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Alternative to Amazon PPC.

by MattKeg
9 replies
  • PPC/SEM
    • |
Hey guys, So I have a quick question. I bought my first private label product and sent it in to Amazon FBA. It is selling for >15 dollars, and the average PPC on Amazon is about $1.50.

So seeing that I'm not going to be making a substantial profit from using PPC on Amazon, what are my other promotional options.

I'm sorry if this has been asked before, I'm just stuck and really want this to work out.
#alternative #amazon #fba #ppc
  • Profile picture of the author Jonny2spoons
    Make sure you are getting the buy box regularly so that people are buying from you rather than your competitors. Amazon have some great training on how to do this.

    You could also think about ranking your Amazon product in Google, it's not too difficult to do if you have a basic understanding of SEO.
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    • Profile picture of the author MattKeg
      Yeah I'm sure I have the buy box because I'm private labeling a product.

      But I will look into SEO. I never really thought about that.
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  • Profile picture of the author DWaters
    Think of it this way - using Amazon PPC now is not so much to maximize your profit margin but just to increase the number of sales, which in turn can get you more product reviews.


    With a private label product with a good number of reviews it should eventually carry itself and you will not have to worry about advertising as the item will show to customer searching for that type of product.
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    • Profile picture of the author MattKeg
      Originally Posted by DWaters View Post

      Think of it this way - using Amazon PPC now is not so much to maximize your profit margin but just to increase the number of sales, which in turn can get you more product reviews.


      With a private label product with a good number of reviews it should eventually carry itself and you will not have to worry about advertising as the item will show to customer searching for that type of product.
      In that case if it is only to just get more reviews, wouldn't it make more sense to just give away my product to get the initial reviews? It would seem more lucrative in the long run.

      Or does PPC do something else other than get reviews?
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      • Profile picture of the author dburk
        Originally Posted by MattKeg View Post

        Or does PPC do something else other than get reviews?
        Hi MattKeg,

        Yes, it increases your orders.

        You need to measure and calculate profit, not only a per order basis, but also consider the benefits that increased order volume can do for your total monthly profits.

        Ask yourself which you would rather have:

        A $20 profit per order on only 3 orders? Or, a $profit per order on 60 orders? Order volume can change the total profit calculation in a very significant fashion, try not to overlook that.
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        • Profile picture of the author MattKeg
          Originally Posted by dburk View Post

          Hi MattKeg,

          Yes, it increases your orders.

          You need to measure and calculate profit, not only a per order basis, but also consider the benefits that increased order volume can do for your total monthly profits.

          Ask yourself which you would rather have:

          A $20 profit per order on only 3 orders? Or, a per order on 60 orders? Order volume can change the total profit calculation in a very significant fashion, try not to overlook that.
          I'm sorry I don't understand your post. While I'm giving away products it would be at a discount, so it would still count towards the order volume correct?

          With PPC I would be losing more money than I if I just gave some of my product away to get into the Amazon organic results.

          I should say with Amazon PPC I would be losing money, I haven't looked into other sources yet. But that's just the way I see it.
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      • Profile picture of the author DWaters
        Originally Posted by MattKeg View Post

        In that case if it is only to just get more reviews, wouldn't it make more sense to just give away my product to get the initial reviews? It would seem more lucrative in the long run.

        Or does PPC do something else other than get reviews?
        An idea for getting additional reviews would be to use coupons to "give away" the product at an attractive discount. Use retailmenot.com or some of the other coupon sites to set up a coupon for the product. People buy it cheaply and that may lead to more reviews.

        Be sure to set it up so only the correct number of buyers can buy using the coupons. You do not want your FBA inventory to be depleted. That can sometimes happen quickly.
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  • Profile picture of the author LucidWebMarketing
    What Don is saying is that too many advertisers focus on CPC. Try to increase sales which will increase your overall profits.

    If you don't want to pay $1 in advertising, you are leaving money on the table. Say you had only 3 orders without advertising and making $60 from those sales. But you could advertise and have 30 orders making $600 less the cost of advertising, say $10 per order, that's $300 in profit vs $60.

    My question is, in your original post you said the average CPC is $1.50. Is that what Amazon says (keyword tool?) or what you actually paid?

    I find it strange that it would cost $1.50 for selling a $15 item. It doesn't usually work that way. I think you may have issues with your campaign.
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    • Profile picture of the author MattKeg
      Originally Posted by LucidWebMarketing View Post

      What Don is saying is that too many advertisers focus on CPC. Try to increase sales which will increase your overall profits.

      If you don't want to pay $1 in advertising, you are leaving money on the table. Say you had only 3 orders without advertising and making $60 from those sales. But you could advertise and have 30 orders making $600 less the cost of advertising, say $10 per order, that's $300 in profit vs $60.

      My question is, in your original post you said the average CPC is $1.50. Is that what Amazon says (keyword tool?) or what you actually paid?

      I find it strange that it would cost $1.50 for selling a $15 item. It doesn't usually work that way. I think you may have issues with your campaign.
      I see what you're saying.

      I ran an auto campaign, and usually $1.50 wasn't even enough of a bid to get me on the list. After just 7 clicks I was at $10.00

      I started to do some manual targeting for some longer tail keywords and most of the suggested bids were around $0.60 to a $1.00.

      And to be honest with you, I don't think I'm even in that competitive of a market.
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