Understanding Amazon PPC

 I know what you’re thinking – great, another acronym; just what we need!  Although I can sympathise with those struggling to separate their SEOs from their CPL, Amazon’s PPC is three little letters worth remembering.

Pay Per Click (PPC) is a form of advertising whereby the advertiser pays only when a potential customer clicks onto their advert and through to their website.

In a nutshell, PPC is a way of buying visits to your site and it allows advertisers to control their advertising spend.

How does it work?

Online sellers create an advert on Amazon and then bid a specific amount of money to be spent per click – for example, you’ve just set up an advert for your funky phone cases and you might bid £0.20 per click.  How much you bid per click depends on the value of your product and the forecasted number of buyers.  If you’re selling a low cost item such as a £3 book, you’ll want to keep your bids low, however, if you’re selling a £1000 camera, then it’s worth pumping up your bid for higher rewards.

Once your advert is up and running, you pay the specified bid amount every time somebody clicks onto your advert, regardless of whether that person then goes on to purchase from your site.

The lingo

Impressions:  The number of impressions received is the estimated number of people who have seen your advert

Clicks:  This is the number of people who, having seen your advert, have then clicked onto it in order to visit your page or site.

ACoS:  Advertising Cost of Sale is the cost per conversion for your product  This is worked out by taking your cost (including the cost of the product, fees and miscellaneous charges) and offsetting these against your advertising spend.  This is used to make sure that your not spending more on advertising than you can afford.

An Amazon PPC campaign is a great way to help you increase traffic to your site, improve your ranking and sell more products.  Focus on your keywords to supersize your SEO and you can become a master of PPC.