Volume 1,

#95: A Beginner’s Guide To Amazon PPC With Search Scientists

April 20, 2014

Amazon PPC is becoming a popular method to acquire customers with paid traffic. Michael Erickson from Search Scientists joins us this week to give a high level overview on the difference with Google Adwords/PLA, and how e-commerce store owners should get started with Amazon PPC.

Topics Discussed:

  • Background of Amazon PPC vs. Google PLA/Adwords
  • CPC, Conversion rates, and Impressions of Amazon vs. Adwords
  • Setting up Amazon PPC, product feeds, and getting started
  • Trust factor affiliation with traffic from Amazon
  • SKU level bidding, UTM tagging, analytics, and measuring results

 

Mentions in the Episode:

 

Episode Length: 27:44

 

Download Options:

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  • Storewars News

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  • Russell Smith

    Nice episode, thanks Terry!

    I’m really trying to figure out a profitable way to drive paid traffic to my store, where the products range from £9.99 to £14.99 each (net profit averaging 50%-75%).

    It seems that paying £0.50 per click is just gonna be way too high to make any money, considering average conversion rates for eCommerce.

    I wonder if you may be able to recommend a good platform to start with paid ads… I’m gonna be trying out a selection this week and see how conversion goes.

    Thanks!

    – Russ

    • Russell – be careful there – there is no ‘average ecommerce conversion rate’. Depending on the product margin metrics, cost of customer acquisition, competition, etc.. you can be profitable at 0.4% conversion rate, and unprofitable at 6% depending on the business.

      Obviously, if you’re selling a $5,000 dollar product, you’ll have a vastly different conversion rate than a $5 dollar product to be profitable.

      I’ve got plenty of high-end clients running ultra profitable at 0.25% conversion rate =D

      • Russell Smith

        Thanks for your reply Mike!

        My store is currently running on about a 2% conversion rate on organic and direct traffic. The direct traffic comes from Amazon / Ebay inserts who obviously are interested in buying. So the organic conversion rate is likely lower than 2%.

        If I’m paying about £0.23 per click (which I am from FB at the moment), and I ran with an estimated 2% conversion, a quick bit of maths would suggest that I need 1 in 50 to buy… is that logical thinking?

        0.23 x 50 = £11.50 … that would be running at a loss per sale of about £1 – £3…

        I will run some campaigns in different places – including Amazon Ads – and see if I can turn a positive ROI.

        I’m wondering if I should be hunting down cheaper clicks?

        Or do you think moving in the direction of comparison engines might be a good move?

        Thanks so much for your information!

        – Russ

        • The pursuit of cheaper, more profitable traffic is never ending! Starting small and conservative is a great way to test the waters.

          Of course, the traffic source and CPC is just one piece of the equation, your website, offering, whether or not you can outmatch the comparison shopping are all things to think about.

          Cheers man – good luck!

          • Russell Smith

            Awesome thanks Mike!

            Feeling optimistic 😉

            – Russ

  • Yeah Buddy!

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