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Amazon has truly changed the way we shop. It has become an integral part of our lives, allowing us to purchase almost anything without ever having to leave our homes. From clothes, books, electronics, and more - Amazon has it all! This is why it's no surprise that 80 million Americans are Amazon Prime members - that's more than the number of people who live in Australia and Brazil combined! It's no wonder that Amazon has become a desirable platform for businesses to advertise on.

However, with so many different options, getting started can be overwhelming. That's why we've created this ultimate Amazon Advertising guide for beginners. This combined with our comprehensive Facebook Ads for Amazon products guide can prove to be the competitive advantage you're looking for. Let's jump-start your journey into Amazon Advertising.

In this comprehensive guide, we'll cover the following topics:  

By the end of this amazon advertising guide, you will have a thorough understanding of the basics of Amazon Advertising, and you'll be ready to launch successful campaigns to help your business grow. Get ready for success!

Understanding the Basics of Amazon Advertising  

At its core, Amazon Advertising is a pay-per-click (PPC) advertising platform that allows businesses to promote their products on the platform. This means that when a potential customer clicks on your ad, you’ll be charged for it - hence the term “pay-per-click.”

Ads are displayed in the form of sponsored product listings, banners, and other forms of display ads that appear on product pages, category pages, and search results. Amazon Advertising also allows you to target specific customers with ads based on their shopping behavior, interests, and demographics.

Amazon Ad Types

There are two main types of Amazon Ads that you can use to promote your products.

Sponsored Products  

Amazon Sponsored Products are the ads that appear on product pages, search results, and in banners. They help increase visibility, drive traffic to your items and increase visibility for related queries. You can target customers by the keywords they use in their searches, product category, or brand name.

Sponsored Brands

Amazon Sponsored Brands are the larger ads that appear at the top of search results. These allow you to use images, logos, and text to create a more engaging ad. In addition to increasing visibility and sales, they also help build your brand identity, recognition, and trust among buyers.

amazon sponsored brand ad

In addition to search ads, Amazon also offers Sponsored Display ads and stores. These are more advanced and require more resources, but they can be very powerful when done correctly. If you're a brand looking to grow your product on Amazon then SwiftStart can assist you to achieve your business goals. You can schedule a free Amazon account audit and talk to our experts now!

Here's an example of what sponsored display ad looks like.

amazon sponsored display ad

How Does Amazon Advertising Work?

Amazon Advertising is an auction-based system similar to Google Ads. This means advertisers compete with each other for ad placement, and the highest bidder wins. Each time someone searches for a keyword related to your ad, Amazon’s algorithm will determine which ads are most relevant and display those at the top of the search results. The amount you pay for each ad is based on a combination of your bid and how relevant Amazon believes your ad is to the search query. It’s important to note that higher bids don’t always guarantee placement, as relevance still plays a major role.

Now that we’ve covered the basics of Amazon Advertising, we can move on to setting up a successful campaign.

Setting Up A Campaign for Success  

When setting up your campaigns, it’s important to have a strategy in place. Here is a simple breakdown: 

Determine your Goals 

Start by defining the goals of your campaign. What are you trying to achieve? Are you looking for more visibility, traffic, sales, or all three? Once you know what you are trying to achieve, creating campaigns tailored toward meeting those goals will be easier. Amazon allows you to set your metrics and KPIs, so select the right ones that align with your objectives. 

Research Your Audience 

Know who your target audience is and what they are looking for. This can be done through keyword research, analyzing competitor data, or surveying existing customers. It’s important to understand the customers you are trying to reach so that your ads can be tailored to fit their needs. 

Create Engaging Ads  

Once you have your goals and audience in place, it’s time to start creating ads. To do this, use high-quality images, copy, and calls to action that will help draw attention to your products. Also, use relevant keywords throughout the ad, as this will help with relevance and impressions. 

Test and Optimize  

Finally, test your ads to see which ones work best. Amazon offers a wide range of performance metrics that can be used to track the success of your campaigns. Make sure to keep an eye on these and continuously optimize your ads to ensure the maximum amount of success. 

