To get your Amazon Listing promoted as a Sponsored Product or a Headline search ad, you must register to sell on Amazon.
Amazon Seller Services operates in a similar way to Google AdWords’ cost per click design where all relevant sellers place a bid in the marketplace auction.
The higher your bid, the more likely it is that you will win the auction and get to display your ad. Advertising budgets are completely under your control, you can set them to as little or as much as you like.
A product where there are more listings competing for attention, such as T-Shirts or TVs, will cost more to advertise than an unusual item that only has a few competitors.
After you have received your Ad clicks, they are logged against your invoice. You can see these charges itemized in the Selling Fees area of your monthly invoice.
The total advert fees for the month are taken from your account balance.
If you don’t have enough balance to cover the cost of the fee, the remainder will be taken from the bank card you have on file with Amazon. Be careful though, multiple attempts will suspend your Seller Account.
If you prefer, you can opt to only pay the fees via Bank Card. You will get an invoice every time your card is charged. Your card will be charged after passing the following stages:
- After the 1st £1 of clicks (To validate the card)
- When you have reached your credit limit. There are five levels of credit (£50, £150, £200, £350, £500). Every account starts at £50. You progress to the next level when you have reached your current limit and have made a successful payment.
- 3rd of each month, your monthly subscription charges have been added from the previous month and are due.
Amazon Daily budgets
Amazon is a very cost-effective way to advertise, organizations usually have monthly spend budgets. Simply divide this total by 31 to get a close approximation to your daily spend.
If you enter this number in the maximum daily amount, Amazon will make sure that spend does not go over this virtual barrier.
There is an online amazon fee calculator here. This tool will give you an overview of average fee charges along with possible revenues you could expect from selling with Amazon.
A ‘basic’ store on Amazon is defined as selling 35 or fewer products a month. This will result in a per-item fee of £0.75. More than 35 products is known as a ‘pro’ store and will cost a monthly subscription of £25.
Getting started with Amazon Sponsored Ads & Headline Search Ads
So, becoming a seller on Amazon really is as easy as 1, 2, 3.
1. Create your campaign
Product listing and bid details. Select Auto or manual keyword targeting. As you may expect, Auto saves you time by having Amazon do it. Manual gives you complete control over the keywords at the expense of time.
2. Shoppers see the ad
Headline search ads must go through a review, but sponsored products launch immediately. Ads always appear in relevant, Hi-Vis site spots. Sponsored product ads go to the product item page, Headline search ads go to a custom landing page.
3. Measure your results
There are a number of reports that will help you to analyse your ad campaign’s effectiveness and efficiency. A popular KPI and buzzword to calculate is “ACoS” or Advertising Cost of Sale.
In Summary
We hope this guide has given you an insight into how much it would cost to set up and run an Amazon advertising campaign. If you need any help with your Amazon advertising management please do get in touch.
