After becoming a seller on Amazon, you will come to know the requirement and need for advertising your products on Amazon and marketing your online brand name. Amazon listing optimization benefits your store by highlighting your product. Amazon PPC advertisements or paid campaigns, where a seller only pays to Amazon for what customer clicks can be a little complex to manage. Amazon has a bidding formula to determine which ads are shown.
This procedure decides which Product (Sponsored) it shows to the customers based on the keyword bids. To ensure you rank high for these set of keywords, you have to compete with other sellers and place the highest bid.
For instance, if you are selling a kid’s high chair, then “kids high chair” and “high chair” would both be keywords worth to bid for. You never know what a user will type to search for your product.
Bidding for the keywords in your Ecommerce Product Listing is like an auction. This means, that the one who places the highest bid will obviously win the auction and get their ad displayed at the top of the search results. However, you have to just pay what the seller who came in second place bids for.
So now, if a Seller ONE bids $1 for the keyword “high chair” and Seller TWO bids $1.20 for it Seller TWO would win the auction but they would only have to pay just $1 whenever their ad gets clicked on by a user because that was the bid from the seller ONE, who ranked second.
Your campaign or ad will show up only if you win a place in this bidding auction. This makes selecting the right bid extremely important. But once you set your bids, you can’t just sit around, leave the bids as it is and expect to win the auction.
Why bids should be optimized
You have to nonstop look at your account’s data stored with Amazon and carry out the respective changes to ensure you’re constantly winning those keyword biddings. For example, if fewer people buy your product after clicking on your ad, your conversion rate for the item listed repeatedly goes down and if you don’t adjust your bid to reflect that of a sale, you could end up spending more on the campaigns than the sales.
Whenever there is noteworthy or substantial data change you should always check for your keyword bids by default. Altering your bids to correspond with the data changes is a monotonous and tedious task to handle by yourself. Even if you’re running just a single campaign with just a few keywords, let alone the thoughts of scaling your online business and running multiple campaigns simultaneously.
Who can help you with it?
Afterall, Keyword Bidding is quite crucial and not very easy to understand. This is why experienced and professional Amazon account specialists like Hike Commerce are needed to run successful paid advertising campaigns on Amazon. We are independent Amazon consultants who offers a number of account management, PPC campaign, keywords optimization, product listing optimization services etc. for your online brand.