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Amazon PPC: What You Need to Know 

Ever wonder why your listings do not perform the way you expect them to? After a comprehensive content optimization, it seems like something else is still missing. Perhaps it lacks that extra push? Something to boost your product and maximize its visibility. 

Well, you’re on the right page, in this article, we’ll introduce you to Amazon PPC and how to get it right. Amazon Advertising’s PPC or pay-per-click advertising is a way of marketing advertisements in which you’ll only pay when the ad actually works or when users click your ad. One way to increase your sales, user traffic, and brand awareness. 

With Amazon being one of the most popular advertising platforms, together with Google and Meta, taking advantage of Amazon PPC is an excellent way to improve your brand positioning.  

How Amazon PPC works 

Amazon PPC uses bidding to decide which ads get shown, but it’s not the usual bidding system because it uses a second-price auction. It means even if you get the winning bid, you don’t actually have to pay your bid, you have to pay the second-highest bid. 

For example, suppose an Amazon user searches for “inverter generators”. In that case, Amazon will compile all the relevant ads that target the keyword. Once the ads are collected, Amazon will show the highest bidder’s ad. However, since it hasn’t been clicked, the bidder won’t be charged yet. 

When the Amazon user clicks on the ad, the advertisers will pay the price amounting to the second-highest bid plus $0.01. So, if the highest bidder puts up $8, and the second-highest only bids $6, the payable amount is $6.01 since it’s the second-highest bid.  

The price per click 

The price of using Amazon Advertising highly varies, as it can change depending on many factors, such as ad types, budget, bids per keyword, and ad targeting type. Depending on your campaign, it’s up to you to decide how much you want to spend per day. 

Amazon PPC is not about dumping a lot of money into it and expecting it to work. Even if you spend a lot, if the campaign isn’t profitable, it will end up being a loss on your books.  

But, generally, pay-per-click cost ranges from $0.02 to $3, with the average rate being $0.77 per click. Still, it highly depends on the factors we stated above. 

Amazon PPC can help your brand grow and your sales increase 

If you can do a successful Amazon PPC campaign, you can definitely improve brand awareness and see an increase in sales, which are both vital for any business no matter the industry you’re in.  

However, if you’re new to PPC, you need to understand that it’s not something that you can invest in just once and expect immediate results. Using Amazon PPC to advertise your products requires proper planning and execution. There are many strategies you can try depending on your goals and budget. 

With consumer shopping moving to e-commerce — where Amazon is the most popular platform — there’s a lot of incentive in managing your advertising campaign. But, since there are a lot of gains to be made in e-commerce, the market is also highly competitive.  

If you’re on the lookout for a partner, you’re in the right hands with Generation eCom. Let’s plot your Amazon PPC strategy together with our team of experts. For more details, shoot us a message at ericpaul@generationecom.com or book a consultation on our website.