3 Tips to Improve Amazon PPC and Increase Sales

Amazon is one of the world’s biggest online retailers, generating net sales of $136bn in 2016.

However, this popularity means it’s an incredibly competitive marketplace, with thousands upon thousands of businesses and individuals vying for customers’ money. Trying to get your products in front of buyers can seem a daunting challenge – if not flat-out impossible – to companies preparing to join Amazon.

Fortunately, Amazon Sponsored Products is an efficient PPC tool empowering sellers with the means to boost their sales. With such fierce competition, how can you improve your Amazon PPC and increase your revenue?

Here are 3 expert tips …

#1. Embrace the Power of Sonar

As with Google AdWords and other PPC platforms, Amazon Sponsored Products revolves around keywords.

The right keywords can mean all the difference between going unnoticed and climbing the sales charts. You must conduct comprehensive keyword research to maximize your Amazon PPC ads’ reach, to make sure you only bid on the most relevant keywords for your products. Investing in weak search terms can leave you out of pocket in more ways than one.

What can you do to make finding the perfect keywords easier? Embrace Sonar: Amazon’s native keyword tool. This enables you to choose the leading keywords (usually between 20 and 50 top options), and browse them by search volume.

You’re presented with a user-friendly visual breakdown of the top keywords’ performance, with search volume denoted by simple bars. All data informing Sonar is taken from Amazon customers’ genuine searches – so you know you’re spending your money wisely.

#2: Eliminate Costly Negative Keywords

Negative keywords can cost you money and waste time.

These are search terms similar to those you’re targeting, but apply to prospects looking for different products altogether. The best example of this is the difference between variations of ‘glasses’: sellers retailing eyeglasses will need to make sure they aren’t also targeting customers on the hunt for ‘wine glasses’ or ‘whiskey glasses’ too.

In this case, the seller would have to add those two irrelevant search terms to their negative keywords to avoid wasting money.

Think about each product, and list any keywords that might clash with others and potentially waste your valuable advertising budget. Keep an eye on your keywords generating the least conversions, and add them to your list of negative keywords too. Over time, you can eliminate under-performing terms and invest more in the strongest.

#3. Focus on your ACoS and Bids

Over time, you have to make sure your target ACoS (Average Cost of Sale) balances with your actual ACoS to avoid spending more than you’re making. There are steps you can take to optimize your ACoS and keep your profit margin healthy.

If the actual ACoS exceeds your target figure, reduce your bid on ads; this can help you discover whether or not you can spend less without impacting your sales. On the other hand, an actual Average Cost of Sale below your target figure leaves you with more money to play with, so think about increasing your bids for a wider reach. Channeling more disposable funds into one area can bring the respective ads to a larger audience.

Any products which fail to attract more sales, despite having the strongest keywords possible, should be given a higher bid. This will reveal whether the problem lies with the product itself or your current bid amount.

Want to know more about using the Amazon Sponsored Products tool to promote your products and increase sales? Give Shalmie a call or drop us an email!