System 02 — automation
Amazon PPC Optimization for Profitable Margins
East Star connects Amazon PPC management with SKU-level margins and inventory levels. Product profitability guides our bids and budgets, so ad spend supports sales without ignoring stock risks.
TACOS vs Target: −1.2 pts, Trailing: 90 days.
09:14:07BID ↓ $0.12AQ-FILTER-20 · MARGIN 31.2% · RULE 04
09:14:31NEG ADDED"aquarium decor" · CVR 0.3% · RULE 09
09:15:02BUDGET HOLDAQ-HEATER-50W · COVER 19D ≤ 28D GATE
09:15:40BID ↑ $0.08AQ-PUMP-300 · MARGIN 18.1% → CEILING $1.14
Demonstration log: the bid engine lowers and raises bids by rule, adds negative keywords, and holds budgets when the stock gate from the demand system reports 19 days of cover.
What It Replaces
Relying On ACOS Ratios
A low ACoS doesn't always mean profitable advertising. When bids ignore product margins and stock levels, campaigns can spend money on sales that add little profit.
One ACoS target across every SKU can hide losses on low-margin products. Campaigns may also keep spending when stock is running low.
Bids are set around each SKU's contribution margin , with stock availability factored in. Decisions outside agreed rules are flagged for human review.
Inventory-Aware Amazon Advertising
How Profit-Based PPC Decisions Work
Bid limits reflect each SKU's contribution margin, helping prevent clicks and orders from consuming more profit than they generate.
Inventory levels inform advertising decisions. When stock cover falls below the agreed threshold, spend is reduced to avoid driving demand for products at risk of running out.
Decisions outside the agreed rules are flagged for review, with the reason recorded so the team can assess the issue and decide what happens next.
Contribution-Margin-Based PPC
What The Machine Runs.
What It Never Will.
- Bid changes within rules 2.4K/DAY
- Search-term harvest and negatives DAILY
- Budget pacing HOURLY
- Stock-gate throttling SIGNAL: SYSTEM 01
- Rule and threshold changes LOGGED
- Campaign architecture
- Brand-defense strategy
- Review queue ~6 ITEMS/DAY
Typical results — 2026 cohort, installed ≥2 quarters
Measured On Real Numbers.
TACOS trend, median client: 14.1 percent falling to 8.6 percent over 10 months, against a 9.0 percent target. The final two months are forecast, drawn dashed.
Categories with under 60 days of data run conservative defaults. The ramp takes a quarter. Accounts are told this before signing, and the first-quarter scorecard shows it.
Find Out What Drives Profitable Amazon Advertising
See how your ad spend affects SKU-level margins. Our systems audit identifies where advertising supports profit and where costs may be eating into it.