In this episode of the effective e-commerce podcast when we talk about some more advanced Amazon tactics including Amazon PPC pay per clicks also known as sponsored products and we’re talking about headline ads and some it enhanced brand content. So once again I am NOT the world’s biggest expert at Amazon or any of this stuff but I’m making about $50,000 revenue a month you know profits probably close to ten eleven twelve thirteen thousand pounds something like that I’m doing I’m doing decent it’s always tough calculating the exact numbers they’re making decent money of Amazon.

I’m no slouch by any means. So let’s talk about Amazon PPC sponsored ads and how it works. So basically the way it works is you can pay Amazon to rank your product at the top for certain keywords or you can steer this you can break you can pay Amazon the regular product at the top and one of the ways to do it is based on keywords. So let’s use as always performance nut butter is an example because that’s the newest company easiest to talk about I might pick the keyword paleo snack and paleo is the type of diet and you know feint certain snacks on it and. So I might bid for paleo snack and I’ll tell Amazon you know every time someone clicks on my ad I’m willing to give you a dollar and what it does is Amazon basically makes your product look like all the other products they might add a little thing that says expletive product but it’s harder for people to tell that it’s a sponsored product and they’ll put it at the top and. So what happens is Amazon gets a dollar every time someone clicks on your product and they make money every time someone purchases it.

I’m pretty sure the way Amazon determines where to rank your product is based on how much money they’re making off of you Amazon’s goal is to make as much money off of you as possible. So for instance let’s say just to make the numbers really easy let’s say one ad gets a hundred clicks but only you know makes one sale and another ad only gets ten clicks but makes all ten of those are sales the person that gets the ten clicks don’t think it’s ten clicks we’ll probably can pump pay less per click. So you want to have a good product you want to be ranking for keywords you want to be paying 40 words that are likely to get you making you money not to mention the fact that if you’re spending a hundred dollars on PPC you should be making at least a hundred dollars in profit off of it remember with Amazon they’re amazon’s customers they are not your customers. So you won’t have to see the money right away now if it’s your own Vince AdWords and your own website you might you know not you might be peopling to break even or you’ll lose money on the first sale knowing that you can get the repeat business I would say be careful with that on Amazon personally but that’s up to you I mean you know if you’re if you’re calculated and smart enough you can probably do it. So you lose money on the initial.

So why is this. So powerful well it’s the easiest way to rank at the top of Amazon right away the other ways to rank at the top of Amazon for things like let’s say I’m trying to rank for nut butter which is very competitive keyword it’s almost impossible there’s giant companies that their entire job is try to get number one on Amazon for the keyword nut butter not my specific niche product is probably never going to be number one for that category and that’s okay what I would rather do is go after the more niche keywords such as like I said paleo nut butter because the bigger companies don’t care about that little niche keyword and a lot of the bigger companies don’t have paleo friendly nut butters. So I’d go against that all right I’ve been trying to bid against that. So that’s the way it works you’d enter into Amazon all the different keywords you want to rank for and ultimately you can add negative keywords and you can say the price of what you’re willing to pay per click and Amazon does it’s magic and it’ll figure out how much to charge you and all that kind of stuff and then periodically you’re obviously going to want to review it. So there’s a few different types of campaigns that you’ll want to run there’s the automatic campaign what I call a competitor campaign a specific product search term more of a generic product search term and related products all five of those.