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
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
