Newbies often encounter the problem of high costs during Amazon operations. To solve this problem, you first need to understand the reasons for high costs. The following are the main reasons for Amazon’s high costs and the corresponding measures to reduce costs.
1. Reasons for Amazon’s high costs
Fierce competition: Amazon’s platform is highly competitive, with millions of sellers competing for limited exposure. Sellers increase advertising investment to stand out from the competition, resulting in rising advertising costs.
Keyword bidding: Amazon advertising adopts a bidding mechanism, and the competition for high-hot keywords is fierce. Keyword bidding continues to rise, which in turn increases advertising costs.
Improper advertising strategy: Some sellers lack market research and competitive product analysis when advertising, resulting in improper advertising strategies, poor results, and waste of advertising budgets.
Inadequate advertising optimization: Amazon advertising requires continuous optimization. Some sellers do not perform effective optimization after advertising, resulting in waste of advertising costs.
2. Measures to reduce costs caused by Amazon
Select keywords: Select keywords that are relevant to the product and not highly competitive to reduce keyword bidding, thereby reducing advertising costs. Use keyword tools for research and screening.
Optimize advertising strategies: Conduct market research and competitive product analysis to understand competitors’ advertising strategies. According to product features and target customers, formulate appropriate advertising strategies to improve advertising effectiveness.
Put advertising in stages: Divide advertising into testing, optimization and stabilization stages. Try different keywords and bids in the testing stage to find the best combination. Adjust according to data in the optimization stage and finally enter the stabilization stage.
Use advertising reports: Make full use of the advertising reports provided by Amazon, analyze the data to find out the advantages and disadvantages. Adjust advertising strategies according to the report results to improve advertising effectiveness.
Increase product conversion rate: By optimizing product detail pages, improving product quality and customer reviews, you can improve the attractiveness and conversion rate of products, thereby reducing advertising costs.
Consider advertising types: Choose advertising types that are suitable for products, such as Sponsored Products, Sponsored Brands, etc., to improve advertising effectiveness.
By combining the above measures, novice sellers can more effectively reduce Amazon advertising costs, improve advertising effectiveness, and thus better operate in a highly competitive platform.