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A Complete Guide to Using Amazon Sponsored Products

Looking for ways to boost sales? Amazon Sponsored Products are a form of PPC advertising, but you need to wield them carefully.

Thinking about selling Amazon sponsored products? But not sure it will be worth the investment?

Perhaps it's better to stick with Google Adwords? Even though they're more expensive. After all, Google rules the internet, right?

Wait a second.

Google is the most popular search engine. But more consumers use Amazon to search for products they want to buy right away.

In this post, we'll cover when Amazon sponsored products can boost sales–and when they won't, how Amazon sponsored products work and how to get started.

Without further delay, let's get to it!

Will Amazon Sponsored Products Make You the Most Money?

Well, it depends if your business sells to consumers or to other businesses. Here are the deets.

Most Consumers Search on Amazon for Products

Google has a monopoly on business to business product results (B-2-B products), but not for consumer sales.

And when it comes to making the sale, 55% of consumers bypass Google and go straight to Amazon.

Google is the tool people use when they're in the ‘just looking' phase or the consideration stage of the buyer's journey. Not the decision stage when they're ready to make a purchase.

This means that there's a difference in the buying process between the two platforms. People looking for products on Google are usually just starting the buyer's journey.

They're just beginning to browse for products to solve their problem but not ready to make a purchase.

On the other hand, when a shopper searches on Amazon, they're more inclined to make a purchasing decision instantly. Amazon also works well if you sell on eBay.

Which Sellers Won't Do As Well with Amazon

Businesses that sell to other businesses known as B2B might have some success on Amazon. But they'll see better returns on Google or LinkedIn PPC ads.

An example of these businesses includes tech companies, consulting firms, and attorneys, to name a few.

What's the Process for Amazon Sponsored Products?

The process of selling Amazon Sponsored Products is a lot like Google Adwords.

  • Merchants choose keywords their target audience will use in their search
  • Amazon sponsored products pop up when people perform searches for them
  • You are charged when someone clicks your advertisement
  • Shoppers are linked to your landing page or Amazon product page when they click on your Amazon sponsored product ad

More About Keywords and Targeting

As we mentioned above, Amazon sponsored ads work similar to Google AdWords. Shoppers find your products through your keywords.

There are two ways you can create keywords. You can have Amazon select the keywords for your products. This is called automatic targeting. New advertisers prefer this method until they learn more about keyword analytics.

Or you can choose keywords of your own (manually) if you know how to create keywords based on user searches. A good practice: select keywords after you view keyword analytics data and see which keywords outperform others.

How Much Does Amazon Advertising Cost Per Click?

Amazon advertising works like paid search advertising or PPC. You pay a per-click price when a shopper clicks on your advertisement. Immediately, the platform navigates the shopper to your landing page or Amazon products page.

Google does dominate online advertising which is why online merchants pay a higher cost-per-click rate (CPC).

Because there is less competition, you pay less for PPC. That's because Amazon sponsored advertising has been on the playing field for around five years.

In contrast, Google Adwords has been in the advertising marketplace for more than 15 years. Cost-per-click was low when Adwords first started.

But as visibility grew and the platform grew in popularity, ad rates have risen as well as the number of online advertisers.

What Does This Mean for You?

It means you pay a lower cost-per-click rate and you won't have to spend as much money for Amazon sponsored ads. This means you get more of your dollars back in your pocket! Sweet!

Amazon uses an incentive for advertisers. They use sales numbers on their platform to choose the position where your products will appear on the page, not advertising dollars like Google and Bing.

This gives new businesses a chance to skyrocket their visibility and get more shopper attention.

How Does Amazon Ad Reporting Work?

Amazon supplies their advertisers with search keyword data for specific keywords. It works similar to AdWords. You have access to this data when you're an advertiser with Amazon.

In the data, you discover which keyword search terms outperform others and which keywords miss the mark.

This allows you to design new campaign strategies, revise your keyword choices, add new ones to up your performance for future ad campaigns.

You might be wondering what keyword data will be reported in your Amazon sponsored ad dashboard.

Here's the search data that Amazon includes:

  • Ad group
  • Campaign
  • Clicks
  • Click-thru-rate
  • Cost per click
  • Impressions
  • Conversions/ which keywords led to the number of sales
  • SKU numbers

At a Glance: How to Get Started?

Wondering what you need to get started with Amazon sponsored advertising? Here are some highlights of what merchants need to get in the game:

  • Merchants need to have an Amazon active seller account set up on Amazon
  • You must have active product listings in one or more product categories on Amazon.
  • Merchants must have what is called a Buy Box. The Buy Box is a box on an Amazon product page that allows customers to start the buying from you by adding your company's products to their shopping carts for checkout and delivery.

The Takeaway On Amazon Sponsored Products

Because Amazon sponsored ads are so new, they present a phenomenal opportunity for consumer business merchants to make a great return on their investment! Cost-per-click is low in the current market.

For businesses that sell to other businesses, in most cases, Google and LinkedIn work best.

If you sell to consumers, it's a wise choice to get started with Amazon sponsored products before the demand skyrockets, more merchants catch on and click rates increase with competition.

Want to know more about where to find products to sell on Amazon? Check out the FBA Coaching blog for great FBA tips and content.