Business

Amazon PPC – The Ultimate Guide

Amazon has more than 300 million customer accounts across 180 countries. It is evident that Amazon is a shopping, Goliath.

Amazon makes a lot of sales through businesses that sell on their platform, rather than directly from Amazon.

Third-party Selling Partners made $3.5+ billion in sales on Prime Day 2021. Businesses of all sizes can sell on brands.

Amazon can be very competitive, so you will need to find a way to differentiate yourself from everyone else in your niche.

You can achieve this by using Amazon PPC advertising. This will give you visibility for your products at the top of Amazon’s search results.

Want to learn about Amazon’s advertising optimization, Check out this amazon PPC optimization guide.

What is Amazon PPC exactly?

Amazon PPC (Pay per Click) is Amazon’s advertising model. Amazon PPC (Pay Per Click) allows advertisers to bid for their ads to be displayed on Amazon. The highest bidder wins the best advertising spot.

Only when a customer clicks on an advertisement, do advertisers pay Amazon the fees they have bid. Amazon PPC ads are sometimes called Sponsored Products.

PPC ads are paid for by sellers when someone clicks on them. A special real-time auction determines the price they will pay.

The first place is awarded to the seller with the highest price for a search keyword. The second highest bidder will get their ad in second place, and vice versa for lower bidders.

Sellers have the option to adjust their bids to reflect the time of day that ads will appear. 

Sellers may be willing to pay lower prices for ads that are displayed in the evening at a specific location than they would for ads that are visible in the morning.

The seller will be required to pay Amazon more for each click that someone makes on a PPC advertisement. This will, however, hopefully, lead to increased sales.

Amazon places sponsored ads in many locations, including organic results.

Multiple sellers may bid for high-ranking positions for ads that target specific keyword terms. Amazon considers two factors when deciding where an ad will appear:

Their CPC bid price: Those who place their ads more often receive better slots

Amazon’s quality factor: This is the probability that someone will click on an advertisement. This bonus is given to high-quality ads. 

It means that an advertiser with a higher-quality ad may bid less for a spot than someone who has lower-quality ads.

Amazon PPC Benefits

Amazon PPC lets you promote your products on a channel that is primarily used for sales. You can target people who are actively looking for your product by choosing the right keywords

These ads can be used to make your brand or product highly visible on Amazon. Amazon offers a variety of targeting options that make it easy to ensure your ads reach the right audience.

You can change the type of ads you use and how your campaigns are run to suit your goals. Amazon offers a lot of flexibility in this area.

Amazon PPC sales can affect your Amazon organic ranking. Your organic ranking for these products will improve the more you sell through your PPC ads.

This is especially useful for products with no sales history.

You should activate Amazon PPC campaigns whenever your product is new on Amazon. However, some recommend waiting until you have at least three to five reviews.

Recommended guide: eCommerce store benefits.

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