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Frequently Asked Questions

Does Amazon PPC really work?

In the last couple of years, Amazon has really developed its advertising platform so that Amazon sellers can leverage advertising to gain ranking for their products. You need to be covered with a couple of aspects for success on Amazon:
1️⃣ Your product needs to be a result of a thorough product research process – hopefully, before starting ads you already did different types of research.
2️⃣ Competitive price – your product offer should be attractive to your targeted audience and your prices should be competitive.
3️⃣ Product Reviews – The amount and quality of reviews play a big role in advertising performance. 
4️⃣ Healthy margin – your product needs to have a healthy margin in order to support the advertising cost without causing you a loss of money

Is Amazon PPC worth it?

Amazon PPC is a great tool to get your products ranked on the first page of Amazon  search results. However, expect it to take a big part of your marketing budget, if you are not careful you may end up with wasted spend without delivering the expected results. You can turn PPC to your own advantage by carefully choosing long tail keywords to use, and handpicking the right products to target in your strategy. This will help you gain better control over your own ad spend and make your campaigns more profitable.

How long does it take for Amazon PPC to work?

The time it takes for the first results on Amazon really depends on the campaign type you’re using, the daily budget you assigned to your campaigns, bids, and the competitiveness of the category you’re in. The more competitive the category – the faster your data collection is going to be. Same thing with daily campaign budgets.

How much does Amazon PPC cost?

Amazon’s advertising platform works on a pay-per-click basis. This means that you only pay for actual clicks that Amazon arranged to come to your listing. However, you get to determine the daily budget for each PPC campaign you created, and that cumulatively translates into a monthly ad spend that is charged to you by the end of each month. If your maximum daily budget is $1/day, then your monthly ad spend is going to be $30.
* Recently Amazon introduced vCPM (Cost per thousand viewable impressions”) basis. This means they charge an advertiser for an estimate of when their ad has been viewed by shoppers.

What is a good ACoS for Amazon PPC?

A good ACoS is the one you can handle without losing money. This is also called the “breakeven ACoS”. The calculation for a breakeven ACoS is very simple. Your target ACoS should equal your profit margins because then you know you’re not losing money on advertising. So, if your product’s profit margin is 35% then that is the maximum ACoS you can afford without losing money. We recommend that sellers who are in the product launch process will tolerate much higher ACoS for a long time, in order to help their product rank better organically on Amazon.

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