Pros and Cons of Running an Amazon PPC Campaign
PPC campaign services have proved to be some of the most vital tools, especially for those eCommerce retailers who are trying to boost their sales initially.
Amazon has started offering a wide range of advertising services to sellers, however, it can become a difficult space to navigate for newbies.
The most common type of advertising on Amazon is Sponsored Products, where sellers can increase their frequency of sales rapidly. It is considered to be a method where advertisers tend to pay for the potential clicks of the customers.
It really sounds simple enough, however, it is not, because if your strategy does not work out then you might end up losing more money. Nevertheless, Exploring its pros and cons can surely help you decide if it’s the correct option for your business.
Before we dive deeper into the metrics of Amazon PPC service, something which needs to be kept in mind is that it’s not an advanced platform as compared to other PPC options (i.e. Google, Bing, etc..).
Amazon’s PPC has a simplicity which makes it easy and ideal for the newcomers to learn how to gain sales by leveraging themselves towards it. However, it does require some investment of time and capital, so that you won’t risk losing your profits if you fail to implement it correctly.
A positive side of Amazon PPC Service is that any seller on Amazon is able to get great returns on investments if skills are leveraged correctly. You will be needing to work on your ads so that later the ads can work for you. Like all the other advertising platforms, the competition on the pricing and keywords increases with the popularity of the items.
So if you are an average person at playing the PPC game, there are chances that your competitors are going to have a great edge at finding better opportunities.
The art of learning how to bid smartly, managing budgets, and knowing when to outsource the advertising into the hands of an expert is the governing factor of running a successful PPC campaign.
PPC provides Immediate Visibility
Amazon PPC’s service has the ability to run and work instantly, and users will be able to see results as soon as the campaign goes live.
The product listings will be at the top pages of the search engine results page and we can hope for the conversions of the clicks into potential leads. If you are aiming to launch a new product on Amazon, it will take a considerable amount of time to gain organic traffic. However, you can give your listing an immediate boost with a PPC Campaign so that customers are able to locate you right away while you wait to climb up the Amazon Search Rankings.
This is also true for eCommerce stores that are trying to market their listings on social media platforms. They could have a hard time and a lot of competition while trying to grow organically, but boosting their posts with the paid ads will help them interact with many customers, while planning content for organic growth as well.
PPC is targeted with Tight Budget Control
Amazon PPC Service can maximise its effectiveness when clicks on advertisements are targeted. You have the freedom to segment your audience as much as you can so that you can assure that potential buyers reach your listings.
These days, PPC has hyper-focused advertisements which can have superior impacts on the audience. These advertisements have the ability to induce the need to buy the product in potential buyers. If your product contains all the parameters of Amazon Listing Optimization, then it is more likely to reach the right audience.
Nowadays, customers are becoming smarter because they have faced multiple failures when ordering products from Amazon. If your listing is targeted to the audience correctly and it contains all the correct information about the product, then there are minimum chances of failure.
You can set limits on your daily ad spend so that your Advertising Cost of Sales (ACoS) is as low as possible. It is possible that there are no limitations on minimum ad spend which makes PPC accessible and applicable on the business of all the sizes.
PPC bidding wars with no long-term advantages
We already know that PPC provides immediate visibility, but there is also the other side of the coin. Chances are that your influx of the leads on your Amazon Listings is going to drop as soon as your campaign stops.
For this reason, Amazon PPC is not considered to be a long term solution for many products. This is also why we recommend running a PPC campaign on Amazon in parallel with other digital marketing strategies.
In addition, while Amazon PPC might offer you tight budget control, it does not mean that bidding wars are out of the ordinary. In fact, when two or more competitors are targeting the same keywords, bidding wars start occurring more frequently. This is the reason why many sellers on Amazon failed to attract traffic and why they start spending lots of money on advertising.
Nonetheless, it is important to remember that competitions should always remain a secondary worry, with respect to the true goal of your product listing, which is to boost sales and revenue while keeping ACoS to minimum.
PPC and Organic Strategy
Running an Amazon PPC Campaign might be considered a short-term option, but when paired with a proper organic strategy it can bring free clicks, and get your products to appear in search results.
Always keep in mind that consumers are smart, and they can spot a sponsored listing. They understand that you are running a PPC campaign and they could potentially scroll past your products. This might cause fluctuation in leads, nonetheless, seeing your listing and your brand can help create a certain amount of brand recognition.
PPC can be a great way to bring in clicks and leads, however it must be combined with a well-rounded strategy, so that your product listings can gain organic rankings as well.
PPC should be combined with high-quality products
PPC is a great tool to get instant attention on the products you are selling, but don’t forget that your listing should have high-quality products that your clients will appreciate.
This is why choosing the right supplier is very important. You need a serious partner who will be able to run QC checks on your items, so that you can avoid complaints or bad reviews from your customers.
Our software allows you to purchase your items from some of the best Chinese Factories at B2B prices, and even request the private labelling of your products! Everything without having to deal with any stress related to language barriers, late email or misunderstandings with your suppliers.
Thanks to our software, you will be able to request your quotations independently and get an email notification when your quotes are ready.
So what are you waiting for?
BIOGRAPHY OF THE AUTHOR
Kamaljit Singh is the Founder and CEO of AMZ One Step and a former Amazon seller. Kamaljit has been featured in multiple Amazon podcasts, and YouTube channels. He has been organizing meetups all around Canada and the US. Kamaljit has over 250,000+ views on his Quora answers regarding Amazon FBA. Kamaljit also founded AMZ Meetup, where he organizes conferences for Amazon sellers.