Back to Basics: What is Amazon PPC?

Posted: Dec 14

What Is Amazon PPC | The Essentials  


Are you considering Amazon PPC ads to amplify your product sales?  If you are new to advertising, it’s pivotal to learn the basics as you make your choice. Let’s start with the most basic question: 


What Is Amazon PPC?


Amazon PPC is an advertising method where you bid in a keyword auction for choice slots. If you “win” the auction, your ad will appear when a customer searches for your keywords. You only pay when a customer clicks on the ad, hence the name pay-per-click (PPC). This method includes three ways to advertise:


Sponsored Products help you promote individual products on Amazon search results and Amazon product detail pages utilizing keywords.


Sponsored Brands increase the visibility and awareness of your brand and are found on the Amazon research results page. They display your brand logo and custom headline and allow you to showcase up to three products.


Sponsored Display Ads increase your business discoverability and are based on customer activity. Use them to retarget visitors who have visited or bought products from other sellers in the same category. The ads can be displayed on Amazon and third-party sites, depending on who you are targeting.


Which Sellers Can Use Amazon PPC?


Sellers and vendors can use PPC on Amazon. Sellers are marketers who sell their products directly to Amazon buyers. They may choose to ship products themselves to buyers or allow Amazon to do it. 


Unlike sellers, vendors sell their inventory to Amazon, and it markets and ships these products to its customers.


Both may participate in Amazon PPC, but sellers must also register with Amazon Brand Registry.


How Much Does Amazon PPC Cost?


PPC on Amazon works on the auction model. The highest bidders obtain the best placement on the Amazon advertising platform and pay the highest cost-per-click (CPC). The cost usually ranges between $0.02 – $3.00 and can vary depending on:

  • Production category
  • Placement
  • Advertisement type
  • Supply and demand situation


Is Amazon PPC Worth It?


There are several ways to attain maximum sales for your goods, and among them, Amazon PPC holds the top position as the most effective and worthwhile. How is that?

  1. Amazon is an online retail platform and has an enormous customer base that is expanding exponentially every year. Amazon PPC can help you successfully engage these customers and increase your sales.
  2. As Amazon already has a long queue of potential customers ready to buy, sponsoring your product with Amazon PPC ads is the fastest way to reach the top of the Amazon Search Results Page (SERP).
  3. One of the most lucrative benefits of Amazon Pay Per Click is that it enables you to highlight your products at prominent placements on the Amazon platform. This position increases the visibility of your goods and helps increase sales.
  4. Amazon PPC lets you create ad campaigns for your products and control your marketing budget according to your goals. 
  5. You are not required to pay for the ad placement and impressions. You only pay when a potential customer clicks your ads. 
  6.  Amazon provides detailed reports that help you gauge the efficacy of your ads and make improvements accordingly.





What is a good conversion rate for Amazon PPC?


You should aim for 1% – 2% clickthrough rates and 5%-10% conversion rates. If you’re getting higher than 10%, then you might want to consider increasing bids until you get closer to those numbers.


How do I know whether my Amazon PPC budget was successful?


When you set up your campaign, you specify a daily spend amount. When you reach that goal, Amazon sends you an email letting you know that you’ve reached your target. Once you hit your target, Amazon stops sending emails about your spending progress.


Can I run multiple Amazon PPC accounts at once?


Yes! There’s no limit to how many accounts you can have running simultaneously. However, it may be more cost-effective to consolidate all your accounts into one if they share similar objectives.


Do I need to create separate Amazon PPC accounts for each product line?



Interested in conquering Amazon together?


AMZ Bees is an e-commerce agency that grows and manages brands on Amazon with advanced PPC strategy, listing conversion optimisation and problem solving.


Phone number 1-231-825-3486



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