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Seller_kPcWuGUzXanoE

Sponsored Products ROAS Dropping. Anyone Else Experiencing This?

Hey fellow sellers,

I’ve got a product that’s been performing really well for the past year. Consistent sales and a ROAS (Return on Ad Spend) of 3 or higher. But over the past month, I have noticed the ROAS dropping steadily, and now it’s sitting below 2. 😟

I haven’t changed anything major in the campaign setup, and the listing is still optimized. I’m starting to get a bit concerned. It feels like something shifted, but I can’t quite put my finger on it. Is anyone else seeing similar changes in their Sponsored Products performance recently? Could this be a seasonal dip, increased competition, or maybe an algorithm tweak?

Also, just wondering, do you all also consider a ROAS of 3+ the baseline for a “healthy” campaign? That’s what I’ve been using as my standard, but curious how others gauge success.

Would love to hear your thoughts and experiences!

Thanks in advance 🙏

52 views
6 replies
Grow Your Business
Tags:Sponsored Products
20
Reply
user profile
Seller_kPcWuGUzXanoE

Sponsored Products ROAS Dropping. Anyone Else Experiencing This?

Hey fellow sellers,

I’ve got a product that’s been performing really well for the past year. Consistent sales and a ROAS (Return on Ad Spend) of 3 or higher. But over the past month, I have noticed the ROAS dropping steadily, and now it’s sitting below 2. 😟

I haven’t changed anything major in the campaign setup, and the listing is still optimized. I’m starting to get a bit concerned. It feels like something shifted, but I can’t quite put my finger on it. Is anyone else seeing similar changes in their Sponsored Products performance recently? Could this be a seasonal dip, increased competition, or maybe an algorithm tweak?

Also, just wondering, do you all also consider a ROAS of 3+ the baseline for a “healthy” campaign? That’s what I’ve been using as my standard, but curious how others gauge success.

Would love to hear your thoughts and experiences!

Thanks in advance 🙏

Grow Your Business
Tags:Sponsored Products
20
52 views
6 replies
Reply
6 replies
user profile
Seller_HSvuKgkMn6xEz
In reply to: Seller_kPcWuGUzXanoE's post

,As you know, HAQM is the biggest platform, and thousands of new sellers are coming daily. Raos is not permanent for any product. It fluctuates based on the competitors' campaigns and listing data. I would advise you to focus on some outside resources besides HAQM PPC. Maybe you heard about Organic SEO methods. I am selling in Home & Kitchen, and my PPC is not that profitable, but outside marketing is bringing me good sales. You can try 360 marketing by HAQM Ranking Expert. Also increase your CPC based on current competitor data.

10
user profile
Seller_i6S8knzW6zU6Z
In reply to: Seller_kPcWuGUzXanoE's post

Hi @Seller_kPcWuGUzXanoE,

Thank you for starting this conversation. That’s a topic many of us think about, and these discussions help everyone.

To better understand your situation, I looked up your store name from your forum profile. Am I right that you’re referring to your Smart Cutting Board and Knife Set? As a parent, I really appreciate what you’ve created. After all, who doesn’t want healthy food and safe, hygienic meal prep for their family?

There are two perspectives I’d like to add to this conversation:

1. "ROAS Lag" — Sometimes it’s just the math

You mentioned your ROAS has dropped recently, over the past month. ROAS is calculated as attributed sales divided by marketing cost. While the cost side of that equation is usually finalized quickly (about 24 hours after a click), the sales side takes longer to "settle." Depending on the campaign type, HAQM attributes sales for either 7 or 14 days after the original click.

So if you’re reviewing ROAS for the most recent week, it might look artificially low - because all the ad spend is showing, but not all the relevant sales have come in yet. Often, if you check those same numbers again in a week or two, the ROAS will have improved - sometimes by quite a bit.

2. The impact of competition

When I searched "Cutting Board and Knife Set," I noticed several other products that, at first glance, look very similar to yours, and some are listed at lower prices (examples: B0CZMBYG43, B0CP31FPGC, B0CGV23LFF). While I couldn’t see when those listings were created, increased competition likely plays a role.

Let’s break it down using the ROAS equation: ROAS = Attributed Sales / Ad Spend

Looking closer:

  • Attributed Sales = Clicks × Conversion Rate × Product Price
  • Ad Spend = Clicks × Cost Per Click

Which means:

  • ROAS = (Conversion Rate × Product Price) / CPC

So, when competition rises (as it eventually does for almost everyone), price pressure tends to increase. If you hold your price steady while new sellers lower theirs, your conversion rate might decline as more shoppers compare options. And when more sellers bid on similar keywords, click costs often rise as well. Together, this puts downward pressure on ROAS - even without major changes on your side.

