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Hey Reader, Ad spend going up but sales staying flat? You're missing critical warning signs. Most sellers just keep pumping money into campaigns without noticing the red flags. Then wonder why their budget disappears with nothing to show for it. Here are 5 danger signals I check first: 1. High clicks but low orders Your ads get 1000 clicks but only 20 sales. People are clicking but not buying. This isn't an ad problem - it's a listing problem. Your product photos, descriptions, or price are turning people away. Fix your listing before spending another rupee on ads. 2. ACOS above your breakeven point Your ACOS is 45% but your profit margin is only 35%. Looks like you're making sales, but you're actually losing money on every order. Calculate your real breakeven ACOS and stay below it. Otherwise you're paying Amazon to lose money. 3. TACOS keeps rising but organic sales stay flat Total ACOS includes organic sales. If TACOS is climbing but organic isn't growing, your ads aren't helping long-term rankings. You're just buying temporary visibility without building sustainable growth. 4. Auto campaigns still running after 90 days without optimization Auto campaigns help you discover keywords initially. But after 3 months, you should have enough data to create targeted manual campaigns. Letting auto campaigns run forever means Amazon is guessing where to spend your money instead of you controlling it strategically. 5. Broad match keywords with no negative keywords Broad match for "office chair" might trigger for "office supplies," "office rent," or "office jobs." Completely irrelevant traffic that costs money but never converts. Add negative keywords to block wasteful searches, or you'll keep paying for clicks that have zero buying intent. Ignore these signals and your budget bleeds slowly. I've seen sellers spend ₹50,000 monthly with terrible ACoS because they ignored these basics. Same sellers fixed these issues and cut ad spend to ₹30,000 while increasing sales. Smart sellers spot these red flags early and take immediate action. They don't just throw more money at broken campaigns. They fix the fundamentals first. Before increasing ad spend, fix these problems. More budget on broken campaigns just means losing money faster. If you want to learn the right way to do the Amazon business and my Amazon S.C.A.L.E framework, checkout the free training:
See you then. Happy building! Ali Lokhandwala, India’s Top Amazon Expert Once a champion, always a champion.
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India's Top Amazon Expert | Generated over 50 Crore Revenue | Trained 15,000+ Entrepreneurs | I help businesses and entrepreneurs start and scale a profitable Amazon business.
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