Amazon Product Ads Review

Amazon.com is the largest online retailer in the game. They sell every class of product imaginable, and they offer a number of services for both affiliate marketers and unaffiliated vendors and retailers. Amazon Product Ads is a cost-per-click advertising service that allows ecommerce retailers to direct Amazon’s millions-strong customer base to our own storefront websites.

Amazon Product Ads can drive new customers and increase sales at your ecommerce store

Amazon Product Ads: How it works

What APA isn’t

From the ambiguous name, it’s not plainly obvious what a service called Amazon Product Ads might do. Amazon Product Ads does not refer to ads for products sold by Amazon, nor does it refer to products being sold through the Amazon Associates affiliate program. Amazon Product Ads is also different from the Amazon Marketplace which allows third-party vendors to sell items directly through the Amazon.com site.

Amazon Product Ads direct Amazon shoppers to your own store’s website

Amazon Product Ads

Amazon Products Ads is a service that allows third-party online retailers to advertise their own product catalog in front of millions of Amazon shoppers.  These ads are displayed in an “Available at External Website” section of product pages, and they also show up on certain Amazon search results.  When a shopper clicks an Amazon Product Ad, they are taken to the product page at the third-party retailer’s own site.  This means that smaller retailers can acquire new customers (and repeat orders) from the world’s largest shopping website.

 

You pay a CPC, not a sales percentage

Unlike Amazon Marketplace, with Amazon Product Ads you do not pay a portion of your sales revenue to Amazon.  You don’t pay for ad impressions either.  These ads work on a CPC (cost-per-click) model, similar to Google Adsense and other search marketing programs.  You are able to define the maximum price you will pay for a click, as well as daily and monthly budgets.

Why would Amazon divert shoppers from their own site?  APA makes Amazon one of the most effective comparison shopping engines

The Amazon Product Ads service puts Amazon in competition with dedicated comparison shopping engine (CSE) sites, such as Nextag, Shopping.com, Pricegrabber, Google Shopping, and Become.  These sites help shoppers feel assured that they are making the right purchasing decision, and Amazon doesn’t want to be left out of this game.

Testing reveals that in terms of profits for the advertiser, Amazon Product Ads compares quite favorably to other shopping engines.  While the Amazon ads typically bid at a higher CPC rate, eager Amazon shoppers make up for this by returning a higher sales conversion rate, which results in more revenues and a better return-on-investment (ROI).

Thus, we highly recommend for ecommerce stores to experiment with listing their catalogs or specific products with Amazon Product Ads.  Amazon currently accepts without restriction products that fall into these categories: Baby, Computers, Electronics, Health and Beauty, Home, Home Improvement, Office, Sports, and Toys.

It’s worth a shot: get started with $75 in free clicks

Amazon is right now offering a great incentive to test out their Product Ads service: $75 of free clicks once your campaign goes live.  Check out the Amazon Product Ads homepage for more information on pricing, case studies, FAQs, and special offers.

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