By following these steps, you can create powerful Amazon Advertising campaigns that will help drive more visibility, traffic, and sales. Whether you are just getting started or already have an established presence on Amazon, these strategies can help your business succeed.

Here's another comprehensive guide on Amazon 1p vs 3p to assist you in choosing the best way to sell on Amazon (according to your brand/business goals).

Five Common Mistakes Brands Make When Using Amazon Advertising 

In this Amazon advertising guide, we have discussed the basics of how to create successful campaigns but it's also important to avoid certain mistakes while setting up those campaigns. Here are five common mistakes brands make while running advertising campaigns on Amazon.

1. Not Utilizing Negative Keywords 

Negative keywords help narrow your campaigns' focus, ensuring you’re targeting customers interested in exactly what you offer. Not utilizing negative keywords can cause your ad to be seen by those that don’t match your target audience, leading to unqualified clicks and wasted spending. 

2. Not A/B Testing 

Many brands make the mistake of settling on a single campaign strategy and not testing others. A/B testing allows you to compare different elements of your campaigns, such as the headline and image, to see which works best. A/B testing helps you optimize your campaigns for the highest possible ROI. 

3. Not Taking Advantage of Automation 

Automating your campaigns helps to ensure that you’re always getting the best results from your Amazon Ads campaigns. Automation can help you optimize bids, create audiences, and more so that you don’t have to spend time manually managing each campaign. 

4. Setting and Forgetting Amazon Ad Campaigns 

It’s important to analyze and optimize your Amazon Ad campaigns continually. If you launch a campaign and don’t review the data for a few weeks, you could be missing out on valuable insights that will help you improve the performance of your campaigns. 

5. Not Running Ads Year Round 

Many brands make the mistake of only running their Amazon ads around holidays or other relevant times of the year. However, running campaigns throughout the year can provide valuable insight into seasonal and keyword trends. Not only can you identify what works, but you can also use that knowledge to inform how you might promote unexpected products or services. This can help you get more out of your campaigns, so don’t miss the opportunity to run ads year-round on Amazon.

By avoiding these common mistakes, brands can maximize their return on investment with Amazon Ads. Book a free Amazon account audit and let us help you grow and scale on Amazon within 60 days.

Amazon Advertising Guide - The Verdict 

Amazon Advertising is a powerful tool that can help brands succeed on the world’s largest eCommerce platform. By utilizing relevant keywords, testing, and optimizing campaigns, and avoiding common mistakes, you can create effective Amazon Advertising campaigns that will drive more visibility, traffic, and sales. We hope this amazon advertising guide has given you a better idea of how to use amazon advertising to create successful campaigns. Get in touch with one of our Amazon experts if you have any questions about Amazon advertising or want us to do a free 1-to-1 Amazon account audit for you. Check our Amazon Podcast and get exclusive insights on how to make Amazon work for you!

Check Out the Most Commonly Asked Questions About Amazon Advertising 

What are the different types of Amazon ads? 

Amazon offers several ads, including sponsored products, sponsored brands, headline search ads, and display ads. Each ad type serves a different purpose and has different targeting capabilities. 

What are the benefits of Amazon Advertising? 

The primary benefit of Amazon Advertising is that it offers access to millions of potential customers. Amazon Ads are also a great way to increase visibility and brand awareness as well as drive sales.

How do I optimize my Amazon Advertising campaigns? 

Optimizing your Amazon Ads is an ongoing process. You should continually evaluate the performance of your campaigns and adjust the settings accordingly. You should also take advantage of automation, A/B testing, and negative keywords to ensure your campaigns are optimized for the best results.

What are the 3 types of Amazon PPC campaigns? 

The three types of Amazon PPC campaigns are Automatic Targeting, Manual Targeting, and Sponsored Products. Automatic Targeting uses Amazon’s algorithms to target the most relevant customers; Manual Targeting requires you to select keywords manually, and Sponsored Products allow you to promote specific products.

