Supplement Economics: Balancing High CAC with Strong Margins
High Break-Even ACOS in Competitive Categories
Vitamins and supplements carry intense PPC keyword competition. Knowing your exact pre-ad contribution margin allows you to set aggressive bids up to your break-even ACOS without operating at a cash loss.
Subscription & Repeat Order Margins
While initial customer acquisition on Amazon PPC may run near break-even ACOS, repeat purchases and Subscribe & Save volume drive long-term seller enterprise value.
Frequently asked questions
What is the referral fee structure for vitamins and supplements?
Health & Household products priced at or below $10.00 pay an 8% referral fee, while items above $10.00 incur 15% (with a $0.30 minimum).
How do bottle dimensions influence supplement fulfillment fees?
Standard round supplement bottles frequently exceed 12 ounces. Keeping unit weight plus packaging under 16 oz keeps products in the Standard tier without incurring heavy weight surcharges.