A new Amazon product has no reviews and no sales history, so almost nobody finds it. Amazon PPC (pay-per-click) ads help the product get seen. But running ads without a plan can burn money fast.
What is PPC?
With PPC you pay only when someone clicks your ad. Your ads can show at the top of search results and on product pages.
3 numbers to watch
- Budget: how much you are willing to spend per day.
- Bid: how much you pay for one click.
- ACoS: advertising cost of sales, which shows how much you spend on ads compared to the sales they bring.
ACoS example
If you spend $10 on ads and get $50 in sales, your ACoS is 10 ÷ 50 = 20%. Whether 20% is good depends on your profit margin. That is why margin must be calculated first.
The most common mistake
Running ads without keyword research and without a profit plan. You pay for clicks on the wrong words, and you do not know at what ACoS you start losing money.
PPC is step 7 in the 7 steps from research to launch. I help sellers with PPC forecasting, listing SEO and full launch roadmaps.