Amazon Seller Strategies – PPC Advertising “Arbitrage”

May 4, 2022 Chuck Kessler

Amazon Seller Strategies – PPC Advertising “Arbitrage”

Amazon PPC Advertising Is Constantly Evolving. What Doesn't Change Is How Important It Is to Know (the Right) Data That'll Reduce Spend AND Add Sales

A successful Amazon PPC campaign requires a lot of agility and footwork. To be profitable, Amazon sellers need to be able to adjust their bidding strategies to maximize visibility and minimize spend. One main way of doing that is figuring out how to quickly and precisely shift ad spend from lower performing assets to higher performing assets. 

How do advanced Amazon sellers make sure that their PPC advertising is putting dollars in their pockets? According to CANOPY Management’s advertising wizard, Brian R Johnson, it’s a two step process: 

  1. First, know your (truly important) numbers
  2. Then, concentrate on net profit contribution 

Net contribution is an often overlooked element of an Amazon seller’s game plan. It factors in the profit that’s left after subtracting advertising costs. Advanced advertising optimization strategy involves redirecting your PPC budget to products that show a higher ROI (Return on Investment). After digging deep to identify your highest converting products, you then need to make sure they’re getting the traffic they need to really TAKE OFF! 

An Amazon Arbitrage PPC Strategy?  

There are many different ways to begin selling on Amazon. One of the easiest is through Amazon arbitrage. 

Using retail arbitrage, sellers purchase products from retail outlets (often at a discount) then turn around and sell those same discounted products on Amazon for a profit. There are no suppliers or manufacturers involved. It’s easy to get started and a quick way for many to start selling on Amazon. Sellers can later transition to another model once they’ve built up the “seed” money to do so.

When Amazon arbitrage is successful, it’s because smart sellers are able to take an asset that’s undervalued in one location, then using optimization and advertising strategies, bring a lot of attention to the very same product!

This post is going to highlight the way that clever Amazon sellers can do the exact thing with their Amazon Pay per Click (PPC) advertising. 

Your Best Products Are Hiding in Plain Sight

An Amazon arbitrage seller isn’t paying a penny in storage fees. That’s because their “products” are already stacked on store shelves or on an online catalog. As an eCommerce seller, the Amazon listings that you should be directing your advertising dollars towards might not be those that (at that moment) you’re making the most money from. Instead, there’s a good chance that your real best seller is hiding in plain sight. 

Retail arbitrage involves a lot of legwork with sellers sourcing the products on actual shelves in big box and other retail stores. Online arbitrage sellers take advantage of the vast online catalogs of these same businesses to do the same thing without all the driving around. 

If you’re an Amazon seller using PPC advertising to get your products the kind of visibility they require, the first step is taking a (much) closer look at the data. 

What Most Amazon Sellers Get Wrong

Amazon sellers are like most of us. They’re often blinded by success. As soon as entrepreneurs begin to dig into their businesses’ important metrics, they usually don’t get much further than: “what’s my top seller?” 

They should look deeper. 

Questions such as, “Are my products properly optimized?” “Where should I increase Amazon PPC spend?” And finally, “What’s the conversion rate?”  

The last question is the basis of the next part of this blog post. Because, that’s where Amazon sellers often receive the shock of their eCommerce lives. 

I’m talking about the moment when a seller realizes that they’re pouring money into a product that’s not converting nearly as well as others in their Amazon catalog . 

It’s Time to Realign Your Amazon Ad Spend 

Brian R Johnson likes to really drill down to look at three distinct sets of metrics. 

  • Impressions can give you a sense of your product’s overall visibility
  • The sessions and CTR (Click Through Rate) indicate engagement
  • The Conversion Rate translates directly to sales

When looking at impressions, they help tell whether or not shoppers saw the ad or listing in the first place. Most importantly, did the listing jump off of Amazon’s page and did the main image stand out. 

Sessions and CTR tell whether or not sellers really want to see your product and were they “seduced” by your Amazon listing.

Lastly, sales reveal if there was any hesitation in purchasing and was your listing able to clearly show the value of the product’s benefits.  

Amazon Seller Strategies – PPC Advertising “Arbitrage”

In his latest webinar, CANOPY Management’s Brian R Johnson continues to reveal strategies that experienced Amazon sellers have used to great success. 

He’ll show you how to look closely at your PPC data in new ways that will help you quickly make decisions that keep your hard-earned money in your bank account AND bring higher visibility to the products that really deserve it! 

Click here to watch the replay of the video, or simply click the image below. Amazon listing optimization and PPC spend go hand in hand. In this video, Brian will make sure that you not only know what lever to pull, but in what order.

That’s the part that may very talented sellers forget!

How CANOPY Management Can Help

That maturity of Amazon’s marketplace has made it a little harder for eCommerce sellers to be successful. If you listen to eCommerce podcasts, you’ll often hear the phrase, “treat selling on Amazon like a real business.” Everything from your Amazon listing optimization to your fulfillment require an increased level of sophistication to scale past a certain level.

That’s the main reason why there’s been such a big increase in the number of Amazon sellers taking a closer look at Amazon brand management.

CANOPY Management is a “full service” marketing agency for Amazon, and our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. When you consider the ways in which CANOPY Management is able to help you grow your Amazon business, you’ll know why.

  • Strategic Growth Planning
  • Listing Copywriting Optimization
  • Listing Photography
  • Product Videography
  • Advertising Management for Amazon
  • Customer Service
  • Demand Side Platform (Amazon DSP)
  • Amazon Posts
  • Full Service Brand Management
  • Amazon Review Aggregation

Are you looking to expand your income stream, or transition away from your primary career? It’s a new year and with the growth of eCommerce, now is a great time to reap some benefits yourself!

Ready to Grow Your Amazon Business?

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Chuck Kessler

I'm a western Colorado based trail runner, climber, surfer, and adventurer who loves to write. My focus is on eCommerce and technology as the Content Manager and SEO Strategist at CANOPY Management.