Module 11
Amazon Sponsored Products

11.1 What are Amazon Sponsored Products?

Watch the video below to see how Amazon themselves explains Amazon Sponsored Products:
The Key Points are:

  • When you use Amazon Sponsored Products, your ads may appear on page 1 of Amazon’s search results and detail pages.
  • This exposure can drive traffic to your product and help increase your sales.
  • How does it work?
    • Start by creating a campaign with the products you want to advertise.
    • Set a bid: the maximum amount you want to pay for a click on your ad.
    • Then, when a customer searches for your product, Amazon uses an auction to determine which ad to display. Amazon decides who wins, based on both relevance and bid.
  • Amazon Sponsored Products is a Pay-Per-Click (PPC) system: you only pay if the customer clicks on your ad.

So what does this look like on the Amazon website?

Let’s say for example that you are searching for ice tea pitcher:

Here is where you can find sponsored products on the Amazon websites. - From Zero To Liftoff Amazon FBA course
As you see, Amazon displays a mixture of sponsored ads and regular organic results. The displayed sponsored ads have placed a bid for the keyword ice tea pitcher and won the auction. Now, if you were to click on one of these sponsored ads, the seller would pay Amazon for that click.

Before we move on, there are two other things you need to know about Amazon Sponsored Products:

1. Only products who own the Buy Box can bid for Sponsored Products ads

  • As a new seller, it takes time for Amazon to trust you and give you the Buy Box. Yes, even if you’re the only seller, Amazon may withhold the Buy Box from you.
  • According to Amazon, Buy Box eligible sellers are professional sellers who have met performance-based requirements. While the Buy Box eligibility status does not carry any additional expenses, sellers must meet certain performance measurements to be given the status. For a complete list of the Buy Box eligibility criteria, head over to Amazon’s official page, here.
  • Until then, you can’t use Amazon PPC. Talk about shooting themselves in the foot, right!

2. The highest bid doesn’t automatically win

  • This is because Amazon also looks at the probability that your advertisement will convert into a sale, the conversion rate. This is why it is important to follow our guidelines to optimize your product listing page, increase your conversion rates and provide excellent customer service.

Let's Learn About Automatic vs. Manual Targeting!

There are two types of Amazon Sponsored Products campaigns: Automatic Targeting and Manual Targeting. Next up, we’ll explain the differences between the two.