula is as simple as (Net Profit / Total Investment) x 100. But you will need to pay attention to some of the challenges of getting an accurate result:

  • Multiple costs: You can easily overlook fees like Amazon referral, fulfillment, or storage costs.
  • Ad spend leakage: Some will click on your ads but not buy. If you don’t track this correctly, it can skew your ROI.
  • Mix of organic & paid sales: Sometimes, it's hard to separate what sales came from organic traffic vs. paid ads.
  • Attribution windows: Amazon may attribute sales to ads over several days, which can confuse how much an ad directly contributed to a sale.

Assuming you carefully figure out all of the above, here’s an example of Amazon ROI calculation. If you sell $10,000 worth of products and have $1,500 in Amazon fees, $4,000 in product costs, and $1,000 in ad spend, you’ll do this math:

  • Net Profit = Total Sales Revenue - (Amazon Fees + Cost of Goods + Ad Spend) = 10,000 − (1,500 + 4,000 + 1,000) = 3,500
  • Total Investment = Ad Spend + Cost of Goods + Any Other Business Expenses (like storage, shipping) = 1,000 + 4,000 = 5,000
  • ROI = 3,500/5,000 x 100 = 70%

Interpretation: You make $0.70 in profit for every dollar you spend.

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Top Strategies to Improve Your Amazon ROI

Fine-tuning details that many sellers overlook can greatly impact your Amazon ROI. The best part? It’s not as complicated as you might think. Take a look at the following strategies.

1. Use Amazon Affiliate Marketing

Through affiliate marketing, you partner with content creators (affiliates) who promote your Amazon products on their websites, blogs, or social media platforms. They use unique referral links so you know where your sales are coming from, and they earn a commission for every sale.

This low-risk, high-reward strategy helps increase your visibility, sales, and ROI without ad spending. At Archer Affiliates, we use this performance-based model and have over 2,500 vetted affiliates you can partner with.

By joining us, you’ll reach customers before they even enter Amazon. And since you’ll be tracking sales with Amazon attribution links, you can also earn 10% back with the Amazon brand referral bonus, making it all the more profitable.

Our platform is easy to use, and our team of experts is here to support you every step of the way. Connect with our Amazon influencers and let them help you drive growth with no risk and maximum reward.

2. Improve Product Listings for Maximum Visibility

Product listing optimization aims to help customers find you and understand your offer more easily. Use relevant, high-ranking keywords in titles, bullet points, and descriptions. And make your listings clear, concise, and feature-rich to increase visibility on search results and category pages.

Equally important, use proper keywords to match the customer search intent and improve conversions. If you also fill in the backend search terms and pay attention to how you structure your content, you’ll increase your product’s chances of being discovered by organic search.

All these little things will lead to more sales and higher Amazon profitability.

3. Add High-Quality Images and Content

Your product images are often the first thing shoppers notice, so you want to invest in making them high-quality and professional. This means you should include multiple views and close-ups to highlight product features and benefits and even use A+ Content.

With A+ Content, you can customize your listing to make it pop with lots of lifestyle images, videos, detailed descriptions, and comparison tables.

You'll build trust, reduce returns, and increase conversion rates by using clear, high-resolution images and content that addresses common customer questions or pain points.

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4. Optimize Product Pricing Strategy

A competitive pricing strategy can significantly impact your Amazon sales and ROI. To develop it, regularly monitor competitor prices, consider using Amazon’s Automated Pricing tool, and set price limits that keep you competitive without compromising your margins.

You can also increase conversions if you create Amazon coupon codes to offer discounts or bundle deals during key sales periods. Ideally, you should balance profitability and competitiveness to attract more customers and maintain healthy margins.

5. Run Amazon Advertising Campaigns

Amazon Ads, such as Sponsored Products or Sponsored Brands, help increase visibility and drive traffic to your listings. But before spending, set a clear goal — like boosting sales or brand awareness — and choose your keywords carefully.

Opt for a combination of manual and automatic ads to capture long-tail and broader search terms. And once your ads are live, regularly analyze campaign performance, adjusting bids and keywords to focus on high-converting terms.

