Tag Archives: Amazon PPC advertising

Basics of A+ Content in Amazon

Selling on Amazon has become one of the more effective sales channels for both sellers and vendors. The competition of selling on Amazon is cutthroat, so sellers must employ whatever tactics can improve their chances of sales. A+ Content is something that definitely gives you an edge over your competition.

It is a tool offered by Amazon that allows you to showcase your product and brand image with extravagance. With the A+ Content, you can put up images, videos, and enriched text that describes your product well.

However, there are some eligibility criteria that a seller must fulfill to be able to use A+ Content for advanced marketing. Sellers must be registered with Amazon’s Brand Registry. Also, Amazon’s managed selling programs have the function of adding A+ Content to the products.

Such services like Launchpad or Amazon Exclusives provide automatic access to their clients. Eligible sellers can add A+ Content to any ASIN that they own according to the GCID.

Limitations of Enhanced Content

There are 2 cases in which you can’t add A+ Content on your Amazon product pages.

  1. If a retail vendor has already put up A+ Content on the same product with a different ASIN, Amazon won’t allow you to add additional Content.
  2. Brand registry isn’t available for products in the media, video, digital, or books categories. For this reason, adding A+ Content to such products is also not applicable.

The Benefits of A+ Content

  1. Better Conversion Rates: These days, selling is all about visuals. Things that look good, sell better. The millions of customers browsing through N number of products on Amazon can be swayed into actually becoming paying customers through more graphic conviction. A+ Content can prove to be a great deciding factor for potential customers.
  2. Reduced Return Rate: With A+ Content on Amazon, a seller educates the customer deeply. So much space to talk about the product and the brand gives the customer a greater understanding of the product they are about to buy. When customers put in the time and effort before buying the product, they are less likely to return the products.
  3. Better Reviews: Consumers love to talk and give their feedback on the product pages. Potential customers who scroll through your product page and actually go through the A+ Content will most likely also look at the reviews. With great branding content, customers are impressed easily and tend to leave better customer reviews. After all, A+ Content is all about improving the customer’s experience.

How to Get the Most out of A+ Content

  1. Talk about the Differentiating Factors of your Product: Great business is all about problem-solving; you address a problem and present a solution. Content marketing is all about emphasizing these points. In your A+ Content, make sure to include all the relevant information about the product’s specifications, but more importantly, talk about how the product fits into the customer’s life. The additional real estate for texts and visuals is all you need to do a great job communicating with your market.
  2. Provide Product Details that Drive Purchase Decisions: There are thousands of products in similar categories. On an online marketplace as gigantic as Amazon, customers have all the choices they could ask for. What drives their purchase decisions is the small variations in details that make all the difference to an educated buyer. Try to enhance what you think are your product’s selling points and emphasize the points that drive purchase decisions.
  3. Simplify your Story: Just because you have more Content that you can generate doesn’t mean you have to fill the space with too much information. The point of A+ Content is to use text and visuals to simplify the communication between you and the customer. Break down the complexity that might revolve around the product and simplify the use of the product.

Restrictions and Rules of A+ Content

There are some specifics that you must follow to avoid your Content being rejected by Amazon.

  • Referencing your company as a seller or distributor or providing any company contact information
  • Mention of competitor products or seller authorization
  • Pricing or promotional information
  • Shipping detail information
  • Inclusion of copyright, trademark, or registered symbols
  • Boastful comments
  • Time-sensitive products (hard sales copy)
  • Customer reviews from Amazon or any other site
  • The editorial or third-party quotes from external sources (magazines, television shows, etc.)
  • Blurry or low-quality images
  • Lifestyle images not showing the product (except brand story photos)
  • Too many duplicates of the product images from the main image block
  • Warranties or guarantees
  • Attempts to mimic Amazon logos
  • Logos from other organizations
  • Links to other websites or (verbal) redirects to other sites (inside or outside of Amazon)
  • Grave grammatical or punctuation errors, misspelling, strings of all caps text
  • Abusive images
  • Criminal activity
  • Violations of category requirements or Selling on Amazon Policies
  • Content is written in languages other than the local marketplace language
  • Adult product content
  • Subjective language
  • Unverified claims, e.g. safety claims, energy-saving claims, drugs, beverages, food, health products
  • Images containing watermarks or unreadable text – font size must be greater than 16

If you are a seller or vendor on Amazon, there is no better way to improve your customer’s journey from being a wanderer on the internet to an actual buyer than by adding A+ Content to your product page. It is a sure-shot way to increase your chances of being a better-rated and more successful seller on Amazon.