Amazon partners with you no matter the way you choose to grow your brand on Amazon. There are various ways by which you can sell on this platform including Amazon 1P, 2P & 3P. In this blog we are discussing the two of them; Amazon 1p Vs 3p. 1P is handling everything on single and seamless transactions with Amazon.com and it does look tempting. But most sellers prefer delivering products directly to the customers with 3P sales. The 3P model lays the groundwork for diversifying into other marketplaces, offers greater freedom, and can be much more profitable.

When it comes to Amazon 1P vs 3P, deciding between one depends on the infrastructure you establish, processes regarding how involved you want to be, and how you set up your logistics.

What Is Amazon 1P?

Vendor Central or 1P is considered the fastest as well as the most convenient way to sell on different marketplaces like Amazon or Walmart. It is also the most traditional method.

In 1P instead of creating listings on Amazon, you sell your products directly to the company. Amazon itself negotiates a wholesale price for your products, picks them up, and lists them. The platform controls the listings, sets up the price accordingly, and makes decisions regarding whether or not to make another purchase or when.

Pros

1P marketplace offers many benefits for manufacturers:

Cons

What Is Amazon 3P?

Amazon 3P or Seller Central means selling directly to customers through the Amazon marketplace. It involves taking your products to Seller Central and listing them directly so that consumers can buy them. Using 3P, you can earn more but at the same time, you'll have to expand the infrastructure to handle logistics. Manufacturers today prefer to sell directly and 3P marketplaces are extremely vast.

Pros

3P sales offer more to manufacturers:

Cons

For 3P you need a more hands-on approach which is the reason most brands avoid direct sales. Some of the challenges that manufacturers face with the 3P marketplace model are:

Amazon 1P vs. 3P

Amazon 1P vs. 3P widely depends on your brand or organization and how much you want to be involved in the processes. 3P sellers have to handle things like direct marketing, logistics, and customer service. It needs greater business investment and things are also complex. However; in the long run, it can result in larger profits. Here’s all you need to know regarding Transitioning from 1P to 3P.

  1. Freedom to Diversity

Amazon 3P means you control being delisted and pricing. It means you can sell on other marketplaces. Diversifying across different marketplaces offers greater business security because if you face any issue regarding a marketplace or your seller account, you can still be secure on other sales channels.

Contrary to that 1P sellers are bound to a single marketplace, because there is a risk that you might get delisted elsewhere if you're selling the same products for a lower price on Amazon.

  1. Time vs. Money

With the 3P marketplace model the time expenditure goes up per sale, but with that profit per sale also increases. On the other hand, 1P reduces your hassle but cuts into margins simultaneously. Even if you're selling via 3PL like Amazon FBA, you still need to invest resources into building your infrastructure to prepare and ready your package for FBA.

  1. Control Over Brand

Selling via 3P means you have to handle product presentations, listing updates, or other alterations which need you to keep everything up to date, invest in merchandising, and create listings.

Contrary to that, if you sell your products directly to Amazon, you can provide marketing material. product descriptions, etc., upfront. After that, your product is in Amazon's hands. However, Amazon still charges for merchandising and you'll have no control over listing updates, product presentations, etc., even with the changes in your product.

Conclusion

1P focuses on seamless transactions with Amazon and there isn't any hassle as you give up almost all control of your sales to the marketplace. The 3P model needs more work to set up. However, there's freedom for expansion and you keep control of the business. Take the time to weigh the pros and cons of each model and then decide which one suits you the best.

Check our comprehensive guide on how you can easily grow your brand on Amazon with the expertise of SwiftStart.

Both Amazon 3P and 1P marketplace models have their own benefits and drawbacks, making them great options to sell on Amazon. The trick here is to evaluate each method and determine which one fits your requirements the best. You can always benefit from the new Amazon customer engagement tool to send email campaigns, keep customers engaged with your store, offer discounts & coupons, and educate customers about your brand.

If you need any help regarding Amazon 1P vs 3P revenue or which is the best Amazon-selling model, you can consult SwiftStart. Contact us today and learn how our team provides Amazon expertise to optimize your Amazon brand presence.

Related Questions to Amazon 1P vs Amazon 3P

What Is Amazon 1p Vs 3p?

In a 1P relationship with Amazon, your brand acts as a wholesaler selling products directly to Amazon as a retailer. It is basically a "Brand-as-Supplier" relationship in which Amazon buys products from you, sells them, and owns all the communication with the consumers to complete the sale. 

