How To Use PPC Advertising on Amazon
28 Jan 2020 · 18 min
This is a podcast episode titled "How To Use PPC Advertising on Amazon" created on January 28, 2020. The content features Oliver Denyer as the sole speaker, providing detailed advice and strategies for Amazon sellers on overcoming common challenges, particularly focusing on pay-per-click advertising and product listing optimization. The episode includes a case study of a listener named Lorna, addressing her struggles with sales and PPC management, and offers actionable tips to improve product visibility and sales performance on Amazon.
Hey, how's it going?
It's Ollie here.
Welcome to the Ecommerce Freedom Podcast. Before we dive in with today's episode, I've got two cool resources for you. The first one is my new E Commerce Q and A group on Facebook. So in this group, the point is, you ask questions in the Facebook group and I answer them with daily videos, okay? So you can get your questions answered.
Really, really, really quick.
It's a great resource. If you go to ecommercefreedom.com and look at the top of the page, you'll see a button for the Q and A group. Click on that, it will take you.
To the Facebook group.
Second resource I got for you is an Amazon accelerator call.
So what I'd love to do with you is talk about your goals, talk.
About where you are now and talk about the stuff that could prevent you from hitting your goals right together on a strategy session, we will come up with a plan for you to replace your income with an Amazon business.
If you'd like to book a call.
Where we can do this, go to ecommercefreedom.com, look at the top of the page and click Amazon Accelerator Call. You'll be taken to a very short application page. You can fill that in on the next page. You should be able to book your call.
Alright.
Hope you really enjoy the episode.
Hey, how's it going? It's Ollie here. So there are two, two big roadblocks that most Amazon sellers encounter when they begin their journey building an Amazon business. The first one is when they're trying to find the perfect product to start with. Which private label product should they source? How do they find the perfect niche? And how do you get that confidence to send real cash, cold hard cash, to a supplier in the hope that your product will sell? That's the first roadblock. The second roadblock is when you've got all of this stock and you've made that leap of faith and you've got the products into the Amazon warehouse and you're sitting there and you're waiting for it to sell. This is the second roadblock most Amazon sellers encounter. And it can be even more scary than when you're looking for your product because now things get real, right? Your products either going to sell or it's just going to sit there and you will have wasted some money. So today we have a question from a member of Ollie's E Commerce Q and A group called Lorna. And Lorna is at the second roadblock in her Amazon business journey. So she has imported A product which, you know, props to her. That's incredible. You've taken the leap of faith, you've done it and you've got this far. That's, that's amazing. Most people don't. They think about building an Amazon business, they look forward to it, they think about all the benefits, but they never take action. So it's incredible that you've done this. So massive congrats. She's got some products in the warehouse and now she's struggling to get sales. She's trying to navigate the tricky world of pay per click advertising and she wants some help. So let me read to you what she said. So Lorna says, can anyone recommend anyone who can help me get sales and advice on ppc? That's pay per click advertising. So I can sell what I have to raise money to join this program. Right. So Lorna wants to get some coaching, she wants to get some more help and she wants to raise some, some cash by selling her stock. She says, I've got 17 reviews. Awesome. I've got 230 to sell and had a few sales in Germany. So first of all, the fact that you've got 17 reviews so far is incredible. Actually, getting reviews on Amazon is like pulling teeth. Customers don't really get that they're meant to review products. So what this results in usually is 1 to 5% of customers leave reviews and it's usually closer to 1%. So you have to sell a lot of stock to get a decent amount of reviews. Now there's some things that can help you, such as the Amazon reviewer program, which is great, can be very useful. You can also get friends and family to review your products, which to a certain extent can help as long as you're not making it really obvious that it's family because Amazon just won't approve the reviews. But the fact that you got 17 views is a great start. So onto the problem. She says she's got 230 units to sell. Had a few sales in Germany, but it seems like to me that the sales have slowed down. So I asked Lorna for a bit more detail and I said, how much PPC have you done so far? Give me some more details and I'll answer your question on tomorrow's video, which I'm doing today. Lorna says, when you say how much, what do you mean? My acos was really high but found some low price keywords and got it down, but only had 19 sales this month. I just don't know what I'm doing and I'm Leaking money. I launched end of October.
Right.
So it's a few months ago because we're in January now with a bundle. But I think I was badly advised and I feel a bit lost and desperate, to be honest, and would really like to recoup some money to join you. Somehow I need help somehow. Okay, cool. So first of all, the fact that you sold 19 units means that people want to buy the product, which is great. That's awesome. So that's one thing I would say. Another thing I would say is if this is your first import of this product, if it was me, I would have probably advised you to go in with smaller amount of stock.