By optimizing your ad spend and continuously refining your strategy, you can increase sales while keeping ad costs efficient.

6. Manage Reviews and Customer Feedback Effectively

Reviews are your customers’ love (or hate) language. They play a critical role in building trust and boosting conversions. So, actively manage this feedback by responding to both positive and negative reviews professionally.

Use follow-up emails and product inserts to encourage satisfied customers to leave reviews. As for the negative feedback, address it with solutions to show prospective buyers you care about their experience.

All these will improve your product’s reputation and visibility in Amazon’s search algorithm, translating into more sales and, again, a higher ROI.

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Key Pitfalls Amazon Sellers Should Avoid to Improve ROI

We’ve given you general guidelines on how to improve your ROI, but just to keep you on the safe side, here are the biggest pitfalls you’ll want to avoid:

  • Overspending on broad keywords: Targeting broad keywords may seem like a good idea to capture more traffic, but it often leads to high costs with low conversions. Instead, narrow your focus to highly relevant, long-tail keywords, and you’ll get better results at a lower cost.
  • Failing to track organic vs. paid sales: It’s crucial to monitor where your sales come from to understand whether your ads drive true profitability. Not separating organic sales from paid ad sales can skew your ROI metrics.
  • Not testing and adjusting campaigns: Running the same ad campaigns without testing and tweaking can lead to wasted spend. To maximize your ROI, analyze your campaign data and adjust based on performance.
  • Ignoring competitor research: Failing to observe your competition can leave you outpriced or outperformed. Monitor competitor listings, prices, and keywords to get an edge and improve your campaign performance.
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Choose Archer Affiliates to Boost Your Amazon ROI

Our goal at Archer Affiliates is simple - to get your products in front of the right people (before they even open the Amazon app) without you having to do the bulk of the work or pay anything upfront.

Yes, we’ve sorted out the challenges of tracking and optimizing campaigns to see which affiliate sends you the most traffic or sales. Thanks to Amazon Attribution links, you can understand what’s driving your sales without any complicated setup or guesswork.

Let’s work together to drive you more traffic, increase your sales, and maximize your Amazon ROI — all without the costs of traditional advertising. Join us today and experience the power of performance-based marketing that delivers real, trackable results.

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Frequently Asked Questions (FAQs)

Here’s what our clients often ask about Amazon ROI and affiliate marketing:

Why is Affiliate Marketing Important for Amazon Sellers?

Affiliate marketing helps you reach customers you wouldn’t normally reach through traditional ads alone. By partnering with us, you tap into trusted sources with established audiences. Our affiliates promote your products organically, building credibility and driving higher-quality traffic.

What is a Good ROI for Amazon FBA?

According to industry standards, a healthy ROI should be 100%, especially if you’re a private-label seller or heavily focused on scaling. It means you’re effectively doubling your investment, which is what many successful Amazon sellers aim for.

While some sellers may be satisfied with 20-50% as a baseline for profitability, aiming for 100% or more ensures you're covering all costs (product, ads, fees) and still making a solid profit.

What is the Best Way to Respond to Negative Feedback on Amazon?

Stay professional, acknowledge the issue, and offer a solution. Remember to apologize for any inconvenience and ask the customer to contact you privately to resolve the problem. This shows you're proactive and value customer satisfaction.

What Tools Does Amazon Offer for Pricing Optimization?

Amazon offers several tools for pricing optimization, including:

  • Automate pricing: Adjusts prices based on rules you set to stay competitive.
  • Similar product pricing: Provides insights on how to price your items competitively by comparing your prices to other sellers’ listings.

Conclusion

There are plenty of strategies to maximize your Amazon results, and we’ve covered the most impactful ones, combining both organic and paid approaches.

Still, affiliate marketing is your best bet if you’re looking to prioritize one tactic. It drives valuable external traffic, increases visibility, and delivers results without heavy upfront costs.

Want to see real growth? Start by partnering with influencers who can put your products in front of the right audience. Connect with our vetted Amazon influencers today!

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