My brother-in-law cheated me! The seller's advertising expenses exceeded the budget by 1,000 times

My brother-in-law cheated me! The seller's advertising expenses exceeded the budget by 1,000 times

Amazon advertising is an important channel for attracting traffic within the site. Recently, many sellers have stated that advertising has repeatedly encountered problems after the A9 algorithm was updated some time ago, and advertising costs have soared hundreds of times. Is this a disguised way of "cheating"?


1

Advertising exceeded budget by 239 times


Recently, Pepe saw someone complaining in the seller group that the advertising expenses were a bit confusing, and they spent a lot of money for no apparent reason. Later, when browsing the forum, he found that this was not an isolated case, but many sellers encountered this kind of thing!


Someone on the forum said that he was advertising for one ASIN, with a fixed bid, and his daily advertising budget was usually $1, which was normal before. But last Sunday, he spent $239 in one day! Now he has opened a case and plans to ask his brother-in-law for compensation.


Many sellers left messages under this post, saying that the advertising budget was seriously exceeded, which is absolutely inconsistent with the logic of advertising costs!


It seems I am not the only one who has this problem. I also spent $200 on my $1 budget yesterday. Amazon is definitely to blame and I am already communicating with 3 customer service representatives.



This seller is even worse off. He set a budget of $40, but ended up with $1,800. He is currently opening a case to resolve the issue...


The most terrifying thing is that one seller claimed that 1 USD sold for 1,000 USD!


This is too scary. If the advertising cost exceeds the budget by 1,000 times, who would dare to run an advertisement?


Regarding this issue, some sellers also raised questions:


The budget you set is $1, but the total amount you set for each day is $10 or even more, because if you assume it's $10 a day, that's $300 a month, and Amazon will spend money on you based on this.


However, the seller's budget was $1. No matter how you calculate it, the budget for one month was only $30. The actual outlay was $1,000. There is no way to explain it clearly.


Speaking of advertising budgets, Pepe knows that many sellers may not understand the advertising budget mechanism. After all, one seller posted that he was shocked to tears by Amazon's advertising logic...


2

Advertising logic you don’t know



The seller said: The budget for an ad group was $88, but the actual budget was only $60. Normally, it would be normal to exceed 10%, but $88 really shocked him, so he contacted Amazon and got even more shocking news! ! ! ! !


The following is a screenshot of the customer service response:


 

Customer service means:


Advertising costs are based on a month, which is equivalent to the set daily budget x 30 days = total budget. Therefore, the actual advertising costs of sellers will vary, sometimes exceeding the budget, and sometimes less than the budget. It is equivalent to that your unused budget will be carried over to the next day. For example, if you set a daily budget of $10, but spend $5 on the first day, then the extra $5 budget will be carried over to the next day, and the cost may be $15 on the second or third day. Similarly, if you spend $15 on the first day, which exceeds the daily budget, then the cost on the second day or thereafter will be $5 less. But the total cost will not be much different.

Once advertising costs exceed the daily budget + any carryover amount, the campaign will be paused for that day and Amazon will try to stay within the daily budget.


To put it simply, advertising costs are calculated on a monthly basis, so the actual daily expenses will fluctuate, but the budget for the entire month will not be exceeded.



3

Reasonable advertising costs


The logic of advertising expenses is clear, but if the seller sets a $1 advertising budget that exceeds hundreds or thousands of times, this is a big problem. After all, even if you didn't spend a penny every day before, it would only be $30 at most. So, if a seller encounters this, you can bravely open a case to ask Brother-in-law for compensation and ask for the return of the overcharged advertising fees!


In addition, in order to avoid the advertising exceeding the budget too much, you can set a daily budget in the advertising settings, so that the daily expenditure will not exceed the value you set, and the advertising will be stopped once it exceeds the value. Of course, this also has disadvantages. If the product performs well on the day, the budget is exceeded and it is stopped, which will affect the sales ranking of the listing.



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