Amazon Sponsored Products
Many retailers use the online mail-order site Amazon (FBM/FBA) to sell their own products. With Amazon Sponsored Products (PPC advertising), retailers can better place their products, thus increasing sales.
The service is very easy and quick to learn. Die Bedienung ist sehr einfach und schnell zu erlernen. You’ll find out here how Amazon Sponsored Products can work for you.
Visibility on Amazon is one of the most important requirements for increasing your sales. Targeted advertising lets you call certain products into focus, helping customers with searching and buying.
But using this tool requires that the seller has a profesional seller account on Amazon.
Why are there Amazon Sponsored Products and what do you have from them?
The Amazon Sponsored Products tool lets you visually set your products apart from the competition. More than 20,000 sellers are already using this in Europe. Using the tool offers you several advantages.
Your ads are conspicuously displayed next to search results
Your chances of appearing on the first page of search results increases. All you have to do is price the item competitively.
Your product won’t be seen by anyone except potential buyers
With targeted search queries, Amazon inserts Amazon Sponsored Products with the most relevant product ads. Targeted queries on Amazon normally have good chances for closing a sale.
Pay-per-Click – Costs only accrue for Amazon Sponsored Products if customers actually click on them
The display insertion itself doesn’t cost you anything. You are only charged when customers click on your ads. This is known as Pay-per-Click, or PPC for short.
Your success is in your hands with Amazon Sponsored Products
Amazon offers you the chance to control your Amazon ad spending. Switching on ads is done by means of keywords. You can view in your account how many customers your keywords attract, as well as your rate of return per Euro.
Amazon’s entire market is available to you
If you offer an internationally competitive product, you can highlight that product with Amazon Sponsored Products on all Amazon marketplaces worldwide.
Amazon advertising doesn’t just work on a computer
Many Amazon customers use smartphones or tablets when shopping, and the Amazon Sponsored Products tool takes this into account. Your product is always visually highlighted no matter which device customers are using. That ensures that you are always highly visible to customers.
Pricing is simple and flexible with Amazon Sponsored Products
Amazon Sponsored Products give you the ability to establish your own budget. Costs are calculated by PPC, not traffic. Your cost is limited to the amount of your highest offer.
Amazon PPC requires no activation or registration fees
You can get started right away with Amazon PPC Pay-per-Click. Since there are no registration or activation fees, or costs for traffic, you only start paying when interested customers start clicking.
How do Amazon Sponsored Products work?
First you’ll select the products you want to highlight using Amazon ads. In choosing suitable keywords, Amazon Sponsored Products offer you a number of suggestions. You can accept these suggestions or replace them with your own keywords. After that you’ll enter the maximum cost per click. The CPC is calculated and billed for each click. You can place your advertising in different places on Amazon, including coveted positions such as at the top with the search results and on the product detail page.
Individual steps of use
In less than five minutes, you signed up for Amazon Sponsored Products. The tool is available in five European marketplaces from Amazon. You are free to sell your product on one or all five marketplaces.
Amazon honors your entry with a $ 25 credit when you first join Amazon Sponsored Products. The amount will be credited to your Promoted Products Seller Central account.
This is how billing works
As mentioned earlier, the business model works on pay-per-click (PPC). A similar model may be familiar to you from Google Adwords. As long as a customer only looks around the site, there are no costs for you. Only when he specifically clicks on your advertising, you will be charged by clicking a fee.
Is the advertisement always visible?
No. The ad will only be visible when one of the keywords is entered in the Amazon search box. It is therefore in the hands of the trader to use the keywords to control his Amazon advertising accordingly.
CPC or PPC – what exactly is behind it
Pay per click or cost per click, simply PPC or CPC, come from the English-speaking world. Because of the simple abbreviations and lack of a suitable expression in German-speaking countries, the terms have prevailed in this country. Translated into German, pay-per-click means “pay or cost to click”.
Pay-per-click or PPC has developed in the area of online marketing. Websites are provided with banner ads. For example, on a long-distance travel blog, you’ll find airline or airline search engines. These banner ads are operated by companies. Once a customer has become aware of the advertising, there are no costs. Only when he clicks on the banner and is forwarded to the side of the company, costs arise. Behind the system are various ways to operate marketing. Advertising banners can be placed on search engines, blogs, private homepages or company pages. Amazon PPC is based on the same principle.
Who determines in which position the advertisement appears
Again, the dealer has the opportunity to influence. For the product to appear, the product must be considered relevant to the keyword. This happens because the keyword is included in the product name, for example. Another requirement is that the product is in the Buybox. If these two conditions are fulfilled, the advertisement can be switched.
If the keyword is relevant to multiple ads, they are in competition with each other for placement of positions. To solve this conflict, Amazon takes an auction that decides on the ranking. Two factors have a significant impact on this auction.
The click price. With the click price of Amazon PPC, merchants determine how much they are willing to pay for a click. In the competitive ad auction, the one where the click price is higher will go up. Traders can thus intervene to guide. If the quality is very high, however, the advertisement can be ranked upwards even with a low click price.
What does Amazon Advertising cost?
Amazon PPC does not cost the world. Amazon itself gives the average click price of 10 eurocents. However, depending on the category, the click price must be set higher if the advertisement is to be displayed in the upper area.
The click price is not always the price that is actually paid. It’s just the maximum price. In fact, the price required to place the product ahead of the competition is paid.
What else influences the click price?
The number of competitors and the keywords have a big impact on the actually charged click price. The kick price can be high, especially for popular keywords. Here, a balance must be made as to whether it is worthwhile to compete with the product. The answer to this question also depends on how much revenue the ad generates. Alternatively, this product can also be placed without advertising.
Create ads
You can easily create Amazon ads. To do this, go to the Seller Central Account’s menu item Advertising and from there to Top Navigation. After setting up the payment method, you can create advertising for your products.
Basic requirements:
- An active account for professional sellers
- The possibility to supply all addresses in Germany
- A valid credit card
- Product offers in at least one of the available categories. The products must be new.
- The offers are eligible for placement in the shopping cart field.
Sponsored Products is available in the following categories:
Auto, baby, DIY, lighting, apparel, office supplies & stationery, computers & accessories, drugstore products, large electronics, electronics & photo, videos & TV, games, garden, pets, camera & photo, Klassik, kitchen & household, food & beverage, motorcycle, music, musical instruments & DJ equipment, perfume & cosmetics, jewelry, shoes & handbags, software, toys, sports & leisure, clocks, industry & scientific
Not permitted as Sponsored Products:
Pharmacy-only medicines, nutritional and weight-loss supplements, medical devices, religious or spiritualist products, political products or products connected to a political party, bonus/loyalty cards, customer cards or other loyalty products, weapons (handguns) or parts of weapons, construction kits for weapons and munitions, hazardous or illegal products, counterfeit products, decryption devices or fireworks, pornography, products for sexual enhancement and all other adult products, illegal drugs, accessories for drugs or their use, products for passing drug tests, tobacco and accessories for tobacco products, products which harm, or enable or promote the harm, of intellectual property or personal rights, acupuncture products and accessories, used items, all services.