Whereas in a 3P relationship with Amazon, your brand directly sells the products to the customers using the Amazon marketplace. You are responsible for everything including listing products, shipping to fulfilling orders to offer excellent customer service.

Can A Seller Use Both 1P and 3P Selling Models?

Yes! sellers have the option to sell some products on Amazon and some products to Amazon. Many sellers on Amazon prefer a hybrid approach, where they benefit from both 1P and 3P features. Products that don't perform well in a 1P setup can do better under 3P. It is also an excellent way to test new products.
If you’re in search of an Amazon success partner, you have come to the right place. SwiftStart (https://swiftstart.com/) offers a team of experts behind each of your products, maximizing your success. Get in touch for a free one-to-one consultation.

If you want to boost your sales, Facebook ads for Amazon products are an ideal option. Create a community on the Facebook platform to converse with about your Amazon products and you’ll be surprised to see how much more traffic you can pull on your Amazon store. Through detailed targeting, sellers can attract a lookalike audience and users who are more likely to purchase. However, running Facebook ads for amazon products is a tricky task, especially if you are not aware of the nuances.

In this article, we’ll guide you through the know-how of creating Amazon Facebook ads and how you can enhance your product visibility and drive more sales. With these practices, you won't end up wasting your social media ad spend.

Why Facebook Ads?

Before moving forward, let’s find out why you should care about Facebook ads in the first place.

Facebook is a great social media platform to enhance your Amazon business in different ways and the most crucial one is external traffic. Acting as an additional sales channel, the platform opens up your products to a much wider audience. It also increases the probability to make a lot more sales as compared to using Amazon itself alone. With more than 2.93 billion users on Facebook all over the world, you can make your product reach about anyone.

With the new sales channel and increased audience, you can not only grow your cash flow and sales but your ranking on Amazon as well. Amazon also tends to prefer products that get sales from different traffic sources. Traffic from diverse sources is a sign of popularity and Amazon gives popular products more visibility compared to others and places them higher on Amazon search. Higher rankings on Amazon lead to more organic traffic and thus you get incredibly valuable organic sales.

Another reason to prefer off-Amazon traffic sources like the Facebook channel is that it allows you to build your own customers. When you’re selling on Amazon, you don’t get your customers. The customers are buying the product from Amazon. Amazon collects their contact information and can market to them directly. The platform can also take away your customers at any instant.

You can’t get any kind of contact information for people who buy from you through Amazon. The only way you can get their information is to have them first on another channel and get their phone number or email before they reach Amazon. Once you have a customer list, you can use it for email marketing, audience building, or even selling on your own site. Thus, you can put your business in a much more stable position.

Things You Need for Amazon Facebook Ads 

There are different things you need first before getting into how to place Facebook ads for amazon products:

On your landing page, always include a link to your privacy policy as some buyers are cautious about giving their emails to Amazon sellers before they buy a product.

You can also include other links that lead the customers toward your other products or to your personal website. All these links must be relevant to your products and services.

How to Run Facebook Ads for Amazon Products That Move Needle?

Facebook ads need experience. Beginners can run into some common mistakes, setting them back and resulting in a lot of wasted ad spend. Below are some keys for a positive ROI, even if you’re totally unfamiliar with Facebook ads.

  1. Product Page Optimization

One of the biggest mistakes Amazon sellers make is running ads on a product page that is not properly optimized. It is just a waste of ad spending. Moreover, you might also end up driving traffic to your competitors.

Before running paid ads for your Amazon listing, ensure that the page is optimized for conversions. Your listing copy must be easily readable and vividly convey your product’s use cases and benefits. Also, images must be clear and show the product in a good light. If your listing is just stuffed with keywords, you are just going to lose traffic.

  1. Qualify Your Audience

People tend to make a sales funnel as short as possible, such as a Facebook ad with a link to the Amazon product page to get as many conversions as possible. But that’s not a good idea. 