Right.
So rather than 250 units. 50. Because there's always a chance to the thing that you import might not perform in the way that you think it will perform.
Right.
So if you take, you know, an amazing niche and you find all the problems of a product within that niche and you see all these customer reviews and stuff, and it looks like you know how to add value to the marketplace. Even if you do everything right, sometimes for whatever reason, customers just don't connect with your product and they just, for some reason it just doesn't work. And no amount of knowledge will prevent that.
Right.
And you could be the most experienced seller on the planet and you will have dead products. Like every Amazon seller tries products and you know, a certain percentage of them won't work. So we don't want to risk that. You do your first import, you spend a load of money on products and then, and then it fails. Now, I don't think this is happening because you've had 19 sales. So it's a good start. I would just suggesting next time when you import a product, maybe start with less units before diving in. But hey, look, we live and learn and the fact that you've taken action is incredible and only going to get better. So let's have a look and see what we can do to solve this problem. So after Lorna said that, I replied and said, okay, cool. What's your price point? How much have you spent on advertising in total? And have you done any other marketing? And Lorna said, I'll get the total cost together. I haven't done any other advertising at all. This is the only advertising she's done just to pay per click on Amazon. Lorna says, I have a discount voucher which funnily, no one ever used. I reduced the price to £9.99, but to get some sales then increased to 12.99. But then back down to 9.99. Not made any sales except for in Germany, which was 16.99, which is what I need to make profit. Salana says I'm in panic mode. I guess I need to increase price and get some sales advice which I'm happy to pay for. Alright, so I'm happy to give you some advice today for free. And hopefully this will help you sell out some of your stock. And hopefully this will help out a load of other people who might be in the group in a similar situation who also want to sell some of their stock. So this is my strategy for getting a product to sell consistently. So first of all, this assumes that you've got a great product in a great niche and the customers like the product. Okay? All of those things have to happen for this to work. But as you've made quite a few sales, I would assume that those things are in check. So first of all, what I do is I make the listing look incredible. I make the listing incredible. We want it to be better than any other listing of any of the competing products. So have a look at your competitors, have a look at their listings, have a look at their photos, their title, their bullets, their description. They're the four things we want to examine. How can you make your product stand out? I recently helped a client import a product and he actually did have a big differentiation point between him and his competitors, right? He was bundling his product with something else and, you know, no one else was really doing that in his niche. But if you look at the main photo that he put on his listing, you would never know. And this has happened with so many clients I've helped. They'll import an incredible bundle of stock, but the customer doesn't know that it's a bundle. They have to do research in depth research into the listing to even find out that you get the main product and you get another product for free with it. So here's what you have to understand about customers, right? Customers aren't idiots, they're very smart people. But when they're looking at your listing and your marketing, they act like idiots, Right? Why is that? Well, it's because when someone's looking at marketing or advertising or deciding to buy something, they're not putting 100% of their brain power into that decision, right? If you imagine like when, when we are buying stuff on Amazon, what's happening? Well, usually me, I've got my laptop on the kitchen table, my girlfriend's cooking and I'm probably irritating her, right? While she's Trying to get things done. There's a million other things happening around me while I'm deciding whether to buy a product. And you know, I've got one eye on the product and another eye on the other side of my house. And I'm glancing for a couple of seconds at the listing before I decide to buy on it. So if something isn't blatantly obvious jumping off the page at me about a product, then I'm not going to notice it. I'm only going to notice maybe 5% of the stuff on the listing that they've written about and I'm only going to notice the stuff I care about. So we want to throw all of the best stuff about your product in the customer's face, alright? So there's no chance, Even with the 5% of brain power they use, they could miss it. So this all starts with your main product photo. Make sure it's like blatantly obvious that you have your main product and your bundled product. What I like to do is have a main product and then Photoshop in like a red plus symbol, okay, next to it. So the main product photo plus symbol and then your free product photo next to it. So you can see you get this plus this, right? As if you're speaking to a chimpanzee. It's like this thing plus this thing, right?
Then they can't miss it.