I know this kind of "back-of-the-envelope" math doesn’t capture the heart and soul we put into building unique products - but I wanted to share this perspective so you have time to plan your next moves. You’ve already proven you can launch successful products, so if the category shifts, you’re more than capable of finding your next hit.

Hopefully this is just a temporary phase and your ROAS bounces back soon. Either way, these headwinds are something all of us face sooner or later - and it’s always wise to keep an eye on possibilities for growing your portfolio.

Wishing you continued success,

Michael

20
user profile
Seller_rI7BZIczK8iAC
In reply to: Seller_kPcWuGUzXanoE's post

I do a regular daily small amount of PPC and aim to get a ROAS of at least 5. If the sales are slow in general, I stop the ads, because these days the clicks come from frustrated competitors (they don't know yet that this is very risky and that this could make their account suspended for "abusive" behaviour.) It depends on your audience. My ads are the most successfull in the morning.

20
user profile
Danny_HAQM
In reply to: Seller_kPcWuGUzXanoE's post

Hello @Seller_kPcWuGUzXanoE- and thank you for posing this to the community here on the forums, and I'm glad to see some positive discussion in the thread!

In case it proves useful, you may find value in reviewing this piece of content from our Advertising team deep diving what goes into the ROAS metric and how to benchmark success. It links out to a couple case studies where companies increased their ROAS.

I'll also give a heads up that our Advertising team will be hosting an Ask HAQM event on 6/12 over on this thread, if you'd like to ask any questions to them directly!

Thanks again for posting,

-Danny

10
Follow this discussion to be notified of new activity
user profile
Seller_kPcWuGUzXanoE

Sponsored Products ROAS Dropping. Anyone Else Experiencing This?

Hey fellow sellers,

I’ve got a product that’s been performing really well for the past year. Consistent sales and a ROAS (Return on Ad Spend) of 3 or higher. But over the past month, I have noticed the ROAS dropping steadily, and now it’s sitting below 2. 😟

I haven’t changed anything major in the campaign setup, and the listing is still optimized. I’m starting to get a bit concerned. It feels like something shifted, but I can’t quite put my finger on it. Is anyone else seeing similar changes in their Sponsored Products performance recently? Could this be a seasonal dip, increased competition, or maybe an algorithm tweak?

Also, just wondering, do you all also consider a ROAS of 3+ the baseline for a “healthy” campaign? That’s what I’ve been using as my standard, but curious how others gauge success.

Would love to hear your thoughts and experiences!

Thanks in advance 🙏

52 views
6 replies
Grow Your Business
Tags:Sponsored Products
20
Reply
user profile
Seller_kPcWuGUzXanoE

Sponsored Products ROAS Dropping. Anyone Else Experiencing This?

Hey fellow sellers,

I’ve got a product that’s been performing really well for the past year. Consistent sales and a ROAS (Return on Ad Spend) of 3 or higher. But over the past month, I have noticed the ROAS dropping steadily, and now it’s sitting below 2. 😟

I haven’t changed anything major in the campaign setup, and the listing is still optimized. I’m starting to get a bit concerned. It feels like something shifted, but I can’t quite put my finger on it. Is anyone else seeing similar changes in their Sponsored Products performance recently? Could this be a seasonal dip, increased competition, or maybe an algorithm tweak?

Also, just wondering, do you all also consider a ROAS of 3+ the baseline for a “healthy” campaign? That’s what I’ve been using as my standard, but curious how others gauge success.

Would love to hear your thoughts and experiences!

Thanks in advance 🙏

Grow Your Business
Tags:Sponsored Products
20
52 views
6 replies
Reply
user profile

Sponsored Products ROAS Dropping. Anyone Else Experiencing This?

by Seller_kPcWuGUzXanoE

Hey fellow sellers,

I’ve got a product that’s been performing really well for the past year. Consistent sales and a ROAS (Return on Ad Spend) of 3 or higher. But over the past month, I have noticed the ROAS dropping steadily, and now it’s sitting below 2. 😟

I haven’t changed anything major in the campaign setup, and the listing is still optimized. I’m starting to get a bit concerned. It feels like something shifted, but I can’t quite put my finger on it. Is anyone else seeing similar changes in their Sponsored Products performance recently? Could this be a seasonal dip, increased competition, or maybe an algorithm tweak?

