If you’re just starting out as an online seller, the concept of advertising on Amazon can be daunting. In fact, according to WorldFirst’s Voice of Online Sellers report, 33 percent of respondents claimed that marketplace advertising was their fourth most significant challenge in running their online business.
With this in mind, we have looked at what you need to know to grow your sales through Amazon’s marketing tools.
1. Keep across important Amazon updates
Firstly, keep your eye on important announcements from Amazon that may affect how you use their marketplace.
In September 2018, Amazon announced a restructuring of its ad business. Amazon Media Group, Amazon Marketing Services and Amazon Advertising Platform have consolidated to form one marketplace called Amazon Advertising.
What does this mean for you?
- Advertisers on Seller Central (Sellers selling products to Amazon customers) and Vendor Central (Merchants selling to Amazon) will have an easier time managing and reporting ad campaigns.
- This accessibility will invite more advertisers to hop on the bandwagon. Like any advertising marketplace, the popularity can only encourage higher pricing and stronger competition. However, Amazon remains the go-to marketplace for online sellers looking to scale their business.
2. Consider the key reasons to advertise on Amazon
There are two key reasons to start on advertising on Amazon.
- Increase traffic and sales
Amazon customers are buyers, not browsers. Some reports state that up to 90% of searches on Amazon end with a purchase, which has resulted in advertisers shifting budget from platforms like Google and Facebook to Amazon. This means you should be well positioned to sell your inventory faster.
- Improve your organic rankings
You’ve got a great online store (competitive price, relevant keywords, product images and product availability are optimized), but few buyers know about it. Paid traffic is a quick alternative to drive traffic to your listing. Short term, you can aim for more sales and reviews. Long term, you can hope to improve your organic ranking in Amazon.
3. Know the correct terminology
Search Engine Optimization (SEO) – SEO looks at where your listing organically ranks in a particular search query. The goal for any business is to improve their organic ranking through SEO tactics, like improving ad copy, increasing reviews, growing traffic and basically making your product listing as relevant as possible to the search query.
Pay-per-click (PPC) – PPC advertising is when ads are displayed at no cost until a potential buyer clicks into the ad. Amazon uses a PPC advertising approach. Advertisers will only pay when a potential buyer clicks on the advertiser’s ad.
Search Engine Results Pages (SERP) – The list of products that appear following a search.
Click Through Rate (CTR) – The impressions (people who see your advertisement) divided by the number of clicks. The higher, the better!
Traffic – Clicks to your listing.
Return On Investment (ROI) – How many dollars you make back in sales for every dollar you spend on advertising.
4. Review options for advertising on Amazon
There are various options when it comes to advertising on Amazon. Check out our downloadable guide below for more information.
5. Launch your ad campaign
From selecting the ad type to choosing your targeting, Amazon has created a helpful video on setting up your first advertising campaign:
AMAZON AND WORLDFIRST
WorldFirst can open local currency receiving accounts for the countries you’re selling in. These accounts can be added to Amazon Seller Central and means you’ll be able to receive better exchange rates when repatriating your international Amazon sales revenue and make transfers at times that suit you.
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