The traffic on Amazon is of very high buyer intent. People come to Amazon when they want to purchase something. It means the average conversion rates are extremely high on Amazon as compared to any other online platform. Therefore, when you send traffic to the product page from outside Amazon, that traffic often converts at a lower rate as compared to the average conversion rate on Amazon. Thus, when you send people right to the product listing, it hurts your overall conversion rate.

So, unless the traffic you’re sending has a higher buyer intent, you need to use an intermediate step, like a Messenger bot or a landing page. Use this intermediate step to give more information about your product before giving a link to Amazon. People who are not ready to buy and were mildly interested will leave at this step, never actually reaching Amazon. While others with the intent to buy, click through the product page. It gets you a higher conversion rate sending a positive signal to Amazon.

  1. Gather Contact Details

Driving traffic from outside Amazon helps you collect contact information of customers and you can build a list. While running Facebook ads, don’t miss this opportunity. Facebook ads are expensive and it is quite tough to run ads to make a profit while keeping pricing competitive on Amazon. 

But the value you get in return from Facebook ads is more than just a dollar in profit. Each email subscriber you get can offer a certain amount of value in the future and that’s where your ad spend investment is going. You can build out your Facebook ads funnel as follows:

  1. Offer Discount

A lot of popular Amazon marketing agencies focus on this a lot. When we are on Facebook, we see a lot of ads. People scrolling on Facebook are also very rare in the buyer’s mindset.  You need to grab their attention by providing something that makes your ad stand out and makes the mindlessly scrolling person want to buy your product.

A discount is a great way to get the audience’s attention and it is a valuable step while learning how to do Facebook ads for amazon products. People love discounts. An ad saying “Get 25% off on a Product” is much more effective than one just saying “Buy this Product.” By offering discounts, you give your customer a real incentive to click through, and there is less dependency on the features and benefits of your product to convince them.

  1. Test and Optimize

Another Facebook ads misconception is running a campaign for a short time, observing few results, and claiming that the channel is a failure. Facebook ads need a number of testing and optimization and with that, you can improve your results and also cut down the costs over time. You need to test certain things like different images, audiences, different styles of copy, and even different funnels such as Straight to Amazon vs Messenger vs Landing page. Then see which ones are bringing you the best results.

For this, you need a decent amount of budget to play with before getting into Facebook ads for Amazon products. If you want to spend little money and get a positive ROI, you better invest the amount into Amazon PPC instead.

  1. Retargeting

Retargeting is a crucial part of every digital marketing strategy. It means to show ads to the audience who have taken particular actions in the past, such as making a purchase or viewing a page. It is a powerful strategy because those people have already taken actions showing that they have some kind of interest in your business. By creating audiences based on their actions, you can make extremely targeted ads, as compared to the one that treats everyone the same.

A good strategy for retargeting is to run ads to a broad audience with no discount, just a landing page that promotes your product at full price. Next, target the audience who visited your page and didn’t click through with a small discount, such as 15% off. After that, retarget people who visited again but still didn’t click through, even with a larger discount. 

It is the perfect way to maximize the profit you get from your ads, by first capturing the full-price sales from the audience who are willing to buy without a large discount.

Conclusion

Facebook ads can be a powerful growth lever for your Amazon business. With a successful strategy, you can not only grow your visibility and cash flow but can also build key assets for your business which includes an email list. 

If you have more questions regarding running Facebook ads for Amazon products, subscribe to SwiftStart Newsletter and Podcast. Or you can even share some helpful information that you might know.

Want to Know More About Facebook Ads for Amazon Products?

How much does a Facebook ad for Amazon cost?

There are two metrics according to which Facebook bills advertisers: Cost-per-Click (CPC) and Cost-per-Thousand-Impressions (CPM).  The cost of Facebook ads depends on your campaign objective, bidding model, and industry. If you’re using CPC, Facebook ads cost around $0.94 per click. Contrary to that, if you use CPM, Facebook ads cost around $12.07 per 1000 impressions.

How do I track my Amazon conversions from Facebook Ads?

There are a number of ways to track Amazon conversions from Facebook ads:

Looking for an Amazon success partner? Get in touch for a free one-to-one consultation with our Amazon Gurus.

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