That's the photos done. And then the rest of the photos illustrate to the customer how is the product going to be really useful in their life. So I like to do things like detail product photos where there's a photo, arrows pointing to all the cool things in the product and then a bit of text writing about them as well. I like to do lifestyle photos. So Photoshop in your product into a situation. So if it's a bottle, have somebody working out, holding the bottle, or have the bottle inside a rucksack or whatever it is something that illustrates how your product will fit into their life, right? And just the photos are a big, big, big deal. Then the title, make sure it's really clear in the title that you get your product plus free whatever it is that you're bundling with it. Again, act as if you're talking to a chimpanzee. You've got to get their attention. Bullet points. Make sure you've used up every single character on every single one of the bullet points. You don't just want to use up half of the character space. Use up all of the character space. Put capital letters in a headline in the Start of every single bullet. So it grabs people's attention and they read on. They won't read all your bullets, but they might see something that they care about the product has that they want the product to have in one of the headlines of your bullets. And then they'll read the whole bullet because that's something they care about. The description. You should have a paragraph that paints a picture in the customer's mind of how your product going to make their life better. If you can get a customer emotional at any point, do it right. We buy things on emotion and we justify our purchases with logic. We don't buy things logically. We make the decision emotionally and then we think, I really, really want this thing. And then after that we try and find logical reasons why we shouldn't spend the money. And if you have, you know all of the details about why your product is so great on the listing, after they've got emotional, they're like, I want this. Then they'll justify their emotions that they feel to wanting to press the buy button with all the detail. That's how, that's how sales works. Make sure there's a call to action at the bottom of your description as well. The way I like to do this is add this amazing product, whatever it is, add this water bottle to your cart and instantly make your workouts better or make your workouts much more fun by adding this water bottle to your cart today. Okay, so we're associating a benefit with adding the product to cart again, making it more emotional, letting the customer see how the product will benefit their life. Alright, so that's the listing. We want to get the listing perfect. Otherwise you're throwing money down the drain when you advertise the product. Because most customers aren't going to get why your product is so good. When that's sorted, then we just want to pour as much cash as we possibly can into your product to get it to page one. Okay? That is it. So we don't want to make a profit. We're not looking to make a profit in the beginning. We're just looking to get your product ranked. So that's when, when you've got your listing perfect, you can throw a ton of money into pay per click advertising. Ignore the ACOs. Just get it ranked, okay? Obviously you can improve the ACOs and you can take out negative keywords and you can test different campaigns. But we're not trying to make a profit right now. We're just trying to get the product lifted up. The search results, okay? Then once you've done this, you can also throw in some promotions into the mix. You can use Amazon's own promotions service, or you can use a service like AMZ Tracker where you just give products away for free to their VIPON audience. Bunch of people who just want cheap stuff, right? They will email their audience and say, hey, here's a coupon code for this. And they'll go get it for free. And what this does is this. This actually helps your product get even more ranked. The more sales that happen on your listing, the higher up the search results. Amazon will place your product because to them it seems like, wow, we've really got a product here that people want. So do everything. You can, spend a load of money on pay per click, give away some of your products as promotions and get your product to page one. When it's on page one now, you're in the promised land and you'll start to see sales that don't cost you any money, sales that come from organic search results. So if you're selling a water bottle, someone types in water bottle, your product comes up on page one, they'll search, they'll click, they'll buy. It won't cost you any marketing money. So what you can do then is see how many organic sales you're getting and you might be able to turn off the pay per click for some amount of time. This is when you start to get profit, okay, because you're not spending any money to get sales. You're getting sales for free, essentially, and you get to keep all the margin. So all the loss that you've made getting your product to, to page one will start to get recouped. Now with 230, or was it 220 units in the warehouse? By the time you get to page one, you might not have too many units left. Let's say you have, I don't know, 100 units left or something. You might just make a little bit of money with this stock. You might break even or you might make quite a bit of profit. But then you got to think about restocking and getting some more units sent into the warehouse. Now every niche is different. It depends on the product. It depends on, you know, like how competitive the niche is and things like that, which is why we want to test a bit smaller first and future. However, you should be able to get rid of all your stock. If you've made 19 sales in a month, then it's very, very promising. So try these steps. Lorna, what I would love for you to do is take action on this and then post in the group and let us know how you get on. Hopefully we can report with some good news and do an update so people can see the effect this had on your business. All right, so hope today's video was enlightening for you. Hope you got some useful takeaways from today's session and got a little bit clearer on how to get stuff to sell, which like I said is the second biggest roadblock for Amazon sellers. And yeah, it's been fun outlining all this stuff. So if you've watched this video outside of my Facebook group, then the reason Lorna got this video made for her is because she asked a question in the group. So if you want to join, click the link above or below the video. You can ask questions in there and I'm answering them on daily videos so you can get help and advice about your business. So thanks so much for watching this video and I'll catch you very soon.