Did you know that Amazon Sponsored Products could transform the way you sell?

by Sneha Nichani on 18/05/2016
Amazon.in is the most visited e-commerce website in India with tens of thousands of sellers, selling more than 5 crore products all across the country. Hence, as a seller it is very important to get your products noticed by buyers. How can you do that? The answer is, by advertising on Amazon. The sooner the buyer comes across your products, the more are the chances of you selling to them and making profits. You can get an insight on all the advertising on Amazon here.

In this post, we would like to tell you more about Sponsored Products and its benefits. As of today, Sponsored Products is one of the most used advertising products on Amazon. Thousands of sellers in India have registered and are actively using Sponsored Products to feature their products on the first few pages of the search results, to get noticed by shoppers and increase their product sales. Mentioned below are the benefits you get when you use Sponsored Products:

Chance to get on page 1 of Amazon Search results
Chance to deliver highly relevant and targeted ads and increase your sales
Get free impressions and pay only when your ad is clicked
Advertise to customers across all desktops, tablets and mobile
Start bidding from Re.1

So, how does Sponsored Products really work?

Let’s take an example of a ‘shoe’ seller who has registered for Sponsored Products.

The seller enters his seller central login details
He creates a Sponsored Products campaign for his products
He then selects keywords that are relevant to his products, such as sneakers, running shoes, etc., (Amazon can also help with keyword selection, through the automatic targeting option)
Seller enters a cost per click bid amount which is the maximum amount he is willing to pay
And selects the products he wants to advertise

So, when a shopper is searching for ‘Running Shoes’, and he types the keyword 'shoes' in the search bar at Amazon.in, several pages of search results are displayed. On page one, amongst the several results, he sees certain ads featuring shoes that have the word sponsored written on it. Once he clicks on the ad he is taken to the product detail page of that particular ad, that has the add to cart and buy now button. In this manner, products get viewed and the chances of sales increases.

Before you register for Sponsored Products and start using it, you should understand the various terms mentioned below, they will help you manage your ads effectively.

Impressions: The number of times your ad is displayed on a page, so a customer can see it.
Clicks: The number of times your ad is clicked by Amazon shoppers when displayed.
Spend: The amount you have spent on clicks on your ads.
Sales: The total product sales generated from clicks on your ads. Sales equals the total product sales generated within one week of clicks on your ads.
ACoS which stands for Advertising cost of sales (ACoS) is the percent of sales spent on advertising. To calculate the ACoS, the formula used is Total Spend ÷ Total Sales

To check the Sponsored Products eligibility criteria, click here. If you would like to go ahead and register for Sponsored Products, kindly click here, alternatively you can also click on the Advertising Tab on seller central and register for Sponsored Products.
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