Selling on Amazon is becoming more costly as the competition increases and the dependance on the Amazon ad platform increases.
Why do I need to use Amazon PPC advertising?
There are only so many spots on pages when you search and (depending on your search parameters) 5 to 6 of the spots are ads.
So when you sell on Amazon you need to be using the Amazon ads platform, as even when you are successfully ranked organically, you need to be advertising and keeping your competition out of the top spots ad to also grow your own product, brand and add sales.
Think of it as, if a potential customer searches for a search term and then sees your product twice within the first 3-5 products, organically and as a sponsored ad, then they will naturally be drawn towards looking at your product page. This has therefore doubled your chances of being clicked on and seen by customers.
For those thinking of turning off ads when they get to a high position, this is something that we do not recommend. When people talk about this we always say, that look at the big brands, Coca-Cola doesn’t stop ads, when it is number 1? Now you may say, “they have a big budget” however they are advertising the brand, as are many big brands and we feel that this is because whatever size you are advertising the Brand and your products in the right way, is the way to get the customers attention, if you are number one that means you are doing something right but doesn’t mean you should stop advertising.
So we know that using the Amazon ads platform is quite important and if you sell on Amazon, pretty much a necessity.
We can therefore move onto the important point of how do I do this in a cost effective way, without spending huge amounts of money on PPC and actually get some sales and returns for this.
Thank fully, we have been working on Amazon PPC for about 2 years now and finally can say that we have a strategy that works and is proven and is easy too implement, if you have the right tools.
So first, you need to get the right tools.
If you are just starting out and have only one or two products to manage, there is no real need to do this, however it will supercharge your advertising and speed up the results, though it is not necessary to have a PPC management tool.
If however you are a larger seller with 5 or more products, have good rankings and even may have some decent PPC and are looking to reduce ACOS and improve sales, whilst growing further, this is perfect for you and we recommend you get a PPC management tool now.
They have also recently released PAT campaigns, which tie into your product range, so that you can have a separate campaign running for attacking competitor products (ASIN targeting) and defending your other products within your brand / product range. So this is also geared towards the Private Label sellers who are looking to grow their Brand and products and build a customer base, who will be loyal and excited by the brand in future.
So how does this help reduce spend, increase sales and decrease ACOS?
First a PPC management tool will be able to decrease the spend of your campaigns, as it will (over the first 2-3 weeks) bring you cheaper clicks, as it will manage the CPC constantly to find the lowest CPC that works and gets clicks and more importantly sales.
The software will also stop any high cost terms / KWs. So the software identifies them and pauses them if it is spending too much against your budget, that you have set. This together means that your average CPC will go down and CTR and CPC are two of the most important indicators of a successful campaign in Amazon and a tool like Zon.Tools will manage the CPC and bring it to a lower average position for each campaign.
This reduces CPC and overall cost of your campaigns, getting you clicks for less and providing your listing is optimised, sales.
Getting more clicks will increase your click through rate as well, which will increase the campaign score within Amazon, so Amazon will rank your campaign as more successful and this will actually help your sponsored posts to rank better (part of Amazons algorithm for positioning your sponsored product) as well as maintaining a high CTR, low CPC and this will result in more sales and therefore a lower ACOS.
This will come naturally as a result from using a software like ZON.TOOLS which you can check out here.
So if you are looking to reduce your spend, increase your sales and ROI on Amazon, then this is the place to start. Check out what else Zon Tools can do for you.
If you need any further assistance with your Amazon PPC and getting started, we also have the ability to help you out, set you up in Zon Tools and get you started on the path to profitable Amazon campaigns… CONTACT US HERE