$360K Account, 40% of Profit Going to Ads. Here's How We Fixed That.

$360K Account, 40% of Profit Going to Ads. Here's How We Fixed That.

This account didn't have a visibility problem. It didn't have a sales problem. It had a cost problem — and at this scale, a cost problem is the most expensive kind to ignore.

The account was generating around $180K per month in revenue. Multiple products across the portfolio carried the Amazon's Choice badge, which meant organic positioning was strong and the listings were converting. By most metrics, this was a successful account.

But 40% of the profit was being consumed by advertising spend. Not because the campaigns weren't working — they were — but because they hadn't been optimized for efficiency at scale. When an account grows quickly, the campaign structure often doesn't keep pace. Budgets that made sense at $50K/month become wasteful at $180K/month. Bids that were competitive a year ago may now be overpaying for traffic that converts at a lower rate.

We came in with a clear priority: reduce cost without disrupting the sales velocity that was sustaining those organic rankings. In an account this size, moving too aggressively on cost cuts can collapse the very performance you're trying to protect.

The graph shows the three phases clearly. The period before we took over: high ACoS, inconsistent sales. The transition period: restructuring underway, results not yet visible. Then the third phase — the first results of optimization — where ACoS begins its sustained decline and sales start climbing.

After two months of continuous work — launching new campaign structures, testing placements, tightening match types, and systematically eliminating non-converting spend — the account was generating an additional $3K–$4K per day in sales at an average ACoS of 20%.

Same products. Same listings. Same market. The only thing that changed was how the advertising was managed.