Case Study: Reducing ACOS from 45% to 19% for a Beauty Brand on Amazon
How Amazon Consultancy Services Improved Profitability and Created a Foundation for Sustainable Growth
A growing beauty brand approached Amazon Consultancy Services after becoming increasingly concerned about the profitability of its Amazon advertising.
Whilst sales were being generated consistently, the highly competitive nature of the beauty category meant advertising costs had spiralled to unsustainable levels. With an Advertising Cost of Sales (ACOS) of 45%, a significant proportion of revenue was being consumed by advertising spend, limiting profitability and restricting future growth opportunities.
Over a three-month period, Amazon Consultancy Services implemented a data-led optimisation strategy that reduced ACOS from 45% to 19% whilst increasing monthly revenue from £14,000 to £15,500.
Client Testimonial
“Ian and the team at ACS quickly understood our products and our brand ethos. We could not afford to keep going on Amazon with our existing ad spend and return but this was reduced to a much more manageable level quickly and now we can focus on growth. Thank you.”
– Beauty Brand Founder
The Challenge
The beauty category is one of Amazon’s most competitive marketplaces, with high advertising costs and fierce competition for premium keywords.
Rising Advertising Costs
The client’s advertising campaigns were generating sales, but the cost of acquiring customers had become increasingly expensive. High cost-per-clicks (CPCs) and broad keyword targeting were significantly impacting profitability.
Difficulty Identifying High-Value Keywords
The account contained a large number of keywords and campaigns, making it difficult to identify which search terms were genuinely contributing to:
- Organic ranking growth
- Revenue generation
- Long-term profitability
As a result, advertising budget was being spread across a wide range of terms without a clear understanding of which were driving meaningful results.
Profitability Concerns
Whilst revenue remained stable, the client recognised that maintaining an ACOS of 45% would make it difficult to scale the business sustainably.
Our Approach
Amazon Consultancy Services began with a comprehensive audit of the account, focusing on both advertising performance and organic ranking data.
Full PPC & Keyword Audit
Our primary objective was to understand which keywords were actually contributing to:
- Product visibility
- Organic ranking improvements
- Sales generation
- Profitable growth
We analysed:
- Search term reports
- Campaign performance data
- Conversion rates
- CPC trends
- Competitor activity
- Organic keyword rankings
This allowed us to separate profitable opportunities from wasted spend.
Strategic Budget Reallocation
Following the audit, we restructured campaign budgets to prioritise the keywords and search terms that demonstrated the strongest combination of:
- Sales performance
- Conversion rate
- Organic ranking impact
- Long-term growth potential
Ongoing Campaign Optimisation
Over the following months, we continuously refined campaign performance through:
- Bid optimisation
- Search term management
- Budget allocation improvements
- Keyword prioritisation
- Performance monitoring
The goal was not simply to reduce advertising spend, but to improve advertising efficiency whilst maintaining growth momentum.
The Results
Within three months, the account achieved substantial improvements in advertising efficiency and profitability.
Revenue Growth
Monthly Amazon revenue increased from:
£14,000 per month → £15,500 per month
Representing an:
11% Increase in Revenue
ACOS Reduction
Advertising Cost of Sales improved from:
45% → 19%
Representing a:
58% Reduction in ACOS
This dramatic improvement significantly increased the profitability of every sale generated through Amazon advertising.
Revenue increased by 11%
ACOS reduced by 58%
Improved account profitability
Better understanding of high-performing keywords
Reduced wasted advertising spend
More efficient budget allocation
Stronger foundation for future growth
Improved return on advertising investment
Why the Strategy Worked
Many Amazon sellers focus exclusively on sales volume without understanding which keywords are genuinely contributing to profitable growth.
By taking a data-driven approach and identifying the search terms that were delivering both rankings and revenue, Amazon Consultancy Services was able to eliminate waste, improve advertising efficiency and create a more scalable growth strategy.
The result was a healthier Amazon business with stronger profitability and greater confidence in future investment decisions.
Why Choose Amazon Consultancy Services?
We Understand Amazon Brands
As active Amazon sellers ourselves, we understand the importance of protecting your listings, maintaining brand integrity, and creating a strong customer experience.
End-to-End Support
From trademark guidance through to Brand Registry enrolment and ongoing protection, we provide comprehensive support throughout the process.
No Long-Term Contracts
We believe in earning your business through results, not restrictive contracts.
Practical, Commercial Advice
We focus on practical solutions that help businesses protect revenue, improve conversion rates, and scale sustainably.
UK-Based Amazon Experts
We support brands selling across:
- Amazon UK
- Amazon Germany
- Amazon France
- Amazon Italy
- Amazon Spain
- Amazon Netherlands
- Amazon Sweden
- Amazon USA
Looking to Reduce Your Amazon Advertising Costs?
If your Amazon advertising is generating sales but not delivering acceptable profitability, we can help.
Our Amazon PPC management and account optimisation services are designed to:
- Reduce ACOS
- Improve TACOS
- Increase profitability
- Improve keyword performance
- Build sustainable growth strategies
Book Your Free Amazon Account Audit
We’ll identify:
- Wasted advertising spend
- Keyword opportunities
- PPC optimisation opportunities
- Listing improvements
- Growth opportunities
Contact Amazon Consultancy Services today to discover how we can help improve your Amazon performance.