Amazon e-commerce sellers are looking forward to good trends in the 2022 New Year. However, at the beginning of the new year, many sellers find that their advertising costs are burning every day, but the order volume is very small. Advertising costs are unaffordable for many small sellers! Today, let’s take sellers to see what has happened to advertising costs.
1. The cost of advertising per click increases, making it difficult for sellers to maintain it.
All Amazon sellers have experienced account suspensions. Since then, the practice of brushing orders has not spread among Amazon sellers. What’s left is that we can only advertise for a long time, and the competition mainly shifts to advertising.
According to an Amazon e-commerce seller for many years, advertising costs on the Amazon platform have been soaring since 2014. In 2014, the cost of a single click on an ad was approximately 14 cents (0.927 yuan). But now, a single click costs $1.60 (10.1302 yuan). For some average companies, this may cost $100,000 in advertising costs per year. Although the meat is painful, you have to spend the money.
If you don’t spend it, the product won’t get a good placement in the category of similar products. Of course, customers can’t find you. Of course, for sellers, it is impossible to obtain good data display and income. Therefore, for ordinary sellers, advertising is currently the best way.
2. Can sellers avoid burning ads?
Can sellers choose not to burn such increasingly expensive advertising costs? Yes, but if you don’t burn ads, you will die. This is the consensus of all Amazon e-commerce sellers. Therefore, if you still want to make normal profits on the Amazon platform, you still have to burn ads.
Because there are many sponsored product ads in Amazon’s organic search results, these ads squeeze out organic search traffic. If sellers don’t advertise, it’s hard for product listings to appear at the top of searches, and buyers see a bunch of paid promotional products.
In fact, sellers all know that if you don’t advertise on the platform, others will have better data than yours and be more profitable. So this is actually a must. If there are no sellers who don’t do this, they may really be waiting for the store to cool down.
The above are the issues related to advertising placement shared with sellers. I hope it will be helpful to sellers when they open a store. Lianlian Cross-Border Payment always pays attention to every little thing about sellers, and will also bring articles on related aspects in future articles to help sellers operate better.