Strategy

Amazon Sponsored Products

The Amazon marketplace, while a great selling opportunity, is also a very competitive. Driving buyers to your listings can be a challenge, especially when you are competing against Amazon as well as numerous other third-party merchants. Additionally, a 2014 Forrester Research, Inc. study found that 39% of US consumers begin their product search on Amazon.com as compared to 11% who started on search engines such as Google.

 

Why Sponsored Products


Amazon Sponsored Products allows you to promote your Amazon listings with pay-per-click, keyword-targeted ads that appear on the Amazon marketplace. Sponsored Products gives you more control over product merchandising on Amazon. Targeted ads help you boost the visibility of your products when shoppers search for keywords you bid on. You pay a fee for this program only when an Amazon shopper clicks on your ad and is taken to the detail page where your offer is listed in the Buy Box.

Sponsored Products ads appear with Amazon search results, in the right rail, at the bottom, and sometimes worked into the natural search results. Customers can also see Sponsored Products ads on both mobile and tablet browsers. 

Common business reasons for using Sponsored Products include:

  • Drive sales of a new offer to generate reviews.
  • Increase sales of SKUs with low page views.
  • Increase visibility of SKUs in competitive categories.

You can use Sponsored Products to:

  • Improve product visibility with an opportunity to get listings on page 1 of Amazon search results.
  • Deliver highly relevant ads targeted to customer searches.
  • Measure return on investment and optimize advertising spend.
  • Anecdotally, some merchants have reported that sales driven by Sponsored Products have contributed to natural search ranking improvements.

Important Considerations:

  • You need an Amazon advertising account, via Seller Central, and are billed separately from your marketplace monthly fee and Amazon category-specific referral fees.
  • Fees for Amazon Sponsored Products are in addition to your regular Amazon referral fees. 
  • ChannelAdvisor supports Sponsored Products for retailers listing on Amazon US and European Amazon marketplaces (UK, Germany, France, Italy, Spain) at this time. Amazon makes the program available in Seller Central in Canada, Japan and China.
  • Amazon supports Sponsored Products for new or certified refurbished products only and currently does not offer the program in the jewelry, camera, books/media and adult categories.
  • Sponsored Products differ from Amazon Text Ads, as this advertising format directs shoppers from Amazon to the merchant’s website.

ChannelAdvisor's Comprehensive Sponsored Products Management

Using ChannelAdvisor to manage your Sponsored Product advertising give you the following benefits:

  • Manage your Amazon listings and advertising programs in one location.
  • Automatically sync to import all your current Amazon campaigns, saving valuable time.
  • Receive Advertising Insights that provide recommendations about the best products to advertise.
  • Target the best products to advertise using ChannelAdvisor’s proprietary Smart Select technology to identify products by core attributes (e.g., brand, ASIN, listing date) as well as Amazon-specific data points (e.g., Buy Box attainment, sales rank, FBA status).
  • Enjoy centralized campaign management, which allows you to view all performance metrics for your cost per click entities – campaigns, ad groups, ads and keywords – from the same interface, helping you manage to your budgets and goals.
  • Strategically choose either automatic or manual keyword targeting options (automatic helps you get started quickly and provides actionable feedback on Amazon-selected keywords based on customer searches while manual provides for more customization and finessing of bids and keywords in your campaigns).
  • View advanced performance metrics such as product-level reporting, conversion rate, CPC, advertising cost of sales and more.
  • Use bulk operations to activate, pause or archive campaigns as well as perform bulk management of keyword bids and advertised products.

Please Note: At this time, the ChannelAdvisor Comprehensive Sponsored Products feature is available for advertising on Amazon US and European Amazon marketplaces (UK, Germany, France, Italy, Spain). If you would like to use Sponsored Products on another Amazon marketplace, Amazon has a Sponsored Products feature in Seller Central. It is located in the 'Advertising' tab.

 

Getting Started with Advertising on Amazon


  1. Go to your Amazon Seller Central Account.
  2. Access the Advertising tab.
  3. Indicate your payment details, accept the Amazon Terms & Conditions, and establish your advertising account.
  4. Return to ChannelAdvisor to (1) Authorize ChannelAdvisor for Sponsored Products and (2) Set up your campaigns. The Amazon Sponsored Products Setup Guide will describe these next steps.
    • Please Note: To authorize your account in Seller Central will need to log into Amazon using the primary Seller Central login email and password.

 

Reference


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