For further information on Amazon, you may contact us or visit our website www.bmconsulting.in

*******This blog is compiled by Divyanshu Gupta*******

Please follow and like us:

How to Win the Amazon Buy Box

The “Buy Box” button on Amazon product pages allows users to buy the product immediately. The two types of sellers on Amazon are Amazon themselves and third-party sellers that list their products on Amazon. The same product can be sold by various vendors online. When that happens, and a customer clicks the “Add to Cart” button, the vendor who has the Buy Box gets the sale.

The buy box provides the customer with an instant buying experience without caring about who they are buying from. In 2020, Amazon sold $386 billion worth of products, out of which $320 billion came from the buy box. So as an estimate, 83% of all sales on Amazon happen through the buy box.

The buy box rotates between vendors who meet the eligibility criteria and have competitive prices selling the same product. The buy box also considers things like the new condition of the product and location as well.

Amazon does share the buy box with third-party sellers, but it doesn’t do so usually. The lowest prices don’t guarantee the buy box since the price is not always the factor determining the buy box.

How it Works

The buy box is based on a tedious algorithm based on seller history, prices, location, and variables sold of the same product. All sellers of the same product are analyzed, and then the buy box is rewarded to the seller that Amazon deems to be the best buying option for the particular product. Earlier, Amazon awarded the buy box to a particular seller, but now it rotates between multiple eligible sellers.

Factors for Eligibility

Amazon doesn’t publicly disclose the metrics of the buy box, but there are obvious likely factors that can help you if you’re an Amazon seller looking to win the buy box. A few factors in the checklist that every Amazon seller must tick to be eligible for getting the buy box.

It is all, in essence, about the customer experience. Fulfilling these requirements should be the top priority of merchants looking to score the coveted buy box.

1. Fulfillment Method: Fulfilment is the most important factor considered when it comes to the buy box. Amazon is very stringent on providing their customers with premium fulfillment of deliveries, with same day and next day delivery options available for Prime subscribers.

There are 3 ways a merchant can deliver orders on Amazon; FBA (Fulfilment by Amazon), FBM (Fulfilment by Merchant), SFP (Seller-Fulfilled Prime).
For obvious reasons, Amazon prefers FBA because it controls the entire process, including warehousing and shipping.

But SFP is sometimes given more priority than even FBA because SFP sellers are merchants that can reach prime customers without taking up inventory space in Amazon warehouses.

2. Landed Price: Landed price refers to the final price paid by the customer, including shipping and taxes. Sellers must take these factors into account while pricing their products on Amazon. Sellers make the mistake of thinking that lower prices alone will get them the buy box.

It is an important point, but not the all-important one. So, pricing your products appropriately will get you one step closer to getting a buy box.

3. Shipping Time: time spent shipping the products is an important factor from eligibility for the buy box. Shipping is arranged in 4 different brackets, including 0-2 days, 3-7 days, 8-13 days, and 14 days or more. These shipping time brackets can be seen on the product page. If you can get your shipping time to be as low as possible, you’d be increasing the chances of getting the buy box.

4. Stock Availability: If you have found yourself eligible for the box and run out of product inventory, the buy button will automatically go to another merchant. Similarly, you must maintain strong stock levels to have a smooth possession of the buy box.

5. Order Defect Rate and Returns: If your product is constantly returned because of the defect and other reasons, your chances of getting the buy box will be thin. You have to make sure that your deliveries are on time and the product is free from damage.

A late delivery rate is also something you must keep in mind. The late shipment rate is the orders that reach after the mentioned delivery time bracket. Similarly, you must keep your Delivered-on time rate high.

6. Feedback Rating: Customer feedback is one of the most important sources of credibility. Amazon provides full transparency, with customers posting actual pictures of the product, enabling the user to compare them from the product images.

