PPC Eats my profit
Hello,
I’m a new seller on Amazon. I launched my product middle of April. These days I have a problem with advertising. PPC always eats my all of my profit. Do you have any suggestions? I really need help about this.
Thank you very much.
22 replies
Seller_6sxtIS0RbZ5k7
It’s still very early days, I think it’s part and parcel of launching a new product that you aren’t going to start making much of a profit on it until it has achieved a decent ranking and you can disable PPC. Where is the organic ranking falling? Can you find it on the first couple of pages?
Are you promoting it anywhere else, eg. Facebook? I see you are selling pet products, when I launched a range of dog cards I joined various Facebook groups for the breeds I had featured and did an ‘introductory’ price for them over one weekend to drive traffic and kick start sales.
You could also consider donating one of whatever your product is to one of the many auctions being run by various animal charities (again on Facebook.) If something is donated by a business they will put a link to your shop and then, once the bids reach your usual price, you will find that the less altruistic(!) members will hop over to buy it from you instead of paying over the odds for it. It all helps to drive sales and clicks.
Seller_3TxhVJ1GuBSgl
Is your listing fully optimised with keywords? It’s important you have your listing optimised first before even touching PPC or you’re wasting your time/effort and money.
Seller_77IcbQKVGdZo0
There are some Amazon webinars on advertising this week. It maybe a good idea if you sign up for one or more of these.
It may help you understand how PPC works and how to use keywords effectively
Remember just because you have PPC you still need an engaging listing with good quality pictures and descriptions to get buyers to buy.
If it is eating all of your profits it is not currently worth it so you may want to consider stopping PPC for a short while and see how many organic sales you get.
Seller_ae51e0CJoHqCX
You have to strike a balance between the price you charge for the product against the price you are putting into your PPC campaigns.
You need to review your campaigns and check how much your spending on the keywords against the purchase to optimise your spend.
Remember you are paying per click and not per purchase, you may have lots of irrelevant clicks that are not receiving sales and you may have some keywords that are monopolising the sales and could use the budget more wisely and up the spends in some areas whilst dropping it in others.
I find that often broad match high value keywords will swallow your budget. For example you may be selling a red permanent marker and have the keyword pen that are generating a couple of sales but the broad match will get a lot of irrelevant clicks for your campaign with a variety of people maybe looking for a regular pen of any colour and I would imagine the click price to be high.
If you was to put in a large budget for red permanent marker and put this as an exact phrase then the clicks will reduce but the conversions would be high if that makes sense.
Seller_h1GfDCcq4E4jB
If your images aren’t up to scratch then people aren’t going to buy your product when they click on it. Getting people to your site is the easy bit. If the listing isn’t fully optimised then you can waste a lot of money. What is your click-through rate and ACOS?
Seller_y0ARSvlTiA4L8
Be very careful my friend as PPC can destroy your business.
I have tried to configure it in different ways and compare the outcomes.
So experiment with the cost per click, I manage to spend about 11p per click now, compared with 30 or 40p before. the orders generated from these clicks are similar.
Also do not trust the cost v value of orders that the reports show - It seems to me that some of these orders would have come through anyway (so try to get an idea of this by pausing ads for a week).
I would be interested in others views regarding how long a new product needs to be advertised to establish sufficient sales to give it a first page position.
Seller_BS5lg2keRs2QO
You really need to improve your listing before spending more on PPC.
Your main image almost has a white background, but not quite. Redo all the bullets you have in your images - the language is poor and so is the spelling. On one of the images the word “hypoallergenic” appears 3 times and other claims are repeated too. I also don’t know why there’s a photo of a “gift chew toy” - i couldn’t spot any reference to a toy being included anywhere.
The same point about spelling and grammar also applies to your listing itself. Unless there’s a really limited choice or a very good deal i am hesitant to buy from sellers who can’t get the basics right.
On your brand content, i’m not a huge fan of your logo but i’m also not a graphic designer. The first image (white dog) doesn’t seem to be the same bed - no brand attached and different cushion?
Again, the language is quite poor. As an example, what does this mean:
"Removable cover allows you to erase a lounger in the washing machine with no
internal elements and soft mattress."
I’m also confused as to the structure of the bed. I see references to “normal” memory foam and gel infused shredded memory foam with images of both. Also not sure whether it can be described as being orthopedic.
Your mission is written twice and to be honest is a bit of a word salad. If you really want one make it 2 sentences at most, 1 may be best.
A lot of improvement can be made by getting someone with English as a first language to rewrite things.
Seller_wRKqgBUbIGuM5
Send your products using FBA, prime always gets the buy box if you are the only seller. Then you will have a ranking once you have sold one and it will start performing for you to fulfill orders.
Seller_XrsxyuONn8r2w
We dropped our PPC budget by 95% and sales didnt really drop at all. I believe if you are paying to advertise a product that 500 sellers are also paying for, then you are wasting your money unless you pay serious money per click.
Seller_VJFloi7Cs0iaR
Some very sound advice here, but rememeber… it’s not your profit until you have it, in your bank, after everything is paid, taxed and accounted for.
If your PPC is required to sell the product then it’s a cost of business, just the same as the product itself, the postage and packaging etc.
You want to make more profit? look at ways to reduce costs in all areas.
