Amazon advertising is one of the most frequently asked questions by newbie Amazon sellers.
Some sellers have already established their position in the offline market, but are having difficulties in Amazon operation because they need to learn how to implement online business strategies. Also, there are companies that have already entered Amazon for several years but are not getting satisfactory results.
Amazon ads are operated a little differently from other popular portal sites and eCommerce logic, so there are a few things you need to understand about Amazon ads before you start running them.
Based on the stories of clients we recently consulted with, we are providing guidelines for Amazon PPC advertisements.
■ How to Operate Amazon Advertising & Common Mistakes ■
Q1. How to choose keywords for Amazon PPC ads?
We can expose our products to frequently searched keywords through Amazon search ads.
A common mistake that newbie Amazon sellers make is choosing comprehensive keywords.
With simple item names like soap, printers, and dresses as advertising keywords, your ranking will drop and recovery will be difficult.
During the initial listing phase of your PPC campaign, it’s suggested to focus on a few keywords that are perfect for your product and refine them.
To improve your search engine rankings, we recommend using long-tail keywords that connect 4–5 keywords by applying the product’s function, size, specification, and capacity in detail and selecting words that don’t get used by your competitors.
Upon securing a certain amount of sales and reviews, you should broaden the scope of your ad keywords.
In order for Amazon ads to become successful, it can take as little as 2–3 months or as much as a year.
In the early stages of your Amazon presence, you need to invest not only money in advertising but also time to optimize it.
Q2. What metrics should I pay attention to when setting up Amazon Ads?
Conversion Rate is one of the most important metrics in Amazon advertising.
Because Amazon has a structure that exposes search results based on search engine algorithms, ranking evaluated by Amazon is very important.
Purchase conversion rate, sales history, purchase rating, and inventory are all factors that determine this ranking.
Therefore, if the probability of a purchase is low, even if many impressions and clicks are generated, the ranking may be lowered.
One client told us that its team entered keywords into Amazon several times a day and clicked on details pages to increase exposure.
However, it led to increased advertising costs and lower conversion rates, which was an operationally poor practice.
Q3. Amazon Advertising Budget, how much is enough?
Depending on the Amazon category, your advertising budget can typically be 30–40% of your revenue.
To establish their positions in the health and beauty categories, which have fierce competition, some early-stage companies invest bigger advertising expenses than their revenues.
It is important to note that just because you spend a lot of money on advertising does not mean that you will get a lot of exposure, but, as mentioned above, good ranking management will increase your chances of success.
Newbie Amazon sellers often believe that posting good listings will generate sales. However, success in Amazon selling is determined by many factors.
If you are a company interested in analyzing and reviewing your Amazon sales/advertising/inventory data or looking for improvements in Amazon operation, contact us at hello@overnodes.com for professional help.
