Amazon Sponsored Products: The Sellers Guide

Amazon namely one of the largest marketplaces provides enormous opportunities to sell your products. With its large customer base, it’s evident that Amazon happens to be one of the most popular and preferred places for online shopping.

With a modest start, Amazon has grown significantly to capture and create a wide online presence. Amazon has over 150 million mobile users and about 103 million Amazon prime subscribers.Amazon Total Products

Courtesy: Oberlo.com

Amazon has over 2.5 million active sellers, with almost 25K sellers having sales over $1 million and around 2 Lakh sellers having over $100000 sales.Several users admit browsing through multiple products category before making a purchase.

So here is a good reason why you should consider Amazon to sell your products if you haven’t explored this so far.

You might also be interested in the following articles:

Best-Selling Products on Amazon in 2020
How to sell products on Amazon
How to Market Products on Amazon
Amazon Pricing Strategies for Merchants

However, is it just enough to have your presence in Amazon marketplace. Being a seller over here does give you business opportunities. But the question is does that suffice to increase your sales substantially?

Amazon has several sellers, several users, and multiple buyers but if you are selling your products on Amazon you certainly do not want to seem like a drop in the ocean. So how do you remain ahead of your competition and use Amazon to your advantage?

This is exactly the reason why you should consider “Amazon Sponsored Products”. Let’s understand this better by knowing what Amazon Sponsored Products are.

Amazon Sponsored Products

Amazon provides a feature called Amazon sponsored products using which your products get displayed on relevant searches. Amazon helps customers to discover your products that are being sold on Amazon.

Such sponsored product Ads appear on search results as well on product pages. This gives the seller an added advantage to showcase their products better and in turn see an increase in sales. The sponsored products feature can be availed at separate pricing which we will cover in more detail later.

Amazon Sponsored Ads are easy to setup and get started. This lets you increase your product visibility whereby you can reach more shoppers. All this will naturally be resulting in an increase in sales. Click To Tweet

So how does an Amazon sponsored product Ad look like?

When you use Amazon, you will start noticing that you can find sponsored Ads everywhere over the website.sponsored Ads

Why you Should Use Amazon Sponsored Products?

If you are a seller on Amazon, then the first thing you would think about is setting up your product catalog. Create a listing that viewers would like to buy. You build a strategy to improve your sales and focus on building your shipping. Next, you place competitive pricing for your products.

This all works well, and you may even get new customers. However, as time progresses how do you ensure your sales does not hit a plateau?

This is a typical scenario that most sellers experience. Beyond a certain point, it gets hard to keep up the pace and not see a dip in sales. This is one of the biggest concerns of most Amazon sellers. The challenge is to be found amongst your pool of sellers and yet make a profit on each sale.

Not just Amazon, but Google shopping Ads, Facebook Ads, Bing Product Ads all these support sponsored Ads. So why should you think about Amazon sponsored products first when there are others?

Amazon is one of the top-rated places where users search for existing as well as new products. Using a sponsored Ad in Amazon gives your products a higher chance of being found. Amazon leads the way when we speak about sponsored products.

On a normal organic search over Amazon, you would find only the –

  1. Thumbnail
  2. Title
  3. Price
  4. Seller Rating

However, for sponsored products you would also see a Sponsored icon to indicate its part of the Amazon Sponsored Product features.Sponsored icon

Amazon sponsored products help sellers in more than one way. Some of the benefits of using this is:

  1. Amazon sponsored products lets your products easily show up on searches. Gives better visibility to your products especially when you have dense competitors.The easier choice to increase your sales
  2. A seller can use sponsored products to quickly clear the inventory or end of season sale. If used during specific peak shopping periods such as Black Friday, Christmas, New Year eve, sponsored products can see a drastic increase in sales.
  3. Most small businesses and newer brands find it difficult to establish their brand in the market. Similarly, if you own a well-known brand but have a new product to launch then using sponsored product features of Amazon is a great way to let customers know about your brand.

How does Amazon sponsored products work?

Amazon shows sponsored products on the below two pages:

  1. Search result page
  2. Product page

Below are how sponsored products appear in the search result page. For instance, for a search on – iPhone, you will find few organic results included, with these you will also find the sponsored products as shown below.Sponsored products appear in the search result page

Below are how sponsored products will appear on the products page. This is shown at the bottom of the same page.Sponsored products will appearon the products page

To get started a seller would have to sign up to Amazon if not done so. The Amazon sponsored product features have a monthly subscription fee of $39.99. Along with this, there is a selling fee. Monthly subscription fee of $39.99

You pay only when your ads are clicked. This can be controlled by the seller where the seller decides the budget and chooses how much to bid per click. The sponsored products are available for professional sellers, kindle direct publishing authors, and vendors.

