Amazon ads are charged on CPC (cost per click basis). This means every time someone clicks on your sponsored product or sponsored brand ad, Amazon will charge you a CPC. This CPC is different across categories and changes as per the level of competition from other advertisers. We have CPCs as low as $0.02 for least competitive keywords ands products to as high as $15 for fiercely competitive ones.

While setting up an Amazon PPC campaign, Amazon shows suggested CPC bid for most of the keywords or product/category targeting you choose. So you could have an approximate idea of what your CPC is likely going to be. You could do this exercise yourself or ask your agency partner to provide you estimates and projections for your campaigns.

You can send a request for a Free Proposal with forecasts and budgets.

In order to manage Amazon PPC Advertising and make the best out of it the following is required:

• In-depth knowledge of how Amazon PPC Advertising works which includes ad formats, automatic and manual campaign types, targeting options, bidding strategies and more.
• Plenty of time to dedicate setting up campaigns, monitoring performings, optimizing bids, search terms and more.

When Should You Do It Yourself?

There are multiple scenarios when it makes sense to do it yourself, here are some we recommend:

• You are just starting out and you want to test the waters first.
• You want to play it ultra safe with your advertising budget
• Your margins are low (you shouldn’t do any advertising in this case)
• You have trust issues and it’s hard to trust an agency with your money
• You do not plan to grow your sales fast
• You are a control freak and you like to micromanage everything

When Should You Outsource?

We usually hear our clients say the following reasons why they decided to outsource Amazon PPC Advertising:

• They are busy growing their business so they don’t have time to do this themselves
• They tried doing it themselves and were overwhelmed by the time it takes
• Also, they ran into high ACoS and thought it was best to let an expert do this
• They are looking to grow their sales aggressively and crush the competition
• They have a private label and registered their brand with Amazon

Great, we are great match here. We like working with businesses like you and help your sales grow multifold.

The most important metric that tells you whether Amazon PPC advertising is working for you or not is ACoS (Advertising Cost of Sales).

If the ACoS on your campaigns is running above the target, you are losing money and you should stop advertising.

You would be however making money if ACoS is below your target. You should spend unlimited amount on advertising as long as the ACoS is below your target.

So how do you know your target ACoS? Well, first figure out your profit margin on your products. Your target ACoS should be below your profit margins. That said, you may have target ACoS for every product or range/category.

There are no guarantees. When you advertise on Amazon, you pay for the clicks not sales (conversions). In order to get the most sales out of the clicks on your product ads, there are multiple aspects that need to be efficiently managed.

Targeting to reach the right customers, optimal bids to get your ads there without burning a hole, and optimization of product listings to high the core benefits and unique selling propositions of your products to name a few.

Now you know why an specialist is needed to manage all this for you on the advertising side of things while you focus on sourcing your products, managing your orders and growing your business.

There are plenty of tools for Amazon PPC advertising, both free and paid. These tools can help you research keywords, suggest keywords, bids, monitor performance and some of the tools even offer automation of tasks.

None of these tools though can just take your products and deliver you sales. At their very best these tools are meant to make Amazon PPC management job easier.