Also, just wondering, do you all also consider a ROAS of 3+ the baseline for a “healthy” campaign? That’s what I’ve been using as my standard, but curious how others gauge success.

Would love to hear your thoughts and experiences!

Thanks in advance 🙏

Grow Your Business
Tags:Sponsored Products
20
52 views
6 replies
Reply
6 replies
6 replies
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user profile
Seller_HSvuKgkMn6xEz
In reply to: Seller_kPcWuGUzXanoE's post

,As you know, HAQM is the biggest platform, and thousands of new sellers are coming daily. Raos is not permanent for any product. It fluctuates based on the competitors' campaigns and listing data. I would advise you to focus on some outside resources besides HAQM PPC. Maybe you heard about Organic SEO methods. I am selling in Home & Kitchen, and my PPC is not that profitable, but outside marketing is bringing me good sales. You can try 360 marketing by HAQM Ranking Expert. Also increase your CPC based on current competitor data.

10
user profile
Seller_i6S8knzW6zU6Z
In reply to: Seller_kPcWuGUzXanoE's post

Hi @Seller_kPcWuGUzXanoE,

Thank you for starting this conversation. That’s a topic many of us think about, and these discussions help everyone.

To better understand your situation, I looked up your store name from your forum profile. Am I right that you’re referring to your Smart Cutting Board and Knife Set? As a parent, I really appreciate what you’ve created. After all, who doesn’t want healthy food and safe, hygienic meal prep for their family?

There are two perspectives I’d like to add to this conversation:

1. "ROAS Lag" — Sometimes it’s just the math

You mentioned your ROAS has dropped recently, over the past month. ROAS is calculated as attributed sales divided by marketing cost. While the cost side of that equation is usually finalized quickly (about 24 hours after a click), the sales side takes longer to "settle." Depending on the campaign type, HAQM attributes sales for either 7 or 14 days after the original click.

So if you’re reviewing ROAS for the most recent week, it might look artificially low - because all the ad spend is showing, but not all the relevant sales have come in yet. Often, if you check those same numbers again in a week or two, the ROAS will have improved - sometimes by quite a bit.

2. The impact of competition

When I searched "Cutting Board and Knife Set," I noticed several other products that, at first glance, look very similar to yours, and some are listed at lower prices (examples: B0CZMBYG43, B0CP31FPGC, B0CGV23LFF). While I couldn’t see when those listings were created, increased competition likely plays a role.

Let’s break it down using the ROAS equation: ROAS = Attributed Sales / Ad Spend

Looking closer:

  • Attributed Sales = Clicks × Conversion Rate × Product Price
  • Ad Spend = Clicks × Cost Per Click

Which means:

  • ROAS = (Conversion Rate × Product Price) / CPC

So, when competition rises (as it eventually does for almost everyone), price pressure tends to increase. If you hold your price steady while new sellers lower theirs, your conversion rate might decline as more shoppers compare options. And when more sellers bid on similar keywords, click costs often rise as well. Together, this puts downward pressure on ROAS - even without major changes on your side.

I know this kind of "back-of-the-envelope" math doesn’t capture the heart and soul we put into building unique products - but I wanted to share this perspective so you have time to plan your next moves. You’ve already proven you can launch successful products, so if the category shifts, you’re more than capable of finding your next hit.

Hopefully this is just a temporary phase and your ROAS bounces back soon. Either way, these headwinds are something all of us face sooner or later - and it’s always wise to keep an eye on possibilities for growing your portfolio.

Wishing you continued success,

Michael

20
user profile
Seller_rI7BZIczK8iAC
In reply to: Seller_kPcWuGUzXanoE's post

I do a regular daily small amount of PPC and aim to get a ROAS of at least 5. If the sales are slow in general, I stop the ads, because these days the clicks come from frustrated competitors (they don't know yet that this is very risky and that this could make their account suspended for "abusive" behaviour.) It depends on your audience. My ads are the most successfull in the morning.

20
user profile
Danny_HAQM
In reply to: Seller_kPcWuGUzXanoE's post

Hello @Seller_kPcWuGUzXanoE- and thank you for posing this to the community here on the forums, and I'm glad to see some positive discussion in the thread!

