The Dirty Little Secret of Amazon Advertising

Amazon PPC. The secret weapon to getting your product in front of more shoppers, make more sales and generate more profit. Right? Yes and no.

PPC can also eat into your profit margins, cause you to stop making money and even incur a loss. I'm not talking about when you're gunning for visibility during a product launch. That's when you need to be aggressive with your bidding and taking a hit in your pocket is to be expected.

I'm talking about after that. When month after month, you are paying out to Amazon and not the other way around.

You see, Amazon Advertising doesn't work for all products. And I should know. I speak from experience.

So imagine my astonishment when myself and a couple of other sellers discovered a simple way to determine whether or not Amazon Advertising would work for our products or not.

You see all you need to do is calculate four PPC metrics that really matter. These are the same metrics that top Amazon sellers measure but that most other sellers have never even heard of.

They are:

  • Max Cost Per Acquisition (CPA): this is the maximum amount of money you can afford to spend to acquire one sale to BREAK EVEN. This is calculated by multiplying the selling price by profit margin.
  • Click To Order (CTO) ratio: this number tells us how many clicks it takes to convert to a sale. This is calculated by dividing the Clicks by Orders.
  • Max CPC: this is the maximum amount of money you can afford to spend per click. This is calculated by dividing the max CPA by the CTO.
  • Current CPA: this is what you are currently spending to acquire a sale. This is calculated by multiplying the average CPC by the CTO.
The upshot being, the bigger the difference between the max CPA and current CPA, the greater the potential, or conversely the challenge, to make or lose money with PPC.

Armed with this powerful insight, you can either grow and scale your campaigns profitably and with confidence, or you can stop wasting time and money on unprofitable ads and rethink your PPC strategy and goals.

Either way, you can stop hoping for the best and have control over your Amazon Advertising rather than the other way around.

We've put together some FREE training that walks you through how to complete this simple self-audit of your own PPC.

This is the same audit we use in our own business, which has generated over $10MM in combined sales for clients.

This training alone could save you a tonne of money and make a HUGE difference in the way you look at Amazon Advertising.

To get access to the training, head over to our website now.

Laura McCaul

Laura McCaul is Co-Founder of Sponsored Profit, an Amazon Advertising agency dedicated to helping sellers succeed with PPC.

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