i started advertising a pull up bar lately and to get to first page as sponsored product CPC gets around 3-4$ is this normal? i am spending about 50$ to sell 30$ product its crazy am i doing it wrong?
Well, it’s not like a pull up bar is an innovative product. I’m certain that there’s a huge amount of competition.
On Amazon as with FB, IG, Google or any other platform. Your PPC costs are influenced by relevancy and history. If you’re a brand new seller for a product with no sales history selling it, you will be paying the highest CPC in auction to win the placement.
The key is to get that first conversion / sale. At that moment, the algorithms now have data or “know” your ad generated money. As you continue to generate conversions, your CPC will decrease because your ad has more value. The better your ads convert, the more money the platform makes.
There are few controls with Amazon Ads (or eCommerce platforms) compared with that of FB, IG or Google. That’s because the person buying your product is not your customer, it’s Amazon’s.
If for example you were advertising the same product on FB (to your own website) you would not only be paying a far less CPC, but you’d have much more control over who sees your ad and hopefully you’d achieve a better ACOS.
Remember, on Amazon you pay per click if someone clicks your ad and goes to your product page, but once there the customer is given numerous options to choose other products.
There is a reason all of these ad platforms are self managed. A newbie will spend hundreds if not thousands of dollars before they figure it out, if they do at all.