In case it proves useful, you may find value in reviewing this piece of content from our Advertising team deep diving what goes into the ROAS metric and how to benchmark success. It links out to a couple case studies where companies increased their ROAS.

I'll also give a heads up that our Advertising team will be hosting an Ask HAQM event on 6/12 over on this thread, if you'd like to ask any questions to them directly!

Thanks again for posting,

-Danny

10
Follow this discussion to be notified of new activity
user profile
Seller_HSvuKgkMn6xEz
In reply to: Seller_kPcWuGUzXanoE's post

,As you know, HAQM is the biggest platform, and thousands of new sellers are coming daily. Raos is not permanent for any product. It fluctuates based on the competitors' campaigns and listing data. I would advise you to focus on some outside resources besides HAQM PPC. Maybe you heard about Organic SEO methods. I am selling in Home & Kitchen, and my PPC is not that profitable, but outside marketing is bringing me good sales. You can try 360 marketing by HAQM Ranking Expert. Also increase your CPC based on current competitor data.

10
user profile
Seller_HSvuKgkMn6xEz
In reply to: Seller_kPcWuGUzXanoE's post

,As you know, HAQM is the biggest platform, and thousands of new sellers are coming daily. Raos is not permanent for any product. It fluctuates based on the competitors' campaigns and listing data. I would advise you to focus on some outside resources besides HAQM PPC. Maybe you heard about Organic SEO methods. I am selling in Home & Kitchen, and my PPC is not that profitable, but outside marketing is bringing me good sales. You can try 360 marketing by HAQM Ranking Expert. Also increase your CPC based on current competitor data.

10
Reply
user profile
Seller_i6S8knzW6zU6Z
In reply to: Seller_kPcWuGUzXanoE's post

Hi @Seller_kPcWuGUzXanoE,

Thank you for starting this conversation. That’s a topic many of us think about, and these discussions help everyone.

To better understand your situation, I looked up your store name from your forum profile. Am I right that you’re referring to your Smart Cutting Board and Knife Set? As a parent, I really appreciate what you’ve created. After all, who doesn’t want healthy food and safe, hygienic meal prep for their family?

There are two perspectives I’d like to add to this conversation:

1. "ROAS Lag" — Sometimes it’s just the math

You mentioned your ROAS has dropped recently, over the past month. ROAS is calculated as attributed sales divided by marketing cost. While the cost side of that equation is usually finalized quickly (about 24 hours after a click), the sales side takes longer to "settle." Depending on the campaign type, HAQM attributes sales for either 7 or 14 days after the original click.

So if you’re reviewing ROAS for the most recent week, it might look artificially low - because all the ad spend is showing, but not all the relevant sales have come in yet. Often, if you check those same numbers again in a week or two, the ROAS will have improved - sometimes by quite a bit.

2. The impact of competition

When I searched "Cutting Board and Knife Set," I noticed several other products that, at first glance, look very similar to yours, and some are listed at lower prices (examples: B0CZMBYG43, B0CP31FPGC, B0CGV23LFF). While I couldn’t see when those listings were created, increased competition likely plays a role.

Let’s break it down using the ROAS equation: ROAS = Attributed Sales / Ad Spend

Looking closer:

  • Attributed Sales = Clicks × Conversion Rate × Product Price
  • Ad Spend = Clicks × Cost Per Click

Which means:

  • ROAS = (Conversion Rate × Product Price) / CPC

So, when competition rises (as it eventually does for almost everyone), price pressure tends to increase. If you hold your price steady while new sellers lower theirs, your conversion rate might decline as more shoppers compare options. And when more sellers bid on similar keywords, click costs often rise as well. Together, this puts downward pressure on ROAS - even without major changes on your side.

I know this kind of "back-of-the-envelope" math doesn’t capture the heart and soul we put into building unique products - but I wanted to share this perspective so you have time to plan your next moves. You’ve already proven you can launch successful products, so if the category shifts, you’re more than capable of finding your next hit.

Hopefully this is just a temporary phase and your ROAS bounces back soon. Either way, these headwinds are something all of us face sooner or later - and it’s always wise to keep an eye on possibilities for growing your portfolio.

Wishing you continued success,

Michael

20
user profile
Seller_i6S8knzW6zU6Z
In reply to: Seller_kPcWuGUzXanoE's post

Hi @Seller_kPcWuGUzXanoE,

Thank you for starting this conversation. That’s a topic many of us think about, and these discussions help everyone.

