One of the most effective ways of increasing sales on Amazon is running Amazon Sponsored Products (PPC) ads. It works similar to Google Ads, where you create an ad and place a bid for it. You are only charged when a user clicks on the ad. But Amazon sellers that have tried these ads or are currently running several Amazon advertising campaigns will have come across some challenges.
Table of Contents
- Two Big Challenges Amazon Sellers Have with PPC Ads
- Hiring an Agency for Your Amazon PPC Management Challenges
- An Alternative Solution That’s Cheaper Can Be Found with Automation
- What Are the Benefits of Amazon PPC Automation Software?
Two Big Challenges Amazon Sellers Have with PPC Ads
The first big challenge that Amazon sellers may face is finding the time to create PPC campaigns and manage them. While these ads can run for long periods of time without any changes, it’s not a set it and forget it solution. There are always new products being added in the marketplaces, new sellers running competing ads, and changing bid prices.
Many Amazon sellers are already dealing with things like customer support, working with suppliers/manufacturers, shipping out products to Amazon’s warehouses, and managing multiple product listings. It can be difficult to add building and managing ad campaigns to the list. Selling on Amazon is challenging enough already with the constant competition.
The second big problem is that many Amazon sellers don’t have the skills or knowledge to make these ads profitable. These Amazon sellers have tried running the pay per click ads only to end up losing money. They see other Amazon business owners doing well with the ad platform but cannot figure out how to make it work for their particular business.
Hiring an Agency for Your Amazon PPC Management Challenges
One solution to these challenges is to hire an agency to build and manage your Amazon PPC campaigns. Experienced and specialized agencies that focus on helping Amazon sellers know to build winning campaigns. They can take care of everything from keyword research, optimizing for conversion rates, improving product listings, to increase your rank for various search terms.
On top of that, they will manage your campaign so that you can focus on building your business. They’ll monitor your bids and budgets to ensure that your campaigns remain profitable. You do not always have to be looking behind your back to see if a competitor is trying to take away your spot in the pay per click ad auction.
The management services can cost you anywhere from $500 to $1000 a month in the lower range. The fees can go up depending on how many products you are building campaigns for and how big your campaign actually is. It can cost thousands of dollars a month for these services if you are a big-time Amazon seller.
An Alternative Solution That’s Cheaper Can Be Found with Automation
Going with an agency is not for everyone. A more affordable solution can be found in automation software. You can opt to go with an Amazon PPC management tool that helps you build and manage your campaigns without wasted ad spend or wasted time. These tools give you everything you need to build a winning campaign.
Here’s a list of some benefits of going with Amazon PPC automation solutions:
- Gives you access to in-depth information about keywords, rankings, sales, and other factors to build your campaign on.
- Uses ongoing campaign data to optimize your campaign to help you maximize your profits.
- Help you monitor ad performance so that you can quickly make adjustments manually to keep your campaigns profitable.
- Automatically adjusts your bids so that your campaigns remain profitable. This is important because new products are entering the market and bids are changing all the time
- Guide campaign based on specific goals the Amazon seller has put in place such as favoring more sales over margins so that more customers are acquired.
What Are the Benefits of Amazon PPC Automation Software?
There are several benefits of going with Amazon PPC automation software over hiring an agency.
Benefit #1: You Save a Lot of Money
While many of the Amazon PPC management agencies create exceptional results for their clients, you have to realize that hiring them can really eat into your profit margins. Some sellers sell products that have low margins and generate profit through volume. Hiring an agency, in this case, would mean taking a big hit to your earnings.
Benefit #2: It’s More Accessible for New or Smaller Sellers
New sellers or sellers that only sell a few campaigns will do better by signing up for a PPC automation software. They are already dealing with smaller sales numbers and profit margins.
Benefit #3: Your Data is Kept Private
If you have one or more products that are doing well with very little competition, you’ll probably want to keep your data private. While unethical, it’s not difficult for an agency to use your information to compete with you without your knowledge. There are so many private labeling services and wholesalers that they can turn to.
Benefit #4: You’re Getting Access to the Same Tools Agencies Use
In many cases, the agencies are using the same or similar tools to help build and manage their campaigns. Many sellers assume the agencies have a custom solution that gives them an advantage over everybody else, but that’s not the case. If you’re willing to spend some time and energy learning how to use these tools, you can expect to see similar results.
Benefit #5: It’s Ideal If You’re Already Running Ads
If you’re already running ads on the Amazon PPC platform, why not just use an automated software solution to help you. It can help you save a substantial amount of time, make it easier to manage your campaigns, and help you optimize campaigns without obsessing over the tiniest details.
In conclusion, there are challenges Amazon sellers will face when it comes to building and running Amazon PPC campaigns. Sellers that are doing big numbers will benefit from working with an Amazon PPC agency. However, this may not be the optimal choice for most sellers. It’s also not an option for sellers that want to keep their data private. While there are many benefits of going with automated PPC solutions, it’s ultimately up to you how you want to manage your campaign.