Successful performance on Amazon goes beyond your bids. As you learn more about Amazon Advertising you will begin to see everything is connected. For instance, in order to generate sales, you need to have reviews, but you can't get reviews without sales. This is one example of the Flywheel Effect.
Here are some key factors that will influence success:
Listing Optimization (Retail Readiness):
Highlight the benefits and features of your product within you the title and description of your listing and fill your description bullet points with keywords discovered during research. Learn more here.
- Reviews: Product reviews are very important for generating sales, you need reviews to generate sales. Use the parent-child ASIN structure to bundle all SKUs and reviews within one listing. Consider Amazon's early reviewer or Vine programs to get more reviews.
- Utilize Backend Keywords
Many things influence Amazon's Algorithm, which will also affect ad placement, but the #1 ranking factor are sales. Price and ranking also play a big role. Amazon will place the add that will most likely make them money.
Other factors Associated with Amazon's Algorithm:
- Inventory Levels: Make sure popular products do not go out of stock. Amazon likes sellers who keep a high in-stock rate to minimise refunds and pre-fulfilment cancellations.
- Organic Sales: PPC and Organic sales are linked, in order to boost your organic ranking, you need to advertise, conversely, you need organic sales to improve your ad placement.
- Sales driven from External Links
- Amazon Rankings: Rankings are influenced by on-page (listing) optimization and organic sales volume.
Competitive categories have a high number of sellers, giving consumers many product options to choose from. This also means there's a high number of sellers bidding on similar keywords, driving up the cost of a click. Launching a product in a competitive market is very challenging, especially on a small budget. Having more sellers to compete with can mean lower conversion rates, higher CPC, and higher ACoS.
FBA (Fulfillment by Amazon) Status:
Amazon will favor FBA SKUs over FBM when placing ads. Prime Status will attract more buyers and boost sales.
Keep an eye on your SKU status to avoid hurting sales ranking and interfering with the bidder. The bidder does not recognize when a SKU is out of stock, ineligible for advertising, suspended, or lost the buybox. Pause your campaign in Amazon or request for bid automation to be disabled with our support team, if campaigns go dark for extended periods of time.
Next: How Does the Bidder Work?