To better understand your situation, I looked up your store name from your forum profile. Am I right that you’re referring to your Smart Cutting Board and Knife Set? As a parent, I really appreciate what you’ve created. After all, who doesn’t want healthy food and safe, hygienic meal prep for their family?

There are two perspectives I’d like to add to this conversation:

1. "ROAS Lag" — Sometimes it’s just the math

You mentioned your ROAS has dropped recently, over the past month. ROAS is calculated as attributed sales divided by marketing cost. While the cost side of that equation is usually finalized quickly (about 24 hours after a click), the sales side takes longer to "settle." Depending on the campaign type, HAQM attributes sales for either 7 or 14 days after the original click.

So if you’re reviewing ROAS for the most recent week, it might look artificially low - because all the ad spend is showing, but not all the relevant sales have come in yet. Often, if you check those same numbers again in a week or two, the ROAS will have improved - sometimes by quite a bit.

2. The impact of competition

When I searched "Cutting Board and Knife Set," I noticed several other products that, at first glance, look very similar to yours, and some are listed at lower prices (examples: B0CZMBYG43, B0CP31FPGC, B0CGV23LFF). While I couldn’t see when those listings were created, increased competition likely plays a role.

Let’s break it down using the ROAS equation: ROAS = Attributed Sales / Ad Spend

Looking closer:

  • Attributed Sales = Clicks × Conversion Rate × Product Price
  • Ad Spend = Clicks × Cost Per Click

Which means:

  • ROAS = (Conversion Rate × Product Price) / CPC

So, when competition rises (as it eventually does for almost everyone), price pressure tends to increase. If you hold your price steady while new sellers lower theirs, your conversion rate might decline as more shoppers compare options. And when more sellers bid on similar keywords, click costs often rise as well. Together, this puts downward pressure on ROAS - even without major changes on your side.

I know this kind of "back-of-the-envelope" math doesn’t capture the heart and soul we put into building unique products - but I wanted to share this perspective so you have time to plan your next moves. You’ve already proven you can launch successful products, so if the category shifts, you’re more than capable of finding your next hit.

Hopefully this is just a temporary phase and your ROAS bounces back soon. Either way, these headwinds are something all of us face sooner or later - and it’s always wise to keep an eye on possibilities for growing your portfolio.

Wishing you continued success,

Michael

20
Reply
user profile
Seller_rI7BZIczK8iAC
In reply to: Seller_kPcWuGUzXanoE's post

I do a regular daily small amount of PPC and aim to get a ROAS of at least 5. If the sales are slow in general, I stop the ads, because these days the clicks come from frustrated competitors (they don't know yet that this is very risky and that this could make their account suspended for "abusive" behaviour.) It depends on your audience. My ads are the most successfull in the morning.

20
user profile
Seller_rI7BZIczK8iAC
In reply to: Seller_kPcWuGUzXanoE's post

I do a regular daily small amount of PPC and aim to get a ROAS of at least 5. If the sales are slow in general, I stop the ads, because these days the clicks come from frustrated competitors (they don't know yet that this is very risky and that this could make their account suspended for "abusive" behaviour.) It depends on your audience. My ads are the most successfull in the morning.

20
Reply
user profile
Danny_HAQM
In reply to: Seller_kPcWuGUzXanoE's post

Hello @Seller_kPcWuGUzXanoE- and thank you for posing this to the community here on the forums, and I'm glad to see some positive discussion in the thread!

In case it proves useful, you may find value in reviewing this piece of content from our Advertising team deep diving what goes into the ROAS metric and how to benchmark success. It links out to a couple case studies where companies increased their ROAS.

I'll also give a heads up that our Advertising team will be hosting an Ask HAQM event on 6/12 over on this thread, if you'd like to ask any questions to them directly!

Thanks again for posting,

-Danny

10
user profile
Danny_HAQM
In reply to: Seller_kPcWuGUzXanoE's post

Hello @Seller_kPcWuGUzXanoE- and thank you for posing this to the community here on the forums, and I'm glad to see some positive discussion in the thread!

In case it proves useful, you may find value in reviewing this piece of content from our Advertising team deep diving what goes into the ROAS metric and how to benchmark success. It links out to a couple case studies where companies increased their ROAS.

I'll also give a heads up that our Advertising team will be hosting an Ask HAQM event on 6/12 over on this thread, if you'd like to ask any questions to them directly!

Thanks again for posting,

-Danny

10
Reply
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