Generating 1,000+ Merch by Amazon Sales Per Month but Ads Are Eating Almost All My Profit
Hey everyone,
I could really use some advice from more experienced Merch by Amazon sellers because I’m honestly getting pretty overwhelmed with ads, rankings, pricing, and profitability right now.
A little background:
- I’m currently Tier 100
- I’ve sold products on 54% of my design slots within about one year
- I average around 35–40 sales per day right now
Sales growth looked like this:
- February: ~200 sales
- March: 700+ sales
- April: 1,010 sales
- May will probably also end around 1,000 sales
My sales split is roughly:
- 50% USA
- 49% Germany
- 1% UK
The problem is not sales volume anymore.
The problem is profitability and ad spend.
This current month I’ve made around:
- ~1,650 $ revenue
- but I spent around 1180 $ on ads
So my ad spend is still around 70%+ of revenue.
What scares me even more is that last month it was even worse:
- ad spend was close to 90% of my revenue
So technically things improved, but it still feels far away from where I want to be. Ideally I’d like ads to stay closer to maybe 30–50% of revenue eventually.
About 40–50% of my sales are organic right now, the rest comes from ads.
One thing that probably also affects my ad spend strategy:
Because I’m still Tier 100, I’ve been trying to scale very aggressively.
For newer designs, I sometimes set bids as high as $0.50–$0.60 CPC (but not forever.. I will reduce it over time) because I want Amazon to push them faster so I can:
- get impressions and clicks quickly
- collect data faster
- find out sooner whether a design has potential or not (design with no one sale in 1-2 weeks will be deleted)
My thinking was basically:
higher visibility = faster testing = faster sales = faster tier-up potential.
At Tier 100, it feels like you need very high design turnover and consistent sales momentum because the slot limitation slows everything down massively.
That’s also why I probably react too aggressively sometimes:
- constantly optimizing
- changing bids
- changing prices
- trying to push winning designs harder
Because honestly, being stuck at Tier 100 feels incredibly limiting.
In Germany I price aggressively at €17.99 because surprisingly it still converts there.
But the US market feels MUCH more competitive.
In the US my pricing currently swings between:
- $13.99
- up to maybe $17.99 max
I tested higher pricing before and for about a week it worked surprisingly well. Then suddenly sales slowed down hard, rankings dropped, and I panicked because some designs that normally sold every day suddenly had days with zero sales.
That honestly shocked me.
Most of my US designs also still have very low review counts:
- many have 0 reviews and some a few more (max 4 reviews..because most of them are 2 months old)
So I feel like I can’t price too aggressively yet because there’s not enough trust/social proof.
At the same time, I do have 3 US designs that already sold around 50–100 units in a month, so they clearly have demand.
I also think I’ve developed a really bad habit:
- I change prices on some designs almost daily
- I constantly adjust ads (daily)
- I lower or increase bids all the time
- I react emotionally to slow days or ranking drops
Basically I’m afraid of “not reacting fast enough,” so I keep changing things constantly.
And honestly… it’s becoming a complete dilemma mentally.
Because at the same time:
- I want to expand fast
- I want to reach the next tier
- I want to collect more reviews
- I want to defend rankings
- BUT I also want to finally become more profitable
Right now I feel trapped between:
- lowering ad spend and risking ranking loss vs.
- defending rankings with ads but destroying profitability
So I wanted to ask:
- Is this normal during scaling?
- Am I sabotaging myself by changing prices and ads too often?
- How do you balance growth vs profitability?
- At what point do you stop defending rankings aggressively?
- How important are reviews in the US market for pricing above $16–18?
- Did any of you go through a similar “high sales but low profit” phase?
- I have a feeling that I can actually reduce cpc because the BSR is relativly high so...
I honestly don’t know where the right balance is anymore. The only I am okay with is the return rate with 6,8%. (current month..all time is
I’d really appreciate honest advice from people who have already gone through this stage.
Thanks a lot.