When you are launching your first product on Amazon or are already selling on Amazon then you need to have a good PPC strategy. In this post we are going to talk about how to grow sales with Amazon PPC.
What is Amazon PPC?
Amazon PPC (Pay-Per-Click) is part of Amazon advertising. With Amazon PPC businesses selling on Amazon can target their products with specific keywords and create other types of ads on Amazon platform.
Why is Amazon PPC important?
We haven’t met a seller who has been successful selling on Amazon without doing any PPC. You need to do Amazon PPC to be a successful Amazon seller. PPC used to be less important years ago but not today because the market has gotten more competitive. A lot of sellers need to step up their game if they want to be successful.
How to get organic sales on Amazon?
You can get more organic sales on Amazon if your listing is fully optimized (images, copywriting and keywords). But not only with that. You also need to do Amazon PPC to get more organic sales. These two things work together hand in hand. The better you do your PPC the more organic sales you get. This also depends on the level of competition on the market. Not all markets/niches work the same.
Another thing that really affects organic ranking and getting organic sales is pricing. If you have set your price too high then your ranking on Amazon might decrease with your organic sales. You need to find the right pricing point for your product.
So as you see already, to successfully grow sales with Amazon PPC you need to do a lot of things right before that. Before we dive into how to grow sales with Amazon PPC let’s talk about some of the things you should know before that.
How much does Amazon PPC cost?
Amazon PPC cost varies for each seller. Depending on how many ads they are running and how competitive the market is. In some categories the cost per click could be even $6 or more to be in the top positions on Amazon. If you are targeting long tail keywords you can get clicks for $0.30 as well. It all depends on your strategy and goals you are trying to achieve.
How much should you spend on Amazon ads?
A good rule of thumb is to spend on Amazon PPC between 10%-15% of your sales. This also depends on your product profit margin. If your profit margin is 35% and you spend 15% on ads then your net profit from selling on Amazon is 20%.
If you sell a product that’s doing $30.000 a month. You could spend 10% on ads $3000 per month, $100 a day and still make 20% net profit. These numbers vary according to your profit margin, level of competition and click cost.
How to grow sales with Amazon PPC?
We are going to lay out some of the important things you can implement today and grow your sales on Amazon with PPC. We have spent nearly $200.000 with this brand on PPC on Amazon. We have actually spent a lot more because we have built a total of four brands on Amazon and spent nearly $500.000 on Amazon PPC.
We have made some mistakes but have also done a lot of things the right way. Here are the key things that we have learned:
You can’t sell a bad product with good PPC.
You can sell a good product with bad PPC.
Everything improves in time.
Sometimes it’s easier to raise your product price than trying to optimise your campaigns.
If you have a bad offer, high price, low rating, very competitive niche or all these things at the same time then it’s very difficult to sell your product even if you are an Amazon PPC superstar.
On the other hand if you have a very good offer, very good price and not a very competitive niche then you can sell your product with an average or even bad PPC management.
If you launch your PPC campaigns then you need to understand that first you need to spend money to get data. After your campaigns have run for some time you can close the losers and keep the winning campaigns.
Sometimes it’s easier to raise your price a bit than lowering your bids or decreasing budgets to get better profitability. It all depends on the product and the category.
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