A Seller’s Guide to Amazon Sponsored Products

With the holiday season upon us, online retailers are getting ready for a record-breaking year. Online sales during the season are expected to increase by 33% to $189 billion.

COVID-19 is accelerating that growth. That means that more retailers are vying for those dollars as traditional retail stores shift marketing budgets online.

If you’re an FBA seller on Amazon, you can employ various strategies to get in front of customers. One of them is to invest in Amazon sponsored products.

Do you want to know what they are and how you can use them to get more sales during the most important time of the year?

Read this Amazon sponsored products guide to learn what they are and how to build out your campaign.

What Are Amazon Sponsored Products?

Do a search on Amazon for a product. At the top of the search page, you’ll see a banner with products. Underneath the banner, you’ll see more products.

They’re also seen on product detail pages underneath a product description and on the left-hand side of search pages.

These are sponsored products. You can tell because they have small text that says “Sponsored.” These ads appear according to keyword searches and ad bids.

You pay for the ad when someone clicks on the sponsored product listing.

Sponsored products let you promote specific products to reach buyers when they are searching for your products on Amazon.

Winning the Buy Box 

What is the Buy Box? This is the box on the right-hand side of the product page. Customers add their product to the cart for purchase.

The vast majority of Amazon’s sales happen through the Buy Box. Sellers that offer the same products compete for a spot in the buy box. The seller that’s there is most likely to get the sale.

The Buy Box is important to master before you create a campaign. That’s because products have to be able to win the Buy Box to launch sponsored product ads.

As a seller, you have to have a great reputation. Little to no returns, fast customer response time, and great reviews all come into play if you want to win the Buy Box.

How to Sponsor a Product on Amazon

Are sponsored products on Amazon worth it? It depends on your budget and how well you execute the sponsored product campaign.

You need to know the ins and outs of creating a campaign and managing it effectively. These are a few elements that need to be in place.

Set Your Goal

Every advertising campaign needs a goal and a sponsored product campaign is no exception. Your goals will dictate the rest of the campaign, including what metrics you use to measure success. It’s also likely to impact your budget.

For example, if you want to increase sales, your best shot is to have your ads appear at the top of search results. These are the only ads that appear before organic results. They give you the best chance to make an immediate impact with potential buyers.

This advertising spot is more competitive, and it will require a larger ad budget. Your main metrics will be the cost per click and product page conversion rate.

A brand awareness campaign needs a different approach. You don’t necessarily have to fight for the top listings. You do need to get as many impressions as you can. That’s what you need to measure.

Check Your Listing

How is your Amazon listing performing? You should check your listing to make sure that it’s set up to drive sales. Look at your conversion rates and review the details of your listing before you advertise.

Check the headline and description of the listing. Put yourself in the shoes of someone seeing it for the first time. Does the listing make you want to buy the product?

You also want to double-check the images to make sure they show the product’s benefits and features.

People will read the reviews of a product before deciding to buy. The more positive reviews your product has, the more likely it will convert.

Set Up Your Campaign

Now is the time to set up your campaign. Head over to Seller Central and click on Advertising. In the campaign manager, you’ll set up your campaign.

Give your campaign a name, select the start and end dates, and set a budget for the campaign.

Your next step is to set up an ad group. This is a great way to organize campaigns if you have a lot of products to advertise. You can create ad groups for different categories.

Once you choose the products you want to advertise, you need to add your keywords. You want to choose keywords that are specific and have a fair amount of search volume. You’ll set your CPC bid and launch the campaign.

Managing Your Sponsored Product

There are a couple of ways to manage an Amazon sponsored product campaign. You can select automatic bid management or manual.

For new advertisers, start with automatic bid management. As you learn more about sponsored product ads, you can switch to manual.

There are more Amazon PPC tricks that you can use to manage your campaign. The main thing is that you make your listings clear and appealing. That will only help your ads convert to sales.

Winning More Sales With Amazon Sponsored Products

How can you get more online sales when it counts the most? Turn to Amazon sponsored products. These are PPC ads that you can bid on to get your listings to the top of search results.

These ads put your products in front of buyers when they are ready to buy. There are a few things you have to have in place to run a successful campaign.

Make sure you sponsor your top listings and they have the right keywords, good images, and a lot of positive reviews. You also have to make sure your seller account is in good standing to win the coveted buy box.

Are you ready for more e-commerce tips and insights to help you win the holiday season? Check out the Technology section of this site.


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