Wanna Get More Sales?
Are Amazon Ads worth it? (3 times when it’s NOT)
I
discuss that here in my latest video (just published): https://youtu.be/Y4RXWZbfxTY
For this topic, we need to pretend like we’re chatting at a bar.
Or a Chili’s. Drinks in hand.
And you ask me: “Pat, are Amazon Ads worth it?”
Eyes!!!
My answer is “NO” if:
(1) stock is low. If you’re waiting on that boat from China and don’t want to sell, ads shouldn’t be on.
(2) your review average on a SKU is under 4 stars, rework the root product problem then resume ads.
(3) your profit margins are below 7.5% (after Amazon fees and all). If your takehome is less than $7.50 on $100 in revenue, you shouldn’t run ads on that SKU. Ad spend can rarely operate on margins that thin. You can try, but the ads will be break-even. And you’ll have to rely on organic sales to make money.
But my answer is “YES” in all other cases.
Because Amazon Ads appear mostly at the tops of pages. These are prime placements… no pun intended.
It’s like your product being on eye-level at Walmart instead of all the way down at people’s feet. Do you want to be at eye-level or at foot-level?
You simply get more sales. And sales pay the bills. And will have your significant other looking at you that much more 😉
Also, Amazon operates at what folks call “bottom of funnel”. Amazon is built for people to buy stuff. So Amazon Ads catch people in “buy mode”. What’s Instagram designed for? Pretty pictures. Not buying stuff! So Instagram ads literally need to pull people out of a social experience. On Amazon, they’re ready to buy.
My team and I spend $12m on Amazon Ads every year. Want to cut the years of blood, sweat, and tears and get straight to results? Book a free strategy session here:
We’ll give you a customized plan of action for your Amazon business. Then, if you want us to implement it, great. And if not, you can do it yourself. That’s great too because I will have helped someone. I wish you the best.
