Amazon is a leading online marketplace that enables sellers to showcase their products in front of a worldwide audience. However, it doesn’t guarantee successful selling unless you are using the right marketing strategies. The main reason Amazon sellers fail is that their products’ visibility is low. Most Amazon customers search for a product and choose those that feature in the top results. So, if your product listing does not appear in top Amazon searches, it will not get you the expected amount of sales.
Amazon sellers who are unaware of the mechanism behind Amazon searches cannot capitalize on it effectively. To ease seller efforts, Amazon offers a standalone marketing and advertising platform called Amazon Marketing Services (AMS).
The AMS platform is gaining traction and is rapidly emerging as an effective marketing medium to promote products on Amazon. It is broadly classified into two categories i.e Amazon SEO and Amazon PPC. This blog post highlights the important aspects of Amazon SEO and Amazon PPC. Read further to know how you can formulate the most ideal marketing strategy for your Amazon business.
Amazon SEO services Improves Organic Ranking
Listing products as per the Amazon Seller Central guidelines does not guarantee improved visibility. Since hundreds of similar products are available in each category, reaching out to potential customers is a challenging task. For this reason, proficiency in Amazon SEO has an impact on product visibility. Amazon SEO improves the organic ranking of your products leading to improvement in sales.
The optimization of product listings requires relevant keywords and engaging content to increase click-through ratios (CTRs) and conversion rates (CRs). The A9 algorithm on which Amazon searches work follows a two-step process to deliver results for any search query. In the first step, known as the filtration process, the algorithm filters various products based on the searched keyword. For example, you are selling “shirts” on Amazon, and a customer searches for “white shirts.” So including “white shirts” as a keyword in your product title and description, you can optimize your listing for improved search ranking. Moving on to the second step, that is sorting by purchase likelihood, ranks products based on their performance. The products having high CTRs and CRs get ranked higher in comparison to low performing products.
How do keywords and performance decide the ranks?
Keywords play a significant role in displaying the search results for a particular query. If your product listing does not contain the keywords that match the search query, it won’t appear in the results. Hence, keyword optimization for every listed product is a must. After the filtration, Amazon lists the remaining products based on their purchase likelihood.
Amazon ranks the remaining products in a specific order based on their performance. The key performance indicators (KPIs) are click-through rate (CTR), conversion rate (CR), and most importantly, sales. Amazon takes these KPIs into account at a keyword level to determine the rank of any product. For example, the iPhone will have different CTRs, CRs, and sales for the keywords “smartphone” and “iPhone.”
Amazon SEO services can improve your product listings significantly to enhance your product visibility and increase sales. The only drawback with Amazon SEO is that it is a slow process and may take time to rank your product in top Amazon searches. On the contrary, Amazon PPC produces an immediate effect by increasing sales, but only during a small period of time.
Gain Immediate Results with Amazon PPC
PPC ads on Amazon drive more traffic to your product listings to boost sales and improve conversion. Amazon PPC ads are broadly divided into three parts i.e Sponsored Ads, Sponsored Brand Ads, and Product Display Ads. The sponsored ads, appear across the top whenever you search for any keywords in the Amazon search bar.
PPC ads also need optimizations to perform better with time. For example, Sponsored Ads are the most commonly used type of PPC campaign. It incorporates bidding on keywords relevant to your product listing. Once the user searches for specific or related keywords, ads appear on top of the search results. Hence, sponsored ads have greater reach and deliver results more rapidly. These ads feature right above the organic results to draw customer attention. Also, regular CPC adjustments are made to optimize these ads.
Depending on how high the bidding on a specific keyword is, Amazon PPC can improve the visibility and sales of related products.
What’s better for you?
Choosing the ideal mechanism out of these two is a strategic choice, as both enable you to accomplish the desired outcome. Combining Amazon SEO services and Amazon PPC together can lead to significant improvements in ranking with a boost to sales. While Amazon PPC enhances your sales and conversions through paid campaigns, Amazon SEO improves organic ranking. For example, PPC ads get displayed on Amazon based on relevancy. Amazon only shows your ad if it is relevant to the search terms used by shoppers.
Likewise, sales directly impact the organic ranking of a product. It implies that more sales generated via ads positively impact the product’s organic rankings. The biggest gainers are new products that have no sales history, and their performance can negatively impact their organic ranking. So with Amazon PPC ads you can drive traffic and increase sales, to improve the performance.
Both Amazon SEO and Amazon PPC are effective marketing tools that improve your products’ visibility and boost sales. Combining the two can amplify their effect to achieve the desired results in less time. However, to begin with, Amazon SEO is recommended as keyword and listing optimizations are prerequisites for successful PPC campaigns.
Choose Oodles for Successful Amazon Marketing Services
Generate better results for your product listings with our full-scale Amazon SEO services and Amazon Advertising Services. Our 360-degree Amazon marketing services enhance your Amazon ROI with significant customer acquisition.