If created and managed properly, an Amazon Pay-Per-Click (PPC) campaign on Amazon can help you sell more products faster, while increasing your organic rankings.

On top of that, Amazon’s sponsored ads program is pretty simplistic, especially considering the amount of developers Amazon hires every year …

However, the simplicity of Amazon’s advertising platform is a double-edged sword. But let’s try to reap the benefits for our amazon FBA products.

How does Amazon Paid Search work?

Let’s start at the beginning.  Let’s break down exactly what paid Amazon search is and what it looks like.

First, Amazon receives millions of searches each month.

Second, the majority of these searches are phrases, long tail, which means that consumers use three or more keywords to search. They know what they want.

Users go to Amazon and grab the product of their choice. From there, Amazon’s search engine returns the products it deems most likely to satisfy the user’s desire. These are the “organic” results.

What interests us in this article  the “paid” search results.

Creating Amazon PPC campaign is a very simple process. However, it is important to understand the strategy and important steps before you start advertising.

The last thing we want to do is to make quick decisions that could impact our campaigns!

Here is a brief overview of how we are going to conduct these PPC campaigns:

  1. Launch campaigns to find profitable keywords that convert into sales.
  2. Remove non-converting keywords.
  3. Increase bids for high-performing keywords.

Before we go any further, let’s familiarize ourselves with Amazon’s key metrics. This is how Amazon describes each of them:

  • ACOS – Advertising Cost of Sales:

Percentage of sales allocated spent on advertising. This is calculated by dividing the total advertising expenses by the allocated sales. For example, if you spent 4€ on advertising for 20€ allocated sales, your ACOS would be 20% (i.e. 4€ / 20€ = 0,20).

  • Sales allocated:

The total product sales generated in the week following clicks on your ads. It may take up to 48 hours to enter your sales data. Therefore, sales data is not available in the “Today” date range and may be carried over to the “Yesterday” date range. You can view individual sales totals for advertised and other products in the campaign performance report.

  • Impressions:

The number of times your ads have been displayed.

  • Clicks:

The number of times your ads have been clicked.

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