Amazon's Sponsored Ads Waste of Money


#2

IMO if you have zero sales of a product on Amazon without doing additional advertising, the product probably isn’t in demand in the first place. Either it’s not a popular item or it’s not priced competitively. I’ve never done additional advertising and I still get sales as the products are in demand and priced competitively.


#3

+Any+ sponsored ads, for smaller sellers, are +usually+ a waste of money. We stopped all advertising, entirely and suffered no loss because of it. We actually gained, since we are not throwing hundreds of dollars away on clicks anymore.


#4

Sponsored ads are only good if you are selling a new product with very little brand awareness. we only Use Sponsored ads to sell the items that we bring to market, as for national brand Items I never use Sponsored ads unless we are the exclusive seller for that item. They can work very well if used correctly. If not your are right you will just be throwing money at the wall


#5

I would also add products with too much competetion as a reason for a product not selling well, even if demand is high. A lot of sellers have posted wondering why their phone cases, usb cords, private label supplements, etc. don’t sell.

When there are thousands of listings for what is pretty much the same product with a different private label brand at similar price points, demand is spread out.

Sales tend to go to established sellers whose products show up first in searches or category browsing due to higher rank because of sales history.


#6

I’d Think it would depend on what you’re Selling…

Is it a Hot Item or Just some Ordinary Stuff…


#7

I have no reviews and the item is ranked low a great seller I use sponsored ads to improve the ranking I just want to know is there a formula or guideline to use so we know how to structure the cost per click and so we are not wasting funds on these ads


#8

We are small seller and have very good experience with sponsored ads. At the end of it the product you sponsor needs to be in demand and priced competitively to be successful and advertising is there to make your item easier to find for buyers.


#9

the cost is not the only consideration. you should check the impression and clicks. If the impression was great and click also great but no sales, it possiblely your ads did not reflect the right position of your ads, or your listing quality was bad, poeple will not buy when you put a unclear images or bad desceptions.


#10

I did a large campaign with amazon about 100,000 for 2016 and at the end it made 100,000, just broke even and that doers not count the shipping cost or the cost of the product. no one gets rich on amazon sponsored other then amazon


#11

I don’t normally post but if you do your research, price competitively Amazon Sponsored Ads work. I don’t know how you are setting your ad up but if you are new to it do not set it manually. There are lots of videos to watch to help you. But if you spent as much as you say and did not make any money. There is something else wrong. Watch the videos for help. Good Luck to you!


#12

Do you think your price is reasonable?


#13

Amazon has an entire series of video on the seller central site – you might start there.


#14

That’s just truly sad. How could you spend a thousand dollars before you figured out if an ad campaign wasn’t working at all. I mean, it can take that much to figure out that it’s not profitable after taking COGS into account but spending $1,000 without a single sale is just bad campaign management.

You should always run tests in advertising campaigns first. For new campaigns we always run them with a small advertising budget. Sometimes as little as $5 per day. We check up on them every few days to see if we’re getting views, clicks and sales and then make necessary adjustments.

Currently, we have about 20 campaigns running and they are all profitable because they are all targeted to specific groups of products or brands and the amounts we pay vary depending on the type of products and how profitable they are.

One example I can give that was a complete failure was for some of our DVD titles. We were getting tons of clicks but not a lot of purchases and our costs were too high a percentage when compared to sales so we ended the campaign. It cost us about $100 to figure out that it just wasn’t going to work out. But even then we were getting sales, it just wasn’t enough to justify the investment.

I think you really need to look at your campaign(s) and figure out what it is that you’re doing wrong. One recommendation is always select custom search terms. Use google or some other service to find good search words. You will get much better results if people who are clicking on your ads are actually interested in the products you are offering. Also, if you have one great product it can be best to have a separate campaign just for that one product.

Amazon’s Sponsored Ads can definitely increase sales if done properly.


#15

imo, ebay’s sponsored offer is a much safer investment as you bid per sale instead of bid per clicks as you don’t care about how many click you get, you care about how much sales you get.
with that said, I am still pretty profitable with my amazon sponsored offer.


#16

I couldn’t agree more. I’m not sure how much value was in most of those answers. Thanks for adding some quality detail.

I would only add that after you run a campaign with some budget attached to it, maybe for two weeks, you need to pull up the “Search Term Report” under the Reports tab. The key words are good for research, but it is the search terms that customers are using to find your product. Once you use that report to find out which search terms are giving you good conversion, those search terms should be added as phrase matches in a new ad group within the same ad campaign.


#17

Bravo!!


#18

You can spend thousands to advertise moldy bread. In the end nobody is going to buy moldy bread.


#19

Your original question was, is there a program to help you learn Sponsored Ads. Yes, there is: check out Brian Johnston’s ‘Sponsored products Academy’ and the associated PPCScope product.


#20

Man, some of the childish, sophomoric responses in here… its when I read these types of responses, i’m reminded why Amazon outsources all their seller support overseas and could care less about the lot of us… to the few sellers in here who offered advice, cheers to you for trying to offer value.

To the OP, when dealing with PPC (pay-per-click) campaigns, micro-testing campaigns to get your conversion ratio as high as you can while minimizing the costs is the real trick.

• Always start with long tail keywords as their CPC will be the lowest.
• Be sure to filter out negative keywords and other discrepancies to ensure there are no wasted clicks.
• Set daily limits of no higher than 10$ when testing campaigns.

• Use googles keyword tool so you can pick keywords based of trends (go back 1-2 years but no more).

After you have done this and have managed to create a profitable campaign, THEN its time to scale the campaign by opening the flood gates and allowing larger volumes of traffic through.

There is always the notion that your product may not be in demand, priced competitively, ECT… but before your listen to pits of negativity and amateurism by some members (not all) in here, perform your own diligence and cross all the t’s and dot all the i’s during your “testing phases” as specified above to reach such conclusions on your own.

Best of luck.


#21

My lifetime spend (about 2 years) is $2808, with $223,869 in sales. I keep it low, usually about .02$ per click. Some items have fantastic payback, some zero.