Flywheel: Teikametrics’ customer-facing ‘retail optimization’ platform, the product.
Max Ad Cost per Sale (MACS): An input within our bidding algorithm that dictates a user’s willingness spend or their bidding strategy. Set at the campaign level, this enables bid automation.
Bid automation: A schedule of daily, sometimes hourly, bid changes made to ad groups and keywords within your campaigns
Product Metrics Terms:
Cost of Goods Sold (COGS): Direct costs of producing the goods sold by a company, includes the cost of materials and labor directly used to create the good; excludes indirect expenses, such as distribution costs.Vary by seller and product, unique to each individual.
Benefits of COGS in Flywheel:
- Est. Gross Profit, Est. Gross Margins, Pre-Ad Gross Margins, MACS Calculator
TACoS: Total Advertising Cost of Sale. This is an indicator of how heavily a brand’s or seller’s business relies on paid advertising. It is calculated by dividing your total ad spend by your total sales. (Ad Spend) / (Total Sales) *100
Estimated Gross Profit*: This number tells you how much your gross profit was over a given time period. Appears on Home page (account level) and Product Metrics (product level).
Total Sales - (Amazon Selling Fees + FBA Fees + COGS + Ad Spend)
Est. gross margin*: Sales Revenue retained after factoring associated costs. Percentage (%) of total sales that become profits.
Selling Price - (COGS + Amazon Selling Fees + FBA Fees + Ad Spend)/Price *100
Pre-Ad Gross Margin: *Teika Term* Sales Revenue retained after factoring associated costs, excluding AD SPEND. Indicates how much money you can spend on advertising and still turn a profit on each sale. Helpful when setting MACS in the profit stage.
Selling Price - (COGS + Amazon Selling Fees + FBA Fees)/Price *100
Associated Campaigns: Number of active campaigns a particular SKU is being advertised in. Too few campaigns might mean you don’t have the ideal mirror campaign structure and too many might mean you are spreading your advertising budget too thin.
*COGS are required