Bestsellers: The Core of Your Business Success
Your best-selling products are a small yet crucial part of your inventory, driving a significant portion of your revenue. These customer favorites often follow the 80/20 rule—where 20% of products contribute to 80% of revenue.
To set up your Bestsellers effectively, three key inputs are required:
1. Date Range
Defines the time period for evaluating product performance.
Recommendation: Use the last 30 days for most businesses. For faster trend detection, opt for a shorter range.
2. Spend Threshold
Identify the average spend per product by following these steps:
Apply a filter for Total Catalog Spends > 0 to exclude products without ad spend.
Use the Summary section to find the Total Catalog Spends.
Divide the Total Catalog Spends by the count of products with spend.
This value represents your average spend threshold.
3. ROAS Threshold
Determine the Return on Ad Spend (ROAS) by using the Summary section after filtering out non-spending products. This helps refine your bestseller selection further.
Once the Bestseller filters are finalized, we will create Product Sets in Meta and Product Groups in Google Ads based on these filters, ensuring targeted promotion across the respective advertising channels.
Setup
Access Product Analytics: Navigate to your Analytics > Product Analytics tool.
Select Your Channel: Choose the specific channel (Meta/Google) you want to operate in. Navigate to Product Sets for Meta and Product Groups for Google.
Create a New Segment: Define filters for Best Sellers as decided based on thresholds.
Build a Segment: Save the segment as a Product Set (for Meta campaigns) or Product Group (for Google campaigns).
Activate Campaigns: Use these sets/groups to drive targeted Meta or Google promotions. Please note that the Product Sets have seen to work best when infused in the ads in Advantage Plus Campaigns
Key Considerations
While the 80/20 rule is a helpful starting point, it’s not universal. Customize your definition of “Bestseller” to suit your business.
Allocate larger budgets to your Bestsellers, as they often deliver higher returns.
Once your Bestsellers are identified, create Product Sets in Meta and Product Groups in Google Ads. Promote them on their respective platforms, prioritizing Advantage+ campaigns for optimal results.
Campaign Optimization Tips
Exclude Cut-Size Products: Avoid promoting low-stock items by configuring stock status rules under Save Budget > Core Size Configuration.
Implement Stop-Loss Rules: Exclude non-performing products from your catalog using Product Stoploss feature (Save Budget > Product Stoploss) and Bestseller product sets to achieve better overall performance.
Evaluating Bestsellers:
Comparing Bestsellers to Promoted Products
A simple yet effective way to understand the value of Bestsellers is to compare them to your other promoted products. This highlights how a significant portion of budget and revenue is often concentrated in this segment.
Key Insight:
If ad spend on Bestsellers is below 70-80% of your total budget, there may be room for scaling revenue.
Tracking Bestsellers’ Health Over Time
While the top 20% of products often drive 80% of revenue, product performance and segments evolve with changing business dynamics. Regular evaluations help maintain alignment with your strategy. Example: Month-on-Month (MoM) Comparison via Product Sets/Product Groups listing page using the key metrics.
Positive Indicators:
Increased spend leads to higher product revenue across all sources.
Growth in revenue from Dynamic Product Ads (DPAs).
Actionable Takeaway:
By monitoring these metrics and adjusting spend allocation, you can balance efficiency and growth while avoiding diminishing returns.
By regularly evaluating Bestsellers, comparing them to your overall Promoted Products, and identifying and rectifying diminishing returns, you can fine-tune your strategy to maximize spend efficiency and revenue growth.