As a first step,you will have to choose some of your products that you wish to categorize as Amazon sponsored products. These Ads are usually displayed at the very top, along-side, product pages or search results. These Ads appear on both mobile as well as desktop.

The next step is to choose a maximum amount that you are willing to pay when a user clicks on your Ad. This is a competitive bid and the higher the amount, its more likely to be displayed on a user’s search result.

So, if you are selling shoes and a user searches for shoes, then your sponsored Ad will be displayed based on the bid. Along with this, you choose the keyword that you would want to target. To start with you can choose a small bid and fine-tune the performance of your Ads.

Certain product categories such as Baby products, Books, Camera, Cell phones etc. are allowed in the sponsored product categories. Certain product categories do not require approval and have no restrictions. However certain products such as collectible coins require approval before using the sponsored product option.

Is it a good idea to invest in Amazon sponsored products?

Amazon sponsored products can be availed at specific pricing. This includes the subscription cost and additionally a per-click cost. Now, the question is how much you would benefit by doing this investment. It is required that as a seller you understand your ROI.

One fact is that, Amazon sponsored Ads are far lesser-priced as compared to others such as Google or Bing. Click To TweetWith an individual plan, for each sale, you need to pay $0.99 and in addition a variable closing fees and referral fees.

On average Amazon recommends that in case you sell less than 40 products per month, its better to choose a professional plan. This is because you would anyways spend (40 x $0.99) = $39.6. Whereas a professional plan subscription would cost you $39.99.

Moreover, given the fact that most users first search products on Amazon, you would be able to seek multiple opportunities to be found using Amazon sponsored products. This certainly isn’t an opportunity to miss if you make substantial sales and are looking forward to increasing your sales.

Amazon sponsored product bids can be optimized and when used effectively can make a drastic increase in your sales.Overall, you would see a good ROI with these sponsored Ads.

How to create sponsor Ads on amazon?

Creating sponsored Ads on amazon is simple. However, its only over a period that most sellers optimize the performance of these Ads. As a first step, you need to be a seller in Amazon. In case you do not have an Amazon professional seller account then you can create one or you can upgrade your account.

Seller account can be created here – http://www.amazon.com/seller-accountCreate sponsor Ads on amazon

Once your login to the portal you will be able to see the seller central. On the extreme right you would find the Settings, where you can click on Account Info as shown below.Account Info

From here you can click on the seller information and choose Modify plan.seller information

Here you can upgrade by clicking on Proceed to Upgrade. With immediate effect, your professional seller account will be set, and you will be able to see additional tools that are linked to the professional seller account.

Remember the professional plan have a different subscription pricing and this would get reflected. With this, you have setup your Amazon professional seller account that enables sponsored products.

The next step is to setup a marketing campaign goal. For instance, you would have to choose a suitable time when you would want to run these campaigns. This could be on specific days of the week or on certain special days such as Christmas.

Such campaigns can be setup by using Advertising-> Campaign Manager. Here you also need to choose a budget that you are willing to spend. The budget would depend on your sales. Its ok to start with a smaller budget and then you can optimize it gradually. Amazon also provides the below options:

  1. Automatic targeting -> This is auto managed by Amazon. Based on your product information, Amazon will show your products on relevant searches
  2. Manual targeting -> The seller will provide keywords and the Ads will appear for only matching keyword searches.Setup a marketing campaign

Add a campaign name along with a start and end date. Next, you need to create an Ad group. Ad group does the following:

  1. This represents a group of products that sellers want to market
  2. This will also contain the keywords for which the seller products should be shown

You can create multiple Ad Groups.

Next you can choose the products you wish to advertise. These can be specific products. Add keywords that are relevant to these products.Choose the products to advertise

You can choose keywords and also provide negative keywords along with bid.Choose keywords

This would be the bid the seller is willing to pay whenever a user clicks on the Ad. Also referred as Pay per click (PPC). Like Google Ads, here you can use exact match keywords, broad match keywords and Phrase match keywords.

Note that these keywords can be added only to manual campaigns. With automated campaigns, Amazon picks your Ads automatically.

This sets you completely for using Amazon sponsored products and is the starting point. From here you can measure your Ad performance and adjust bids accordingly. Gradually you can optimize the performance of your sponsored product Ads that appear on Amazon.

Conclusion

Amazon gives you tons of opportunities to optimize and increase your sales. Amazon sponsored products are one of the best finds to quickly create brand awareness and seek newer sales ventures.

The biggest benefit of Amazon sponsored Ads is its ease of usage and reasonable pricing. There are multiple help guides available to help sellers optimize their sponsored Ads. Click To TweetAmazon sponsored products if used in the right way can drastically increase sales.

 

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