Question
3. You are selling necklaces on Amazon for $23.99 and your gross margin is 53%. Amazon will let you buy a sponsored listing which means
3. You are selling necklaces on Amazon for $23.99 and your gross margin is 53%. Amazon will let you buy a sponsored listing which means your listing will be shown at the top of the Amazon search results. The average CPC is $0.37 per click. Of those people who click on your listing, 7% purchase the necklace.
a. What is the ROI for this type of advertising? Assume all sales from users who click on your ad are incremental.
Step by Step Solution
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Step: 1
To calculate the ROI for sponsored listings on Amazonwe need to consider th...
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
