
07/08/2025
If your ROAS is up but profit is down, read this.
When spend decreases, Amazon’s algorithm plays it safe → only your best-performing keywords get the budget.
When spend increases, Amazon goes shopping with your wallet → chasing less profitable clicks (higher CPCs, more competition, lower ROAS).
So yes, a higher ROAS doesn’t always mean higher profit.
In fact, many sellers fall into this exact trap:
↳ They cut spend on mid-funnel campaigns that don’t convert immediately.
↳ ROAS looks better.
↳ But total sales (and profit) quietly shrink.
The common traps
↳ Cutting ad spend too aggressively
↳ Optimizing one metric in isolation
↳ Forgetting that COGS (cost of goods sold) is a thing
↳ They reduce potential traffic that could’ve led to long-term sales.
What to do instead
↳ Track profit per SKU, not just ROAS
↳ Look at blended margin (ads + organic)
↳ Structure campaigns properly (Auto → Exact → Broad → Product targeting)
↳ Test Sponsored Brand if you’re Brand Registered (cheap reach, if done right)
↳ Use at least a 1–2 week window before judging performance (day-to-day = chaos)
↳ Don’t be afraid to use coupons/vouchers — people love “watching” products and saving them for later
Remember:
Amazon doesn’t care about your ROAS.
Amazon cares about your spend.
You should care about profit.
So let’s stop worshipping ROAS — and start managing the full P&L.