Ever wonder why sometimes a products appears to be very unprofitable or why some products seems to generate all of the sales?
If you selling products with a number of product variations, such as clothing (T-shirts, leggings) or home goods items (storage baskets, sheets), you may be confused on how Amazon is reporting data.
In Sponsored Products you must consider, 'Same SKU vs Other SKU' attribution.
What is Same SKU vs Other SKU attribution?
Amazon attributes sales and spend to the first sku that is clicked on, rather than the item that was purchased. Sales are reflected on the first SKU, but the orders are for a different product.
In Flywheel, you may sometimes notice total sales are lower than ad sales for a particular product, this is an example of Amazon is attributing the sales to the product whose ad was the first to be clicked on, but the orders were for a different product.
These products often show as being unprofitable due to high ad spend, however, they may be generating a high number of sales on other products. These products are sometimes to referred to as 'loss leaders'. They may be advertised at a lower price to generate traction.
Before adjusting your advertising strategy review the 'Advertised Product Report' in Amazon. Pausing these products could result in a decline in sales.
What is the Advertised Product Report?
The Advertised Product report, found in Amazon, will show the breakdown in the purchase behavior, i.e. what portion of the sales went to that SKU and what went to other SKUs. It will not show which SKU was actually purchased, but knowing the percentage of other SKU sales will indicate the overall impact this product has on your business.