Nailing these factors and more is highly necessary to ensure good reviews from your customers. Also, encouraging your customers to review your product on Amazon will help you get the buy box since more reviews mean more credibility.

The Amazon Buy Button is a great tool to reflect customer validation and authenticity on Amazon. It is also a great way to make sure that customers buy from you over your competitors who sell the same product.

For further information on Amazon, you may contact us or visit our website www.bmconsulting.in

*******This blog is compiled by Divyanshu Gupta*******

Please follow and like us:

Importance Of Budget Report For Amazon Sellers

Amazon is the largest online marketplace in the world for a reason. You will find almost everything you need on this shopping portal. Amazon is one of the quickest ways for small and medium-sized businesses to list and sell their products. If you are good at advertising your product, then there is no force in this world that can stop you from achieving a shining success on Amazon.

Amazon advertising can help you gain profits quite easily as compared to other paid advertising methods. As a matter of fact, the conversion rate for Amazon Sponsored Products ads is significantly higher than the Google Shopping Ads. This shows that for an online retailer, the best way to ensure the sales of his product is to gain proficiency over marketing through sponsored product ads.

To provide a seller with insights into the product campaigns, reporting is made available in seller central, which allows you to download specific reports about your campaign. Reports grant you access to account-level data for sponsored products, sponsored brands and sponsored displays.

These reports help you measure your ad performance so that you can optimize your campaigns accordingly. There are different types of reports which include targeting report, campaign report, search term report, keyword report and advertised product report to name a few.

Amazon recently introduced a new report metric for the Sponsored Products, which is known as the Budget Report. This report shows you how your campaign performance gets affected when your campaigns go out of budget. Following metrics are included in the budget report:

1. Average Time In Budget – This metric tells you the percentage of time when your campaign was within budget.

2. Estimated Missed Impressions –It can be easily concluded that you won’t receive any impressions if your campaign is out of budget. This particular metric tells you the estimated number of impressions you might have received if your campaign had not gone out of budget. This data is gathered with the help of estimated missed clicks and historical CTR.

3. Estimated Missed Clicks –Just like the impressions, this metric gives you an estimated number of clicks you might have received if your campaign had not gone out of budget. It is to be noted that this number is just an estimate and some campaigns might not even have enough data to provide this estimate.

4. Estimated Missed Sales –This metric provides you with an estimated number of sales you missed out on when your campaign was out of budget. Estimated missed clicks and historical sales data are used to predict the est. missed sales.

5. Recommended Budget –This metric gives you the budget amount you should consider to minimize the chances of your campaign running out of budget. This will also keep you from missing out on impressions, clicks and sales.

Analyzing these reports allows you to assess the performance of your campaign and make changes to it if necessary. The data gathered from these reports can help you make campaign-related decisions quickly and help you boost your revenue from advertising.

For getting more information regarding Amazon Marketing Services, you may contact us or visit our website www.bmconsulting.in

Please follow and like us:

Tips to boost your sales on Amazon during Weekends and Holidays

Boost Your Sales on Amazon

What do you generally do when the festive season or holidays are upon you? Lots and lots of shopping, right? Well, at least that’s what the majority of people around the world prefer to do. And this is not just limited to the holiday season but also applies to weekends. People have a lot of free time during this period and they prefer to spend their time shopping for their favorite things. And nowadays, there is no better place than Amazon to order anything you need at the click of your mouse.

In the 25 years since its creation, Amazon has become one of the most important eCommerce platforms in the world.  More than 197 million people around the world visit this platform every month, which is a prominent measure of its popularity. So naturally, if you are a seller on Amazon, you would want to ensure that you have prepared in every way to boost your sales, especially around the weekend or holiday season.

Below is a list of few tips that you can follow in order to increase your sales during this period.

1. Make your product visible: You will only be able to see an increase in your sales chart if your product is visible to your customers. If they can’t see your product, how do you expect them to buy it? Keyword optimization and proper advertising are two important factors that decide the visibility of your product. So before you do anything else, ensure that you have entered all the relevant keywords in your catalog and have created proper advertisement campaigns for your product. The customer should be able to see your product the moment he types in your keyword. In addition to this, also ensure that your products are photographed neatly and presented well as that is the only you by which can make your products look appealing to your visitors.

