Stepping Up Your Amazon Business

Anyone running an online business needs to consider the benefits of selling and advertising on Amazon. In addition to being the world’s largest online retailer, Amazon has a whole ecosphere designed to keep shoppers engaged and shopping on the platform.

Amazon delivery boxes

There are benefits to selling at Amazon compared to other platforms, but there are considerations that advertisers need to be aware of, specific laws and regulations in other countries that may be different. A quick review of those laws to be compliant and considering outsourcing specific considerations like an Amazon importer of record to protect inventory and from potential liability are necessary.

Why You Need to Sell on Amazon

The benefits of selling on Amazon as opposed to other search engines like Google and Bing, Amazon’s algorithm is developed for people further in the sales funnel. The sales funnel is the stage of the buying process, one that goes from introduction to execution of the sale.

This means that the platform is an excellent way for advertisers to get brand awareness and sales if a campaign is done correctly. To set up an effective Amazon campaign and to increase sales as a byproduct, there are a few things that advertisers need to understand about the platform and search engine algorithm.

Understanding Amazon’s Marketplace

It’s not hyperbole to say that you’re missing out on a huge opportunity if you’re selling online and not effectively selling through Amazon. Unlike other platforms, people on Amazon’s platform are at the final stage of the shopping and buying decision-making process.

Anyone in sales knows the grind of finding new potential customers, the challenges of educating them, and then persuading them to make the sale. With Amazon, customers are looking to make a purchase. However, they just may want to compare prices, shipping options or get a little more information before finalizing the purchase.

Because of the buyer’s journey stage, advertisers have a significant advantage on the Amazon platform than on other websites, so the type of ad campaign and optimizing it is crucial for success. In other words, Amazon brings shoppers and vendors together, and the key is to improve the placement of the product being advertised.

Benefits of Amazon’s PPC Campaigns

There are options for advertisers on the Amazon platform from Pay-Per-Click (PPC), Sponsored Products, Sponsored Brands, and Sponsored Display Ads. Additionally, reviews are the lifeblood for online advertisers, so getting tons of positive reviews will boost your product during searches.

These options give advertisers multiple channels and ways to reach buyers that are looking to make a purchase. This advantages the advertiser that knows how to optimize their product reviews page, keywords they use in their search and product terms, and find and secure great reviews.

Types of Advertising on Amazon

There are four primary areas of advertising to consider. Still, before you throw any money into your campaign, it’s important to understand the primary difference between advertising on Amazon and other search engines.

There are some best practices to help avoid costly Amazon advertising mistakes such as keyword research. However, understanding the platform itself is crucial for advertisers to find success.

Pay-Per-Click on Amazon

The primary way that PPC campaigns operate on Amazon is in an auction format. In traditional PPC formats, an advertiser researches a keyword or phrase and pays a price for those words, which may fluctuate based on popularity.

An advertiser bids on critical terms with the Amazon auction-style and only pays for the accepted price. For instance, an advertiser bids on a term and pays only $0.01 more than the next highest bidder, making the price fixed. A fixed price makes it easier for advertisers to budget as well as predict the total usage of the terms involved.

Sponsored Products

With sponsored products, advertisers are able to have their products highlighted in banner-type ads on search results pages. That brings it immediately to the customer’s attention, increasing their chances of purchasing it.

Sponsored Brands

This PPC ad allows the vendor to craft ads to their brand. It accomplishes this by using customized headlines, brand logos, and a maximum of three unique products associated with the brand to advertise.

Sponsored Display Ads

This ad type drives searchers to a specific Amazon detail page or can be used within the Amazon platform or on external websites. Its effectiveness, however, can vary.

Understanding the advantages of selling on Amazon and understanding the various strategies to advertise on the platform should allow you to step up your Amazon business to grow your brand and increase your sales.


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