Maximizing Sales on Amazon in 2023: Advanced Strategies including Advertising and PPC

It’s 2023 and so many changes have already been seen, from A9 to now A10 algorithm and so much more. 

And do you know that Amazon is playing a dominant role in product advertising and helping sellers to accelerate their sales? 

It’s a huge retail giant – or let’s say a marketplace, or a retail company, or perhaps the most customer-centric corporation on earth.

Well, no matter how you categorize it, it is also one of the biggest digital ad powerhouses with the excellent revenue we’ve seen so far. 

Caution Alert: If you haven’t leveraged this marketing channel so far, you have already missed a lot of sales but it’s not late yet. 

Let’s understand what the types are of Amazon marketing channels and their strategies in detail. 

But before we dive in, let’s take a quick view on some recent stats, that’ll give you a perspective towards why to boost your sales through Amazon. 

• Amazon is now the third biggest digital ad platform in the US. And it’s anticipated that US advertisers will spend about $4.6 billion just on Amazon’s ad platform, accounting for a country’s 4.1% of overall ad spending. Source: Insider Intelligence

• The Amazon's advertising income is anticipated to reach $16 billion as compared to AWS’s at $15 billion. Source: Search Engine Land

Ever wondered what Amazon’s marketing strategies are? And how does it manage to pull off so effectively that it beats the record? 

Let’s understand. 

Amazon's market is divided into two parts. 

1. Demographics
2. Psychographic

When it comes to psychographics, they influence and target every customer individually. They analyze their shopping preferences, buying behaviour, and further, try to convert one-time visitors into regular, high-value and long-term customers. 

Besides publicizing its broad product range, Amazon also utilizes this data to focus on single customers, demographics, and geographies. 

Their targeted social media ads, Google ads, and well-publicized sales together have played a key role in turning Amazon into what it is today. 

The 4 Ps of Amazon Marketing Strategy

Amazon’s marketing mix (4Ps) is created to take advantage of its e-commerce operations. Its four components enable international growth and competitiveness. 

Popularly known as the “Marketing Mix”, Amazon analyzes a company or a brand that covers 4Ps, which include:

1. Product
2. Price
3. Place
4. Promotion

Here’s an explanation of what the factors do. 

1. Product 

Though Amazon began its e-commerce journey with just books, today it sells millions of products – grouped under various categories. 

The best-selling product categories include shoes, jewellery, clothing, toys, home & kitchen appliances, electronics, books, sports, car accessories, fine arts, etc. 

Amazon offers items from independent businesses and retailers, it also promotes its private label products more commonly known as Amazon Basics. 

As this e-commerce giant continues to expand, more products are appended to its inventory regularly. So, diversity in products is the key reason why it stays ahead of its competitors. 

2. Price 

A company can use various pricing strategies to sell its products. Here are a few ways to consider:

• Cost-plus pricing
• Value pricing
• Competitor pricing
• Price discrimination

Amazon typically utilizes a competitive pricing strategy where it consistently assesses its competitors’ price lists, serving as a base for its product pricing. It ensures that its prices are kept low while giving customers a broad range of selections. 

3. Places

In recent years, Amazon has expanded its online retail business in different parts of the world. This presence has made it convenient for customers across the globe to have access to millions of products. 

4. Promotion

Promotion is all about communication and Amazon understands it. It communicates with potential buyers and customers through ads with the help of various tools. 

Since, now we know how it works to be in Amazon to market your products. 

Let’s now dig in to understand the most influential marketing channel that can drive you good sales in the marketplace. 

Amazon PPC: Let your Marketing outshine!

Do you know? According to Wikipedia, PPC (Pay-Per-Click) is an advertising model popularly used on the internet to drive more traffic to a website. The process is simple. An advertiser pays (a specific amount or fee) to a publisher (usually a website owner, search engine, or network of websites) whenever an ad is clicked.

Each time your ad gets clicked, you’ll receive a visitor to your website and when this happens, you pay a small fee to the search engine. When the PPC campaign works properly, the fee becomes trivial because the visitor count is worth more than what you’re paying for it. 

We suggest you follow this:

• Research and pick the right keywords.
• Placing those keywords properly to ad groups. 
• Setting the PPC campaign’s landing pages
• Optimizing the landing pages for conversions

By charging less for ad clicks. Let’s say that your landing pages and ads are satisfying as well as useful to users, then Google will charge you less for each click and this, in turn, generates higher profits for your business. You get rewarded every time you craft intelligently targeted and relevant PPC campaigns.

To use PPC, it is vital to know how to do it right.

Now, let’s talk about Amazon PPC in specific.

Why should you invest in Amazon PPC marketing?

There were times when spending money and time on advertising was secondary but it’s not such anymore. Since new sellers and businesses are opening their accounts on Amazon every other day, the competition has increased rapidly.

Moreover, the average CPC (cost-per-click) rates are inclining in every product category, at a rate that it has reached a point of saturation in certain instances, only to fend off some competitors. 

So, does Amazon advertising make sense, anymore?

We’ll say, yes! But only with a smart strategy, you will be able to make profits and achieve growth. 

According to a recent study done on 1000 shoppers in the U.S., 41% of them begin their product search on Amazon and then end up buying there.

And there’s no magic to achieve numbers, it’s all how well you can convince shoppers to buy “only” from you. 

But the question is why should you pay for advertisements on Amazon? 

Let’s answer this question by asking you one simple question.

Do you rank for potential keywords in the top 3 results?

Of course, No?

Then, advertising is the only option to get your product into the limelight and start generating some sales.

Know how PPC advertisement can help you!

• Greater visibility: There are chances that you might not have ranked for potential keywords on Amazon SERPs yet, making you lose your hands on a lot of potential traffic.

However, by running optimized Amazon ad campaigns, you can help acquire great visibility. People will only get to know your brand once you start running ads. Amazon PPC will make it happen for you.

• Pay for click: One of the unique features of Amazon PPC is that you don’t have to pay for your listing’s impression (An impression is calculated every time your advertisement is shown on the search engine results page). You don’t have to pay a separate fee to make your ad appear. Instead, you’ll pay only when the user clicks on your ad, making it cost managing for you.
• Device-friendly: One of the benefits of using an Amazon PPC campaign is that it is device-friendly! It enables your sponsored ads to be displayed on all devices – be it any. 
• Reach buyers and not viewers: Since potential shoppers search directly on Amazon, you will find more people with an intent to buy. Undoubtedly, appropriate sponsored ads help in saving their time because the product that they are looking for appears alongside the targeted search. So, it’s just a click away. This is also one of the most effective Amazon marketing strategies.
• Track your success: Amazon provides the feature of sponsored product ads reports to help sellers to optimize their ad campaigns and track their success. It allows the sellers to know whether their products are being executed in the right direction.
• Rankings: Since product ads are displayed above the organic results, they serve as a great advantage. People with an intent to purchase will tend to click on these ads first, given that they are attractive enough.

We hope now you know how Amazon Marketing works and to launch a product on this marketplace. In case you have any further questions or doubts, connect us for a complete support from our Amazon Expert.