My product is shown as “sponsored” with PPC, when i have the buy box correct?? And Amazon gets paid only if your product is showing up as sponsored and they click on it correct?? If these two things are corrected then one must think Amazon wants your PPC product to be shown more than the other sellers of this product that doesn’t do PPC, than that should mean that you will get the buy box more???
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- Yes, the you must have the buy box for your sponsored product to show as sponsored.
- Yes, Amazon charges the PPC fee each time the Sponsored listing is clicked.
- I do not think the buy box rules include PPC consideration. See Amazon for details on the buy box process.
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So a good or bad idea?? Brand owner wants to do PPC along with me doing PPC. We are the only two on the listing.
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Unless you are investing in the relationship for other opportunities, PPC spending should be rationalized the same way you would for your own product.
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Looking to establish a long term wholesale relationship with brands
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Spend up to the amount of your Gross profits.
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My ACOS is around 15% on most of my products.
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@BetterLifeSales That is true, you must have the BuyBox for your PPC ad to be shown, this increases your Buy Box percentage. I believe some sellers have seen as much as a 20-30% lift in Buy Box percentage.
I would highly discourage two sellers running PPC on the same product. This means that for the same keyword you are competing. For example: if seller A and seller B are both bidding on “tooth,” then the cost will be higher per click since there is more competition for the keyword.
I would recommend offering to run PPC on your account using either a percentage of gross profit, or offering to use PPC to lift sales (potentially risking an unprofitable ACOS, but lifting rank/sales/visibility) and splitting the PPC cost with the brand.
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Mitch is 100% correct regarding the competing keywords. You can quickly increase the cost of a keyword and make that campaign no longer profitable in some cases. We have taken the approach with 2 of our brands that we run all PPC and AMS and split the bill at the end of the month. While the math does not work out to 50/50 we agreed that this is the best approach for the brand. Hope that helps a little
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If i have a Brand Owner that is running PPC while I’m running it also and i want to tell them that i would run it and they would not have to. They don’t want to get rid of their PPC because they say that they will lose direct sales. Could I convince them, that me doing PPC alone will still generate organic traffic to them?
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@BetterLifeSales I’m not 100% sure that I am following the question but they should understand how listings and buy boxes work if they are running their own PPC. They should also understand that they will benefit from PPC whether they are running it, or you are running it. If they don’t, you should explain that the listing gaining traffic and visibility from your campaign will help increase both of your sales.
From the sounds of it though, you need to convince them that you can run a more profitable and successful campaign than they can. Offer to take a look at their advertising statistics. See what they are doing right and wrong and set up a call to discuss. If you have had some success with PPC for other brands, create a case study to present to them.
@BetterLifeSales I would ask them what they mean by direct sales. Yes the brand owner’s buy box percentage will be higher while running PPC if that is what they mean. If the brand owner is savvy to the platform, you need to convince them that you are more accomplished in PPC campaigns and that both parties will benefit from you being the one running it. If they want it to come from their account, offer to manage the campaign(s) from their account.
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