Make your Product Visible

2. Advertising: Since advertising click costs increase by two or three folds during the holiday season, it is essential to spend your advertising budget wisely to maintain a profitable ACoS. You need to define your budget for advertising so that you will be able to calculate the profit for your items. Ensure that you create new campaigns for the holiday season rather than running the same ones throughout the year. You can even use Amazon’s ad platform on sites like Facebook and Instagram. These ads will always be less expensive than Amazon itself and will save you a lot of money. You can even consult an account manager who will help you to run festive deals and promotions for the price-sensitive customer.

Advertising

3. Stock up on inventory: Holiday season means that a lot of people are going to order your products and you are going to be flooded with deliveries. Many sellers, including Fortune 100 companies run out of inventory during this period which costs them hundreds of thousands of dollars in lost sales. So it is wise to fill up your inventory well in advance to ensure timely deliveries to your precious customers.

Stock up on inventory

4. Create an efficient backend operations team: An effective backend operations team will ensure that you are well-equipped to deal with any possible scenario that might surface during the holiday season. Responding promptly to buyer messages, ensuring timely refunds and replacements and monitoring sales reports are some of the important tasks that this team can handle to retain your customers.

Create an efficient backend operations team

Increasing your sales on Amazon can be easy if you know how to take advantage of the holidays. So if you wish to convert your visitors into your customers, then follow the steps mentioned above and prepare accordingly to get the most out of this weekend or holiday period.

For further information, you may contact us or visit our website www.bmconsulting.in

Please follow and like us:

Why sales have gone down

Why sales have gone down

Sometimes, sellers are doing just fine when all of a sudden, the sales start varying and dropping day by day.

Here are a few reasons why this happens. 

1. Losing the Buy Box

Most of the sales happen through the Buy Box, which is the best place for generating sales for all third-party sellers who want to be successful on Amazon. They must always aim to win the Buy Box on Amazon, which gets rotated between sellers that are deemed good enough to have it.
If you are the only person who sells the product on Amazon, then you will be fin, but if there are multiple sellers, you will be facing serious competition for the same Buy Box.
So, if you have lost the Buy Box, or it is being shared with different sellers, this can explain the reason as to why your sales have dropped all of a sudden.
If you want the Buy Box back, you must make sure that you have good software, and that you are competitively priced. Your feedback should always be positive and as engaging as possible.

2. Experiencing negative feedback

There are two ways for a person to leave their feedback on Amazon, one is for the seller (seller feedback) and the other is for the product they’ve purchased (product review).
If you are a private label seller then getting a 1-star product review can hinder your sales dramatically. Any bad seller feedback review is bad for your product. The moment you get negative feedback, you should examine the problem and find out where it is within Amazon’s feedback guidelines. If there is a problem with the shipping, then Amazon will remove this feedback, so that it doesn’t affect the product.
The other feedback can be removed by the customer if you work with them on the problem and solve any misunderstandings they had with the product/service. But, never force a seller into removing feedback.
Find out where you went wrong, and do whatever you can to regenerate sales.

3. Look up your product the way a customer does

You should always put yourself in the customer’s shoes and think the way they would. Check your product’s visibility, if your product is on page one or not, how your product is being displayed on the mobile. Check if you have listed your products with the correct keywords and that your images are updated and of the best quality.

4. Seasonal trend

Sometimes, based on what you sell, you may experience some months when your sales are slower than usual. Like sunglasses are bought more during summer instead of winters. It is good to keep track of when your figures escalate or fall so that you can identify any seasonal trends.

5. Ending a sales promotion

Sometimes, Amazon sellers decide to run promotions for the entire year in order to boost sales and product visibility. If your promotion has recently ended, then it might be the reason why your sales have gone down all of a sudden. This is why you should keep track of any campaign dates that you have in order to know when it ends and how it affects sales.

6. Check your campaigns

Many Amazon sellers use Amazon PPC ads in order to drive traffic to their product listings. Using an Amazon PPC campaign can directly affect your sales if your payment method gets denied or if your Amazon Sponsored Ad campaign comes to an end.

