When currently selling or focusing on your future transition onto the Amazon marketplace, you should pay close attention to the following facts:
The unique monthly visitors on the Amazon North American Marketplace totals over 100 million for desktop users and 70 million for mobile. Across the pond in Europe, there are over 80 million on desktop and 45 million on mobile. There is a reason why Amazon has become such a powerhouse in today’s market. For example, where else can you find a quality trampoline, an in home sauna, or a grill side countertop all in one place? Right, no-where. Also, you buy everything from the comfort of your own home! On top of that, shoppers are 80% more likely to buy on Amazon compared to Google, as well as three times as many buyers on Amazon!
Most companies who list products on Amazon see what we call a ‘blast effect’, an instant increase in sales. Then, they experience a decline in sales, or on the flip side, might not even experience the blast effect at all. If you want success on Amazon, you need to understand how Amazon’s Search Algorithm works – right?. Well our next blog will go more in depth into their algorithms, but for now we will keep it simple and focus on one, their PPC algorithm.
A9 is the name of Amazon’s product search algorithm. Since this is a guide about ranking products on Amazon, it makes sense to start at the source. This is Amazon’s official statement for how their A9 algorithm calculates search results, “Our work starts long before a customer types a query. We’ve been analyzing data, observing past traffic patterns, and indexing the text describing every product in our catalog before the customer has even decided to search.”
Most of the buyers browsing your products have already been hand selected and tailored based on their past search pattern. Furthermore, it is critical to keep this in mind while building listings and PPC campaigns. In this blog, we are going to cover the five main points of how PPC works on Amazon.
The Five Main Points
- Keyword Research Strategy
- Bidding Strategy
- Match Type Focus
- Keyword Research
When doing keyword research, it is helpful to have a full understanding of keyword search volume. There are multiple softwares available that will help you determine the estimated search volumes for keywords you wish to add to your campaign. Compile a bulk list of keywords and keyword phrases and then thoroughly re-read and niche down your list to the ones that are in direct relation to your product.
It is important to have a mix of words with search volumes ranging from high to low. Keywords with high search volume can be very competitive and costly. Your bid for these words will be expensive, so be sure that the keyword directly correlates to the product you are selling. Many people disregard key terms with low search volume when it should be the exact opposite. You could potentially be missing out on purchases from these lower volume phrases. The competition for bids will most likely be very low. If the key word phrase is in relation to your product, it is a cheap and easy way to make sure you are not missing out on potential customers.
Your strategy should be choosing words that have a medium to high search volume. If no one is searching for your keywords then they will never see your product. However, you may also want to choose words that are at a low search volume, because if too many competitors are using the same keywords as you, your content is bound to get lost in the shuffle. For example, the keyword “trampoline” may be searched by millions daily whereas “12 ft. trampoline” may only be searched by a couple thousand people daily.
Another vital part of keyword research is keyword relevancy. You want to select keywords that pertain to your content so that the reader or consumer finds exactly what they are looking for. For example, imagine you own an athletic shoe company, relevant keywords could be: sports shoes, outside shoes, and running shoes. Certainly, you wouldn’t choose keywords such as “evening attire”.
For more information regarding keyword research software and many other PPC tools click here.
- Bidding Strategy
- If you believe that a keyword is going to sell, bidding higher ensures more impressions and clicks. This can be costly, so be sure to bid high on words you are confident in.
- Secondly, when bidding high your chances for ranking are significantly easier. It may be costly and you may lose some money at first, but moving forward, you can then decrease your bid and still win the bid slot.
- The final strategy when bidding high would be to only bid high for keywords that you know are directly correlated to your product. Bidding high on phrase and/or exact match types will almost guarantee that you will generate more impressions and clicks, which would result in increased sales.
- Whenever considering removing a keyword, first consider a low bid option. A low bid option should be considered when the broad term is highly competitive, highly related to your product, and the keyword has had poor performance, but still generates sales. If you are looking to run a PPC campaign you have to know when to hold and when to fold. When you bid low on high-competition words your ads will appear at a smaller fraction of time. If you decide to run a campaign selling “running shoes” you may want to start the bid low, so you don’t miss out on potential buyers. Keep in mind that low bids result in low clicks and impressions. For example, for a trampoline company hoping to capture buyers searching for trampolines, it would be hard to gauge whether the term “trampoline” is worth the standard bids or not. Thus a low bid option is best.
For more information regarding high and low PPC bidding strategies, read about our bidding tips here.
- Match Type
You should also consider the keyword match type when running a PPC campaign. Determine whether or not your keywords will be broad, phrase, or an exact match. For example,
keywords that are broad could be “running shoes” or “trampoline”. A phrase keyword could be “summer running shoes” while simply “Nike shoes” could be used as an exact match. However, be careful not to flood the campaign with unwanted keywords matches such as “hiking” or “weightlifting”.
Based on your product’s category, Amazon’s A9 algorithm matches you with similar products in your specified category. If you make the crucial mistake of selecting the wrong category, then your keywords will not relate to the product. To play it safe, do a simple Amazon search using your product’s name and review the left hand side of the screen to see which categories best work. You are looking for the main category and sub-supporting categories. Again, remember the athletic shoe company. You don’t want to be listed under “appliances” or your keywords will never be searched. However, if you select “men’s fashion” with a subcategory of “Men’s running shoes”, you have a higher chance of gaining impressions in front of relevant buyers.
By using a PPC Software, you can easily and efficiently determine which keywords and search terms are receptive to the public, and generating sales, as well as which terms fall flat. Although this takes hours on hand, it is also important to analyze all keyword reports. By doing so, you figure out how to properly optimize your PPC campaigns by determining which keywords are working effectively and which are not. Overall, regular audits should be done every two weeks.
Want to find out how to properly optimize campaigns by using our PPC software? Click here!
In case you want to dominate the Amazon marketplace today, get in touch with us. Our software solutions can automate your operations, making your life easier and profits healthier.