Why advertise on Amazon with Sponsored Products Campaigns?

Listing on Amazon and selling on Amazon with the FBA is a path that opens the door to a global market. Here, it is easier to make yourself known, if your product is good and you are convinced that it can get four or five star reviews.

It would be preferable to get as many „five-star” reviews as possible, even if sometimes there will be dissatisfied customers. Obviously, no matter how good a product is, it cannot meet all the requirements of its customers. However, even a negative review becomes a constructive one!

So, you listed your product on Amazon, but you have no orders. Your competitors have orders and advertising at least with Sponsored Products Campaigns. Your competitors are on the front page, because they use large sums when it comes to paid promotion. So, don’t think that your competition doesn’t invest money in paid advertising on Amazon, and especially with Sponsored Products, but I assure you that they sometimes invest even $1 for a customer’s click! Yes, I know it’s a lot, and that dollar may be lost because, that customer will not buy!

But your competition has probably been on the market for a long time, and can afford to spend $ 1,000 or even $ 10,000 a month for advertising. Sometimes these costs are hidden in the price of the product, other times, your competition can afford to lose significant money for advertising, because some of the customers obtained from advertising, will remain customers in the medium – long term and will later make organic purchases of products purchased through advertising. And these customers will also recommend your products to other known people.

Why Amazon Sponsored Products Campaigns?

As I said before, if you have listed your product on Amazon, you need advertising, the advantage is that you can start with a small monthly budget and that will bring you the first sales and maybe the first reviews. And, from here, your sales will start to grow, of course, some products sell better in January, others sell better in August. So, you don’t have to expect to earn the same amount of money every month, there are less good months and some better months. There is a fluctuation, there has always been!

On Amazon, you can set up a Sponsored Products campaign with a small budget for 30 days and a small bid. Of course, a small „BID” will not bring you many customers in a month, but at least you become visible among the multitude of products on Amazon and customers start to know you. And as I said above, it is possible to get the first reviews.

On the other hand, if you use a large BID, you will be at the top of search results next to your competitors, more than likely you will spend a lot of money on advertising, and if you manage to hide the additional costs in the price of the product, that price it is better to be close to your competition, and you may make a profit, faster than you expected.

The recommendation would be to use an average „BID”, which you can adjust weekly based on the ROAS you get. Also, even if you use a small BIDs, is better to setup a bigger daily budget, because Amazon will give you a better priority.

Find the top keywords for your product!

You also need to look for the top keywords that your competitors use, for example, „sunflower oil”, this keyword obviously sells sunflower oil, and the stakes on this keyword are high, so at the beginning it’s It’s a good idea not to bid too much on this words, I’d say half of what Amazon recommends, and in the meantime adjust the negative words (for automated campaigns) that bring you spending, not sales.

In addition, you should know that Amazon will help you find the top keywords for your products, so not only will you have not to stop at the example above, but you will also need to look for your competitors, for example, a key word would be also „Flora sunflower oil”. In this particular case, Flora is a brand of sunflower oil that is sold on Amazon UK and which oil is your „competitor”. And from this, other keywords derive, „Flora Oil”. Customers accustomed to Flora Sunflower Oil will also be looking directly for Flora Oil, so this combination of keywords on Amazon is to your advantage, but it’s not necessarily a top one, which brings you a lot of sales. Because over time, you’ll need to measure the keywords that drive you the most sales, and you’ll need to adjust your „BIDs” to fit your budget. As I said, a big „BID” brings you big sales, and a small one brings you small sales, but with a low conversion payment.

Remember, the top keywords for your products will always sell the most, the rest of the keywords are just complementary!

Of course, these are some scenarios, the sure ones, is that after listing a product on Amazon, you need reviews and advertising, these two points you can not ignore if you want to have sales on Amazon.

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