Amazon Seller Dictionary

This dictionary is designed to help Amazon sellers quickly understand the most important terms used inside Amazon’s ecosystem.

Return on Investment (ROI)

Return on Investment (ROI) measures how much profit (or loss) you make from an investment relative to its cost — a straightforward way to evaluate the success of PPC campaigns, inventory purchases, or other Amazon selling expenses.

What is Return on Investment (ROI)?

ROI shows the efficiency of your spending. It's calculated as [(Revenue from Investment – Cost of Investment) ÷ Cost of Investment] × 100, expressed as a percentage.

Why ROI Matters for Amazon Sellers

  • Helps determine if ad spend, inventory buys, or tools are profitable
  • Allows comparison between different campaigns or products
  • Guides budget allocation to the highest-return activities
  • Reveals whether you're actually making money after all costs
  • Essential for scaling sustainably without burning cash

How to Improve Your ROI

  • Optimize PPC bids and keywords for better ACOS → higher ROI
  • Negotiate better supplier costs to lower COGS
  • Focus on high-margin products with strong conversion
  • Reduce returns and fees through better listing quality
  • Use data to cut underperforming campaigns fast

Monitoring ROI & Financial Changes

ACoS can fluctuate due to bid adjustments, increased competition, listing updates, price changes, or Buy Box ownership shifts. AMZMonitor continuously tracks ACoS-related signals such as price changes, Buy Box winner movements, and competitor activity, helping you quickly identify the root cause of performance drops or spikes. Real-time alerts allow you to take immediate action, protect profitability, and optimize campaigns before wasted ad spend occurs.

Track Price Changes with AmzMonitor Track Buybox Changes with AmzMonitor
AmzMonitor helps Amazon sellers monitor their products, competitors, and keyword rankings, as well as receive alerts for price changes, bad reviews, and hijackers. Try our 14-day free trial