What Is PPC Amazon Actions and How It Works

written by Carlos Alvarez
6 · 09 · 22

If you are an Amazon seller trying to up your game, there’s no way you haven’t heard of PPC (pay per click) marketing! But if you have not or you happened to just find this article, then we highly suggest you keep reading, but only if you want to make the best of your Amazon business.

What is PPC Marketing

PPC marketing, also known as Pay Per Click marketing, is the newest and next best way to transform the revenue from your Amazon business from just okay, to profitable. PPC marketing can also be identified as sponsored ads. With this type of advertising, the advertiser only pays Amazon when one of their ads is clicked. A well-managed and optimized PPC campaign can greatly increase product visibility and sales. This will also improve the product’s organic rating, assuring its long-term viability.

How Does It Work

Theprocessesin which PPC marketing works may sound confusing at first but once you understand it, you will see that it’s actually very simple. In the PPC action process each advertiser submits a default bid and competes for ad space with other advertisers. However, the top bidder’s bid does not always equal the cost-per-click. For example, if you were to bid $4.00 for a keyword, while other bidders have only bid $2.00. You will win the bid for that keyword but that doesn’t mean you have to pay $4.00. All you have to do is pay $0.01 more than the bidder in second place. And this means that in the end, you will be paying $2.01 instead of $4.00. Sounds like such a sweet deal and that’s because it is! This means that the highest bid will determine the cost-per-click for that keyword.

Why You Should Start Using Amazon PPC

The beautiful thing is that because Amazon is a retail platform, consumers who enter any search intend to buy something. It’s also important to take into account that Amazon is constantly gaining new users every day. Especially within the past few years, Amazon has started to become most people’s preferred way of shopping! And why wouldn’t it be? Amazon has a captive consumer base that appears to be growing in size year after year. This means that When a PPC campaign is properly executed, money can be made because of the huge audience that is being targeted.

When is The Perfect Time to Launch My Own PPC?

Typically, the best thing to do is to launch your PPC as soon as you have a new listing. When you launch your PPC as soon as possible it becomes easier to collect the needed data that you need to successfully run that and future PPCs. It’s also challenging to obtain attention early in the product life cycle, and PPCs can help with that.

The Final Takeaway

Since Amazon has proven to be the preferred method of shopping amongst the population, it’s best to maximize a PPC strategy sooner than later. Read our other posts here.

Carlos Alvarez

Alvarez sums up his mission to help online sellers with a quote he heard early on in his career. New sellers constantly compare their Chapter 1 to another seller’s Chapter 20. They see what other veteran sellers are doing and they judge their success and failures by this benchmark. His goal is to show sellers a realistic path to success, and how they can enjoy every chapter of their own, unique journey.

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