Conclusion
There will always come a time where your product will experience a drop in sales. However, you should ask yourself some questions, like what your competitors are doing, what your buyers are doing, how your prices are as compared to your competitors, and your reviews.
However, this slump is always temporary and along the year, this will even itself out.

Please follow and like us:

Know How to Win the Amazon Buy Box

Amazon is the biggest marketplace on the digital platform, one may call it ‘the marketplace’ which rules the e-commerce world on the internet. Sellers and buyers flock the website, alike and if you are a seller on the Amazon, you must be aware you are not the only seller for the particular product type; there are about hundreds of sellers of similar product type. So, imagine the competition.

Amazon BUY BOX race

 

What can one do to beat the competition and move ahead in the number game? Well, Amazon comes ahead to solve this universal problem so that the sellers do not have to face problems on the website. Amazon gives its sellers many opportunities to have a better reach and visibility(provided, they are paid) and sell their wares and products at competitive pricing and profits.

One such sponsored ad facility that Amazon provides its sellers is the ‘Buy Box’. For all those unaware what a Buy Box is, it is the section that appears on the right-hand side of the product information page that allows the buyers to either move the chosen product to their cart or make a purchase instantly.

Why Buy Box?

Buy Box is, invariably, a pivotal tool for the sellers who are looking to sell their products and get higher profits using the Amazon marketplace. When a buyer moves the products from the product information page to his or her cart, they are planning to buy from a single seller, thereby, turning this into buy box winning for the seller.  And the seller is the buy box winner if the buyer makes an instant purchase by clicking the ‘Buy Now’ button.

Since every seller has to comply with Amazon’s rules and policies, getting a place in the Buy Box is a clear indication that the seller is associated with Amazon’s policies. Buy Box, in simpler words, can either make or break the sales of the seller.

Who is eligible to get the Buy Box?

Anyone who has subscribed to the professional sponsored tools provided by the Amazon and is in compliance with Amazon’s policies is eligible to get the Buy Box on Amazon.

How to win the Buy Box?

Everyone speculates about the theory behind the Buy Box when, in reality, no one is really sure about the behind-the-scenes of the tool. Everyone wants to win the Buy Box but not everyone can do so. We have listed a few ways using which you can win the coveted Buy Box.

  • Pricing is the key factor 

Price of a product is what pulls the buyers more than the quality, or the features(granted they are important, but not so much as the price). Having competitive pricing on Amazon will help you in moving one step closer to winning the Buy Box. Keep up with the competitive pricing and also, keeping a check on the rivals’ pricing will help in keeping your pricing in control.

  • Maintain the sellers’ rating

Sellers’ rating on Amazon is of critical importance which has a great impact on your winning the Buy Box. Speedy and efficient delivery, pricing, customer feedback and response, customer care, redressal to the grievances and most importantly, building a good reputation in the minds of the customers is what will help you in increasing the sellers’ ratings and in turn, increase your chances of winning the Buy Box. 

  • Keep the Order Defect Rate at the minimum

More the complaints and negative feedback from your buyers, lesser is the chance of you winning the Buy Box. Forget winning, you might lose the eligibility of the Buy Box on the whole if the ODR reaches 1%. This requires minimum to nil mistakes on your part and better customer satisfaction ratio.

However, one important factor to keep in mind is that nothing is stable and secure in the field of e-commerce platform and one mantra cannot work for everyone alike. Similarly, with the Buy Box, there are many uncertainties surrounding it. Simply keep up your good work, product quality, pricing, customer rapport, and fewer mistakes and you will have better chances of winning the Buy Box.

 

Please follow and like us:

How does bidding work – Amazon Sponsored Ad

How does bidding work - Amazon Sponsored Ad

When you bid for your Amazon campaigns, it can almost be considered a perfect science. In Amazon, the seller bids on the search terms. The one with the highest bid and a quality ad, wins. When a customer searches that term, your ad will show up and you won’t have to pay for that ad until the customer clicks on it.

When a seller begins an Amazon PPC campaign, they are usually confused about their starting bid. The best way to start is by an incredibly high AcoS, using the Inch-Up Method. Once you start bidding, you will have enough data. In the Amazon Product Ads Program, instead of paying a revenue amount of share, the pay per click and then you get the same amount of traffic on your site as a traditional shopping engine works. It converts very well and their CPC is the highest.

