Amazon Sponsored Products: Everything You Ever Needed To Know

Amazon Sponsored Products

The demand for online products grows daily, and it’s not surprising that sellers come up with various ways to maximize sales. In this sense, Amazon sponsored products can be a powerful marketing weapon leading to increased visibility and income.

Among countless ​​opportunities to improve your business, selecting the right tool is crucial. Whether experienced or novice, every seller should carefully decide which model of sponsored product ad to choose.

In our guide below, you’ll learn how the Amazon sponsored product program works. Also, we’ll show you how to use this tool to your advantage as a seller.

What Are Sponsored Products On Amazon?

Sponsored products are Amazon’s pay-per-click ads. In a nutshell, this program works similarly to Google Adwords. What makes this way of earning income popular is that these ads are only paid for if the consumer clicks on them. It’s a very convenient system handy for beginners because it allows you to control costs.

Amazon sponsored products can be an excellent choice if you want to:

  • Promote seasonal items;
  • Sell ​​surplus goods as soon as possible;
  • Get an idea of the market’s interest in new products;
  • Ensure your ads appear across multiple devices and platforms.

How To Start Using Sponsored Products?

If you want to become part of the Amazon Sponsored Product program, there are several criteria. You’ll need to:

  • Be (or become) an active Amazon professional seller;
  • Have the ability to ship products to all U.S. addresses;
  • Have product listings in one or more of the available categories.

Additionally, becoming a part of the Amazon Sponsored Product program means your product listing must be eligible for the Buy Box. Why? Because sending traffic to a product listing where you don’t own the Buy Box means your ad will not appear.

Think of it as if you were operating a market stall with vegetables. You do your best to attract people’s attention and direct all your strength and resources to ensure your product is visible. But, what you absolutely don’t want is someone else’s cash register on your counter. 

Not owning the Buy Box is the same as someone else benefiting from your efforts. In other words, one of the reasons why it’s vital to meet this requirement is to prevent you from paying traffic for another seller.

The good news is that Amazon will notify (remind) you of this possibility, which is a convenient way of leveling the playing field. 

Amazon Sponsored Products Strategy

When it comes to Amazon’s Sponsored Products, keep in mind that you can opt for two different types of campaigns: auto and manual. Here are the upsides and disadvantages of each option and how to make the most of them.

Auto Campaign

In an auto campaign, Amazon tends to guess which keywords are the best to use. In this campaign, you’ll need to take into account the following factors:

  • Daily budget;
  • Start and end dates;
  • Products advertised;
  • Default bid.

The Auto Campaign is typically the more famous Amazon PPC strategy because it’s quick and easy to set up and run. However, as a seller, you’ll have less influence and control, which is the opposite of the manual advertising method.

Manual Campaign

In contrast to the automatic way of running a campaign, where an algorithm predicts and places keywords, the manual seller is responsible for this segment. In other words, the seller, based on their research, chooses (a) keyword(s). 

If the selected keyword(s) matches the buyers’ search, the seller’s ad enters the auction. Winning the auction means their ad will be on display for buyers.

How To Choose The Right Amazon PPC Campaign

Each campaign has pros and cons. On the one hand, the automatic option saves time while simultaneously providing effortless, sophisticated technology. On the other hand, the manual strategy gives the seller more control, but at the same time leaves room for mistakes, especially if you have no experience.

So, how do you choose correctly? Try to recall the old tortoise and the hare story: the moral of this ancient tale winning a race is more about pace and control, and less about speed. While we’re not saying you should go with the manual strategy at all costs, it’s crucial to take your time when deciding between the two.

Therefore, the answer to the question of which Amazon sponsored products campaign to use is – both. Combining these two methods typically leads to maximum results. In the previously mentioned race example, choose the simpler hare (automatic campaign) in the straight lines, but don’t forget to switch over to the tortoise (manual strategy) when you need more control and less speed. 

How Much Do Amazon Sponsored Products Cost?

First and foremost, let’s take a closer look at how you make money through sponsored products.

Sponsored products operate on a pay-per-click (PPC) model. Anyone who wants to create and display their ad needs to submit a bid. Among all auction participants, the seller that bids the highest price wins the auction and the opportunity to display their ad.

Price-wise, you’re looking at different amounts depending on the keyword. Typically, Amazon sponsored products cost per click can range between $0.20 for less competitive keywords up to $6 for extremely competitive keywords.

How To Get Started: Step By Step

If you want to become part of the Amazon Sponsored Product program, you can do so in a few simple steps:

1st Step:  Log in to Seller Central (or Sign Up);

2nd Step:  Create your campaign;

3rd Step: Reach more shoppers with sponsored ads;

4th Step: Control your costs;

5th Step:  Track your progress.

Sponsored Products on Amazon: Yes or No?

When an online seller decides to become part of a marketplace, they enter a highly competitive industry. It’s crucial to provide real value to buyers and stand out from the competition to succeed.

As a marketing tool, Amazon’s sponsored products offer numerous benefits. The most significant advantage is in auto and manual campaigns, the combination of which can lead to quality results with a high dose of flexibility. Also, Amazon PPC management’s automatic targeting option be significantly cheaper than other ways of obtaining keywords.

As a result, with less money invested than in numerous other campaigns, you can not only earn a stable income but also increase your organic traffic and conversion rate. Bottom line, the Sponsored Products program can be an invaluable resource in growing your business sustainably in the long-term.


How To Use Amazon Sponsored Products?

Amazon sponsored products are pay-per-click ads. These ads are globally popular since their campaigns can be automatic, which is especially beneficial for beginners in this business. Anyone who wants to advertise their product needs to place a bid on an auction, and the seller with the highest bid wins the auction, and their product becomes advertised.

This type of advertising is not only significant in terms of earning income. Given the name and influence of Amazon, this program can contribute to a considerable increase in organic traffic and conversions.

How Quickly Does Amazon Sponsored Products Work?

Wondering when you can expect the first results of the Sponsored Products program is perfectly normal. Unfortunately, nothing worth doing is easy (or quick). Results may vary depending on the targeting method you choose.

In other words, if you’ve opted for an auto campaign, the results can be visible after just a few days.

On the other hand, manual targeting usually lets you reap the fruits of your work after about eight weeks. In any case, you should be patient and closely monitor the statistics and progress of your chosen campaign. Over time, you can react and make corrections as you see fit.

Why Participate In The Sponsored Product Program on Amazon?

Amazon Sponsored Products is another in a series of ways for sellers to earn or market their products. The benefits of such campaigns can be different. If you have a surplus of products that you’re looking to unload as soon as possible, this program can be an excellent solution. 

Also, by advertising on Amazon, you are increasing traffic to your site, which further improves your chances of driving higher sales. Sponsored Products are a superb choice for both novice and experienced online sellers, so join the sponsored product community today and grow your business.