Editor’s note: This is a guest post by Franz Jordan, CEO of Sellics
By the end of 2016 Amazon sellers saw a sharp increase in their PPC spend.
The average winning CPC bid by Amazon product category increased by approximately 20% ($0.28 to $0.34), from Jan-July 2016. According to CPC Strategy, “the biggest takeaway is that CPC’s went up in all categories (with the exception of music & sports memorabilia).”
This effect has been compounded by Amazon’s incentivised review ban in October 2016, which pushed more sellers to use Amazon PPC, one of the remaining on-Amazon marketing strategies left to sellers to drive the potential for more reviews.
With more sellers flooding the Amazon marketplace in 2017, the PPC landscape is set to be more competitive than ever. This makes it critical for sellers to learn to optimize their PPC spend, and avoid burning money in ad spend areas they can control on Amazon.