How to optimize your bids in a new sponsor product campaign ad 

Most sellers choose one of the two methods for bidding, which actually depends on finding the smallest bid you need to get the most information possible. Now, there are two different strategies, them being Fast and Sloppy, and the other one is called the Inch-UpMethod.

In the Fast and Sloppy method, the strategy that is used involves bidding aggressively. Overshooting prices and then lowering it is also done. It’s still pretty huge on Amazon. When you use this process for a few months, you will end up with a lot of areas where you overspent, and what you should have done instead.

The better strategy is using the Inch-Up Method. The way that good PPC optimization works is to find the smallest bid and get the most information. With a small bid, you can get a keyword you are not sure about and don’t know how it will perform. In the start, it goes from zero clicks to more conversions by the end of the week. The same conversions that you pay more for in the Fast and Sloppy method, you pay less at the Inch-Up Method.

The Inch-Up Method Helps Avoid Over-Spending

This method helps you save your money. You will have to constantly overshoot, repeating the process of hundreds of keywords that you are going to probably use for search terms. You will have to brainstorm many strategies in order to get the right keywords to make better conversions. This method helps you find the smallest bid which gives you the most information. Once you get your conversions, you know where to bid. You know how to increase your AcoS and how to get better profitability. So, you know when and how to bid aggressively. This process is slow, but it saves a lot of money when you use and throw hundreds and thousands of keywords in the course of a year.

You are always bidding on keywords, remember that. It doesn’t matter if you choose Automatic or Manual, it is all for keywords. With Automatic, you don’t get to know the number of keywords that are generated for your campaign. The only thing you get to set is the amount you have to pay for Amazon. It is not recommended unless you have an unlimited budget, so you must always choose wise words and bid only as much as your budget allows you too.

The higher your bid is, the better your ad real estate will be. But, if there is a tie between the winning bid of an Automatic and Manual, Manual will get the prime real estate. So, you should always go with Automatic if you don’t know what keywords you need to use, or what did you have to make in order to get profits and make your business succeed, since it is probably your first time doing something like this.

Please follow and like us:

How to increase sales conversion Rate on Amazon

Increase sales conversion rate on Amazon

Profitability is not the most important business feature. Amazon Conversion Rate is required for every eCommerce business, as it is directly linked to your success. You must carefully evaluate your conversion rates by knowing what you are looking for and how anything might influence your business decisions. But you must first find your conversion rate.

How to increase Amazon conversion rate –

Keyword Research

In order to get a good conversion rate, you must see to it that you have a lot of traffic on your site- through clicks and relevant keywords. The best way to do this is by finding similar products and using their keywords in your products, title, the bullet points, and product description. You can also use the Rank Tracking tool to check rankings for keywords.

Optimize your product listing

You can optimize your product listing by finding out the exact wording and imagery to hook your buyers/customers and draw them towards conversion. Using split testing, you can see how changes you make to the listing brings changed interest to your product. When you find successful keywords, tags, titles, bullet points, you can keep them and work on the other ones till you perfect them.

Compare your prices

The best ways to optimize your listing is by finding the correct price for your product. You should start by looking at the competitors’ prices. Picking the cheaper alternative isn’t the best idea, it is a compromise on quality and sometimes profits are more important. You can also try running discount prices to encourage conversions to boost sales.

Amazon PPC

Amazon Pay Per Click advertising is one of the best ways to increase conversions and increase your sales. It brings your product a higher listing. It will appear in front of your customers and will help improve your rankings as well. Your products will show a sponsored front and will be keyword targeted. They will appear in search results which will use keywords given by the consumers. The sellers only have to pay if the customer clicks on your advertisement which takes them to the product listing.

External marketing

You can also use other marketing techniques like affiliate marketers, social media and re-targeting adverts. You must always assume that many customers want to buy your product but they won’t always go on Amazon. So, if you optimize your listing on Amazon, you can use them to market your product elsewhere too. You must add links whenever you promote your product.

