For Amazon sellers, advertising fees account for a large proportion of expenditures, and it is very important to make statistics on advertising expenses and advertising input-output ratio. Accurate data is convenient for sellers to evaluate the effectiveness of each advertising strategy, reuse effective advertising actions, reduce ineffective advertising, and provide a reference for the formulation and adjustment of the overall operation strategy.
As a boss, you also need to know the overall expenditure of the store. After all, the expenditure of the store is directly related to profits and whether the company can grow and develop. However, advertising costs, as non-order costs, are often overlooked in the process of accounting, resulting in inaccurate advertising costs.
For example, have you noticed: "The total amount of advertising fees shown on Amazon's monthly report is inconsistent with the detailed summary of back-end advertising fees?"
Have you considered: "Does advertising costs based on the brand dimension need to be allocated to each product? How?"
You may say that the cost is not much different, but in the current cross-border environment trend, refined operation is the only way for sellers, and a difference in numbers may lead to deviations in your decision-making.
What is the Amazon Advertising Fee Variance?
Advertising fee discrepancy is the difference between the actual spend in the Amazon Advertising report and the actual deduction in the monthly Transaction report.
1) Why there is such a difference
This is mainly due to the fact that Amazon's advertising fee settlement mechanism is not instant settlement . The credit limit of Amazon sellers will go through the growth process from $50 to $150, $200, $350, and the highest is $500. If the seller does not exceed the $500 credit limit, the fee will only be charged once a month on the 3rd, which can be said to be a delayed deduction settlement.
The Advertised Product Report shows the real-time advertising costs, which will be different from the advertising costs that are billed on a regular basis.
2) The general statistical method of Amazon's finance
General finance will analyze the performance of each product and each person based on the advertising costs in the Transaction report, ignoring the real-time costs of each advertising. In the long run, there will be inaccurate profits, and the advertising costs of some SKUs will be settled, but the advertising performance of this SKU has been completed last month. This not only affects the performance of employees, but also affects the operation of the company.
Therefore, it is very important to pay attention to the difference in advertising fees between different reports, the difference between real-time spending and actual deductions, and reasonably allocate the difference in advertising fees.
How to calculate and distribute advertising costs reasonably?
After clarifying the cost difference between the advertising report and the transaction report, you need to consider how to allocate the cost of this difference to each ASIN, and calculate the actual advertising cost and advertising effect of each product.
There are generally three ways to choose from advertising expenses. One is based on the monthly sales ratio of ASINs, the other is based on the proportion of sales data, and the third is based on the proportion of different ASIN advertising costs. However, which apportionment method to choose depends on the actual business situation and advertisement placement situation, and a specific analysis at a specific stage will be more appropriate.
In addition to the allocation of advertising cost differences between the two reports, when aggregating overall advertising costs, sellers should also consider how to aggregate SP advertising costs and SB advertising costs in a unified dimension.
However, the advertising costs of SB advertising and SBV are generally placed in the dimension of brand or store. An advertising group may contain multiple products. The report of SB advertising does not match the specific ASIN, and it needs to allocate costs independently.
For sellers with hundreds or thousands of advertising campaigns, it often takes a lot of time to manually allocate these advertising costs, and it cannot meet the needs of the boss to understand the overall expenditure and profit of the store in a short time. It is easier to find advertising campaigns that are burning in the air, and stop losses in time.
A more efficient ad cost sharing solution
If you want to get more timely and accurate advertising costs, you can manage it through the leading star ERP.
1) Automatically integrate and aggregate the differences in advertising costs
In the processing of advertising expenses, Linkstar ERP automatically integrates and analyzes the data of the advertising report, and supports the comparison between the data of the advertising report and the data of the transaction report, and sorts out the difference between the actual deduction amount of Amazon and the amount of the advertising report, and Differentiate it and allocate it to each ASIN according to the sales or the proportion of sales.
2) Automatically allocate SB/SBV advertising costs to ASINs
In addition to the above differential cost allocation, Leaderstar ERP also allocates advertising fees for SB and SBV. The data parsed from the original table cannot be directly matched to each ASIN. Leaderstar ERP supports sales or sales by sales. Than automatically apportion SB and SBV advertising fees.
On the profit report, the seller can clearly see the various advertising expenditures corresponding to each ASIN, and support matching to the corresponding Listing person in charge, so that the corresponding personnel can know the cost and effect of advertising in a timely manner.
It is also worth mentioning that in the way of apportionment of advertising and other expenses, the seller can choose the appropriate way of apportionment according to actual needs. For example, it is more flexible to designate a certain SB advertising campaign to be apportioned according to the total sales of the designated ASIN.
Leadstar ERP helps sellers realize profit and advertising spending through the above advertising cost allocation logic, which is consistent whether it is calculated by ASIN dimension or by store dimension. This is conducive to ensuring the accuracy of profits, so as to conduct business operation analysis, personnel performance management, etc., improve the input-output ratio of advertising, and carry out refined operation and management of business.