Amazon

To be successful on Amazon, you need to lay the foundation with thorough keyword research. The keywords from this research should be reflected in your product data. The most important keywords should be included in the title. For potential buyers, the product should be presented in the bullet points in the most appealing way possible with clear USPs. The more often the product is purchased, the better the organic ranking will be. In addition to high-resolution images, you should also include videos in your content, as they spark interest and often appear more authentic. Review management is also crucial. Happy buyers should be encouraged to leave reviews. And don't forget to respond appropriately to buyers with negative reviews.

In order to be relevant to Amazon's algorithm, the most important thing is that everything on the product detail pages is consistent and meets the requirements. Your product images should be of very high quality, the bullet points should be appealing, and the title should be the right length. At the same time, the most important information should be conveyed and the decisive keywords should be included. If the information on the product detail page is poor or incomplete, there is a risk of a high bounce rate. Lots of clicks without actual purchases can quickly drive up your advertising costs.

As an Amazon Vendor, you enjoy several advantages. Amazon takes care of sales and customer service, allowing you to focus entirely on your core business. You have access to advanced marketing tools such as A+ Content and Amazon Vine. Payment is reliable and made directly by Amazon, regardless of sales figures. Your products are labeled "Fulfilled by Amazon," which inspires greater confidence among buyers. Logistics are simplified, as Amazon handles storage, shipping, and returns for you. You also have the opportunity to easily market your products internationally. And you don't have to worry about complicated pricing strategies, because Amazon sets the retail price.

Start by structuring your campaigns, for example by category, brand, or bestsellers, to avoid duplication of work. Before you really get started, define clear goals, such as your desired cost-to-sales ratio (ACoS), click-through rate (CTR), or cost per click (CPC). This will give you a good starting point for your optimization steps.

Be sure to keep an eye on your CPC bids, as they are crucial. The amount of these bids influences whether your campaigns are profitable or not. Higher CPC bids will get you more traffic and clicks. While this can lead to higher sales, it can also result in higher costs. Monitor the performance of your keywords regularly and adjust them accordingly.

If your cost of sales is above your target value, you could lower the maximum PPC bid to adjust the ratio – or vice versa. Sometimes it's also worth increasing bids for keywords with few impressions and no sales to give them more attention. Don't forget to use negative keywords to exclude unwanted terms. By the way, optimizing your listings (check out Amazon SEO) is essential for successful campaigns – it forms the basis.

Various factors such as conversion rate, response rate, and customer reviews play a decisive role in the Amazon algorithm. Relevance is just as important as performance. Therefore, your most important PPC keywords should appear in the title, bullet points, and description. Keywords in the title increase CTR and CR.

First, focus on relevant keywords that are already used on your product detail page. Only then can you broaden the scope of your ads. Remember to monitor closely to see which keywords are performing well and which are less successful. Use all campaign types and targeting options wherever possible. 

The most commonly used ads on Amazon are Sponsored Product Ads (SPAs). They are similar to Google Shopping ads and appear above, between, or below organic search results. They can also be displayed on product detail pages under "Sponsored products related to this item" or under the attributes. A major advantage is that Amazon customers with a specific purchase intent see relevant ads while they are searching or shopping. Both sellers (via Seller Central) and vendors (Amazon Marketing Services) can use SPAs. A single ad always promotes one product and follows the same structure as organic search results.

Ads on Amazon are billed according to the pay-per-click (PPC) cost model. This means that advertisers only pay when a potential buyer clicks on the ad, not for the mere display of the ad (impressions). The cost per click (CPC) depends on the maximum bid submitted for a keyword, e.g., "sneakers." Amazon PPC ads are placed through a bidding process in which advertisers compete with each other. The highest bidder gets the first and most prominent ad position and pays accordingly. The relevance and optimization of your product listing are also key factors for successful campaigns here. Click prices (CPC) on Amazon.com currently vary from a few cents to several dollars. The amount of the bids depends on the type of keyword and the volume of competition.

To be profitable with ads, you must not spend more on advertising campaigns than your margin. As long as the ACoS (Advertising Cost of Sales) is lower than the margin, you will make a profit. Let's assume that a product has a margin of 18% (after deduction of taxes, Amazon fees, product costs, overhead costs) and the ACoS is 14%, then 4% remains as profit. This serves as a simple example. The ACoS also depends on the desired strategy. For example, it may make sense to invest more in the initial phase when launching new products or when aiming to increase brand awareness.