Run a promotion 

The best way to attract customers is by offering a discount price for a limited time period. The key ways to increase your ranking is by sales. More the sales, more visibility will be there to potential customers. So, your profits may be low from a promotion, but in the long run, more money will be earned.

Use tools

AMZFinder is a useful tool for improving the rate of conversion. It helps you remove any kind of negative reviews from your listings. They will match the review to the order and send you the buyer’s details so that you can resolve the issues and formulate emails to them, which can end in a positive review instead.
The biggest benefit of this tool is that the problem can be identified early and it helps prevent dragging down the conversions. Instead of any endless research, it gives you direct access to the problem and helps you solve it instantly.

Request positive reviews

User-generated content is being thrived on in the market currently. You can encourage positive reviews by sending follow up emails to customers after different time periods. This reminds the customer politely that you would appreciate their views on the product.

Please follow and like us:

A beginner’s guide to Amazon Sponsored Products

Amazon is the market giant and a global leader in the world of e-commerce. Today, selling on Amazon is no longer an option but has become a necessity if one wants to be visible in the monstrous e-commerce web.

Amazon, singlehandedly, is the largest employer in the whole of United States, with about 550,000 full time and part time employees and there is only one reason for the higher employment rate and that is increased in demand for the products and subsequent sales. There are about 350 million Amazon users all around the globe buying everything ranging from stationary to groceries to fashion to stocking up the daily needs and requirements. After introducing Amazon Prime, there has been a surge in the number of users and buyers on Amazon.

The sellers are benefitting not by just selling on Amazon but also, through the advertising feature of Amazon.

What are Amazon Sponsored products?

Amazon has a special pay per click feature that allowed products that are being advertised to appear in organic search results. When a person keys in the keywords for a product he is looking for, say – shoes, Amazon will bring forward products that are being advertised under the shoes category and meets the keywords that have been keyed in. The sponsored product will appear on top of the search result page and will be denoted by words either ‘Sponsored’ or ‘Ad’.  These ads are far more effective and cheaper than other ad mediums as there are more chances of purchase since the user is searching the product with the intent to buy.

Where do the ads appear?

The Amazon Sponsored products ads appear on the first page of the search result page, either on top, middle or near the searched product, to be easily visible to the buyers.

Amazon Sponsored Ads

Why Amazon sponsored products ads are important?

If you have released a new product or a new line of products, Amazon sponsored ads are the best way to reach the potential customers. They will appear on the search result page and will prompt the buyers to at least have a look and this might, in turn, result in a purchase.

How Amazon sponsored products ads work?

The PPC platform within the Amazon marketplace is a powerful tool to help in discovering products. It appears as a bidding war with the highest bidding seller wins the keywords that will help his products to appear on the first page of the search result pages. Also, it is important to have a creative and quality ad in order to win against other ads in the same field.

Sponsored ads are keyword oriented, thereby meaning that your ad should contain relevant and effective keywords in order to gain Amazon’s automated run through the products. Also, the seller will be charged only when a customer clicks on the ad.

Cost of Amazon Sponsored products ad

When compared too other social media advertising platforms like Google, Facebook, Bing and such, Amazon advertising is far cheaper. Usually, an Amazon PPC ad costs only $0.35, proving to be cost effective. It is also a better option for serious commercial sellers since the customers’ intent is to make a purchase.

Well, one question asked too many times is ‘how much should one spend on Amazon PPC advertising?’ There is, really, no limit to how much should one spend and if you were to ask three different business owners their views on Amazon advertising budget, you are bound to get three different quotes.

How can one measure the performance of the ads?

There are a few indicators or parameters that will help a seller to determine the performance of the advertising campaign on Amazon.

measure the performance of the Amazon ads

  • The number of times the ad has been displayed.
  • The number of times the ad has been clicked.
  • The number of times the ad converted into a purchase. (usually within a week)
  • The number of times the ad created an interest in the minds of the buyers.
  • The Advertising Cost of Sales (ACoS), i.e. the cost incurred – the revenue.

Tips for beginners

If you are a beginner and looking to run your first Amazon sponsored products ad, it is advisable to run both manual and automatic campaigns simultaneously. This will help you determine which keywords work best for you.

Please follow and like us: