A Comprehensive Guide on Due Diligence for Amazon FBA Businesses

Selling on Amazon has been one of the most popular routes to owning your own business in recent years. From your own living room, you can run a multi-million dollar business for a relatively small startup cost. This is your guide on Due Diligence for Amazon FBA Businesses

Starting an FBA storefront is relatively easy. Once you’ve created your Amazon Seller Central account and sorted out logistics, you can automate most processes. You then have to manage only customer service or PPC campaigns. This is your guide on Due Diligence for Amazon FBA Businesses.

However, if you’re looking to accelerate your business’s growth and progress quickly along the entrepreneurial path, it might be in your best interests to buy an FBA business instead of starting one from scratch.

The Case for Buying over Building an FBA Business

Starting a successful FBA business requires an initial capital injection. As well as the right attitude and skill set, to ensure growth and sustainability.

More than 50% of FBA owners inject at least $1,000 into their business when starting it. While more than one in five owners inject over $10,000 in initial capital, according to one study. However, as you’d expect, it’s not necessarily a pay-to-win game. More FBA businesses in which the owners invested $500 or less were still active. In comparison, those in which the owners invested $10,000 or more are not.

A higher initial investment means you have more room to scale your business. It also means you have more moving parts to manage. However, once the business is optimizing, a highly lucrative investment is ran. Case in point: Wall Street investors and private equity firms have been acquiring mom-and-pop FBA stores in deal sizes totaling billions.

Brand aggregators pick up a variety of FBA brands because they recognize their potential to scale. What if you took a leaf out of brand aggregators’ books and bought a business instead of starting one yourself? You could also acquire an FBA business in a profitable niche. Then, you’re left without having to figure out product-market fit and risk investing capital in different ways. They may end up as sunk costs. 

Take a look at how valuations for FBA businesses come about in this guide on Due Diligence for Amazon FBA Businesses. Then you have an idea about how much you should be paying for one.

How FBA Businesses are of value

Photo by olia danilevich on Pexels.com

We won’t go into too much detail about how businesses are of value as we cover this in greater depth in another article.

Basically, an FBA business is valued by the following formula:

Valuation = 12-Month Average Monthly Net Profit x Multiple

The average monthly profit is set against a monthly multiple that takes into account several business performance factors. There is the age of the business, traffic diversity, number of SKUs, the presence of an email list, and more.

Before we dive further into what makes up the monthly multiple, it’s important to understand two things. One is why pricing periods are important and two is why this matters if buying an FBA business.

Pricing Windows 

The number of months over which the average monthly profit calculates might seem like a small detail. Yet, it can reveal a lot about an FBA business.

A 12-month window is the gold standard because it gives the most holistic view of a business’s performance. You can see whether traffic and revenue are affected by seasonality or are quite steady throughout the year. A 12-month window also gives you more data to look at before deciding to purchase.

Some sellers may consider using a shorter pricing window. This reflects a recent increase in performance or because the business began making profit only recently.

Naturally, you want as much information about a business as possible before making any buying decision. A business might look like a great deal according to your criteria. If you’re a first-time buyer, we’d recommend looking at businesses that provide a 12-month average profit.

Now that we’ve explained the importance of the pricing window, we’ll review some things that make up a monthly multiple. As well as what to look out for when doing your due diligence.

Age of the FBA Business

Simply put, the older an FBA business is, the higher the multiple is likely to be. 

An older FBA business indicates how resilient it is in the face of challenges. Such as finding product–market fit and establishing a foothold in the market. An older business also shows that it’s in a profitable niche selling in-demand products. Instead of riding the latest trends that may die off in a few months.

We recommend that you look for businesses at least two years old. This isn’t a hard-and-fast rule. Many FBA businesses won’t be profitable for several months after their Amazon storefront is first created. It also takes some time for operations to stabilize and to build up a solid brand.

The Number of Established Traffic Channels

An FBA business with greater traffic diversity will likely command a higher business multiple for two main reasons.

First, diversified traffic channels protect your business if your primary traffic channel is disrupted as a result of a change in search engine algorithms. This scenarios can happen from low experience in marketing and are trying to scale a business yourself. When you think you’ve cracked the advertising code and have great keywords, your pay-per-click (PPC) campaigns could be suspended for a breach of the terms and conditions. Sales can then dry up if you can’t reach new customers.

By establishing different traffic channels for customers to find your products, you also broaden your brand awareness to include new audiences. Having a mix of paid and organic traffic sources is ideal because potential customers might not visit all channels on which your brand has a presence. 

Another way to diversify your traffic is through omnichannel selling. Selling on e-commerce platforms outside of Amazon gives you access to audiences who may prefer Walmart or eBay for specific products. Suppose your product is in demand and your copywriting is solid. In that case, you should be able to establish a foothold in various online marketplaces and gain new customers through various traffic sources.

Customer Reviews and Ratings

The simplest way to measure a brand’s reputation is to look at the storefront’s customer reviews and product ratings. What’s great about Amazon is that with enough social proof of ratings and reviews, the marketplace could award your products with badges or labels that give them extra credibility.

An Amazon’s Choice badge means that a product’s shown to people looking at a category for the first time.

With enough sales and positive reviews, the product could also earn a Best-Seller badge, but this is harder to obtain because it requires many reviews and depends on other factors that affect Amazon’s A9 algorithm and Best-Seller Rank. The key takeaway is that an FBA business with an Amazon’s Choice badge, even without a Best-Seller badge, is a reputable brand in its niche.

Other ways to investigate brand strength include monitoring social mentions. You can get a general feel for how a brand is perceived based on who’s talking about it and recommending its products to their friends and family. These types of spontaneous posts or shoutouts can indicate how well-received a product or service is if you don’t want to rely only on reviews and ratings.

The Presence of an Email List

Photo by Maksim Goncharenok on Pexels.com

Email marketing creates another revenue stream, working as a traffic driver that exists outside of search engines.

A large email list is an addressable audience of subscribers interested in receiving content from the brand, including product reviews, recommendations, or launches, and could potentially become loyal customers. 

Simply put, an email list can significantly boost an FBA business’s revenue.

An extensive email list is also a sign of brand strength, as customers are now more concerned with customer experience and brand innovation rather than depending on how long a brand has been around or how well established it is.

Even if the list isn’t monetized, it can be repurposed in several ways, such as by delivering helpful content or gathering customer feedback. Because an email list is so flexible, it can be a valuable asset for your business; if you have ideas for email marketing campaigns, buying a brand with an existing email list can save you the time of building one from scratch.

The Number of Products on the Storefront

Smaller businesses tend either to have many active products on their storefront or to be based around a select few products while they’re figuring out what works.

If you’re willing to work on a business and spend time optimizing it while you learn the ropes, having an overly large or minimal SKU range might not be as much of an issue.

However, if you’re looking for a hands-off operation, then you’ll want to buy a business with a smaller SKU range. That way, you won’t need to spend as much time on upkeep, including optimizing each listing and checking that it’s still active. 

For reference, we’ve seen institutional buyers like brand aggregators and private equity firms acquire seven-figure FBA businesses with 40 or fewer SKUs. These larger institutions have in-house teams that specialize in scaling FBA assets, so a smaller range of products is easier to work with.

If you see a business that meets all your other criteria but has a larger SKU range than you expected, you could hire virtual assistants (VAs) to whom you can delegate the time-consuming and repetitive tasks of product upkeep.

What to Look for in a Great Deal

Choosing which FBA business to buy can be tough, but it boils down to your personal goals and preferences.

Niche doesn’t matter, although home and pet care are two of the most popular choices due to the wide variety of subcategories you can choose within them.

To make your search easier and quicker, make a due diligence list to help discount unqualified businesses. A few initial things to include in the list are the size of your budget, how much time you want to spend working on your business, and how many products the business sells.

We covered some due diligence criteria above when discussing the factors that affect the monthly multiple. Other due diligence criteria may include how many people the business employs and whether it faces any pre-existing legal issues.

What your due diligence checklist eventually looks like comes down to what your goal is in buying an FBA business. If you want an entry point to e-commerce and running your own business, you may be looking to buy a five-figure or low six-figure business with a few SKUs in a niche you’re familiar with.

Depending on your budget, you might be looking to buy an FBA business with room to expand. One that hasn’t been fully optimized by the current owner due to time or capital constraints. Your criteria will be different from those of the buyer in the previous example. You might be looking for distressed assets with a negative trend in profits and traffic, but that are still profitable.

Figure out what your overall goal is. Once you’ve identified what the ideal FBA business looks like in your due diligence checklist, all that’s left to do is to find the best deal for you.

Where to Buy Suitable FBA Businesses

If you’re a first-time buyer, we recommend using a broker’s service. A private sale provides little to no protection for buyers and sellers. It could take you a long time to sift through before you find qualified businesses that pass your checklist.

Many buyers think they can negotiate a great deal and pay less than a business’s worthwhile also avoiding paying a broker’s fee.

Experienced buyers can achieve such results. However, it’s less likely and demands a lot of experience in the negotiating and M&A arena.

If you don’t have that much experience, you can visit a curated marketplace offered by brokers. There, you’ll find businesses that meet a minimum standard of quality and perform more or less as advertised. You’ll also receive support and advice from an experienced team of business analysts who can help you find the right business based on your needs. This is the end of this guide on Due Diligence for Amazon FBA Businesses

If you’re ready to kick-start your entrepreneurial journey in the FBA world, register on our marketplace for free.

Follow The Data Podcast: Finding Success in E-Commerce with Ashley Armstrong

How does one pave their way into the world of e-commerce? We spoke with Ashley Armstrong to find out.

Since the beginning of 2020, the popularity of e-commerce has skyrocketed. Finding Success in E-Commerce can be as easy as one, two, three.

After years of steady growth, the COVID-19 pandemic accelerated online businesses to new heights. With increasing interest from media to shine a spotlight on the industry, even more people have recognized the limitless potential that comes with selling on Amazon.

But not everyone is jumping right in, even after conducting the research. Why?

Undoubtedly, fear of failure is a leading reason and one that’s entirely fair. But how do we overcome that fear, and what steps should be taken to mitigate risks?

We dialed up Ashley Armstrong, an e-commerce rockstar with 10+ years of experience in online businesses, to discuss these issues.

Loyal listeners of the Follow The Data podcast may recognize Ashley, as this isn’t her first time on the show. Last time, we honed on the topic of how to grow businesses through virtual assistants. This time, we focus the conversation on more big-picture ideas.

Tune in for an in-depth discussion on overcoming fear, the importance of building a support system, and how she’s taking on a leadership role to bring together women in e-commerce.

HIGHLIGHTS

Get to know Ashley Armstrong and what she’s been up to since we last spoke. (0:00)

With more than a decade in e-commerce in a variety of roles, Ashley’s one of the best resources in the Amazon selling space. We check in on what she’s been up to over the pandemic, with so many changes in e-commerce in such a short span. Finding Success in E-Commerce can be done.

As more people recognize the tremendous opportunity that comes with selling online, what’s the number one reason people don’t make the leap into e-commerce? (6:39)

With so many green lights for the industry, why aren’t more people taking the leap into e-commerce? Fear. Fear of failure or the doubts that come with learning something new can create the devil on your shoulder, telling you all the reasons not to do something big.

Amazon sellers come from all types of backgrounds, with each one providing valuable lessons to guide them to success. How did Ashley’s background in athletics work to her advantage? (8:49)

One of the beauties of e-commerce is that it’s open to people that from diverse backgrounds. And people are able to use their life experiences as resources that fuel them to success. With a background in sports, Ashley explains the crossover of the athlete’s mindset and how it applies to e-commerce.

We’ve talked about how fear can be your worst enemy when it comes to starting an online business. From the perspective of a potential entrepreneur, how do we overcome that fear? (20:09)

Unfortunately, you can’t separate the determination for success from the fear of failure regarding e-commerce. Cam and Ashley break down how to cope with fear and certain opportunities to consider before taking that step forward.

How can you turn your losses into lessons that fuel long-term e-commerce success? (32:57)

While we can work with fear and take strategic steps to mitigate risk, failure is not something that can be eliminated entirely. In fact, some of the more prominent names in e-commerce have experienced failure at some point. Ashley tells us about a time she took a loss and used it to her advantage.

Why has Ashley pivoted to running a seller community for women? (39:04)

Throughout our discussion, we’ve mentioned how important it can be to have a support system. Whether it’s about product research, strategy, or personal support to take care of our mental and emotional health, it’s crucial to be around people who have your back.

Online, it can be very much a lone wolf mentality. Additionally, finding female representation in the Amazon selling space can cause someone to feel like even more of an outcast. As the Amazon seller community grows larger, Ashley’s looking to fill the gap for representation from women in e-commerce. Finding Success in E-Commerce is great.

With her extensive background and great knowledge, we look forward to seeing that community grow.

While we typically talk more nuts and bolts of Amazon, such as product research or PPC, understanding the barriers that prevent aspiring entrepreneurs from achieving their dreams and how to overcome fear and doubt is an essential conversation worth having.

As always, a huge thanks to Ashley for taking the time to share her vast knowledge with us. You can stay in touch with her on her website or by joining her network for women in e-commerce.

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Amazon PPC Tool Quick Start Guide

Learn what to expect, how to navigate, and where to start when mastering an Amazon PPC tool.

As Mark Twain once said, the secret of getting ahead is getting started. But in many instances, getting started can be the most challenging part. Especially with the amazon ppc tool.

That much is certainly true regarding Amazon PPC and software designed to simplify and add sophistication to Amazon’s advertising platform. Amazon Advertising is still very much in its early stages. There should be no expectation to know where to begin.

So we’re here to help guide you in the right direction. To provide a basic knowledge of the Viral Launch advertising platform. You will know where things are, what to look for, and what’s included. Everything else begins to make much more sense.

Just like we must learn to walk before we run, you’ll need to understand the basics of Viral Launch’s PPC automation and management tool. Then, you’re free to start implementing advertising strategies that take your business to the next level!

You’ll need to set up a Viral Launch account that includes access to Viral Launch’s advertising platform, Kinetic PPC.

Sign up for our FREE Amazon PPC Playbook. With training from experts guiding you through all steps, you can perform PPC like a pro and dominating on Amazon!

First, you will need to provide Viral Launch with both MWS and seller central authorization in order to integrate Kinetic with your Amazon Advertising Console. You can find step-by-step instructions on how to do that here.

Once successfully added, you’ll see your storefronts and ASINs within your account. Additionally, we strongly recommend setting up your landed unit cost and target ACoS within Kinetic. While admittedly tedious, doing so pays off in the end to fully experience the benefits. We’ll explain more on that shortly.

Campaign View vs. Product View

Once you’ve added proper authorizations, you’ll notice there’s not one but two ways you can view your ad.

  • Campaign View shows information for every campaign across all your products. It looks a lot like Seller Central. 
  • Product View shows information per ASIN, so you can see how each individual product is performing.

For those familiar with Amazon PPC, campaign view offers a more familiar appearance. With souped-up features, embedded data reporting, and cutting-edge integrations from the Viral Launch software suite, it’s like the Amazon Advertising Console on steroids.

But Product View truly allows for innovative insights into their ads like never before. With Product View, you are able to view how your ads are performing at the ASIN level so you can maximize efficiency. Once you’ve added your landed unit cost and target ACoS, you gain the ability to pinpoint your campaigns to minimize risk and maximize your ROI.

Make Your Own Rules

Create a rule for your campaigns or utilize our templates to optimize your ads.

One of the biggest roadblocks to Amazon advertising success continues to be monitoring adjustments. With all the duties placed on a business owner’s shoulders, monitoring campaign statistics and making changes at the right time can feel impossible.

Kinetic solves that problem with its ability to create rules to optimize your ads. Don’t know where to get started? No worries! Our handy pre-made templates can help get you started with understanding what rules you can create by providing the strategy behind them.

Set parameters to shut down underperforming campaigns or increase the budget for ads that are skyrocketing your sales to enact performance-based automations. That’s right. Kinetic’s by-the-minute monitoring and your personalized rules combine to stop losing campaigns in their tracks or reward winners with more ad spend.

You can set the rules to three different states of action.

Automatic

  • Rules set as automatic continuously go into effect once the rule has been triggered. In this state, the rules you’ve created for a campaign will fire off whenever the conditions have been met. For example, if you create a rule that increases your bid amount for keywords with a low ACoS and place it on automatic, the rule will take action every time it’s applicable without any action needed from the seller.

Manual

  • Rules in a manual state work similarly to those in automatic. However, instead of the rule going into effect as soon as the conditions have been met, you’re notified within the tool without Kinetic making any changes. Once notified, you can review the rule that’s been triggered in the Activity History tab to decide whether or not to approve the action. As the name implies, this state is more hands-on.

Paused

  • In a paused state, rules exist without any action taking place as a result of them. Perhaps you’d like to experiment with rule creation but don’t want to trigger changes for your campaigns. Placing them in a paused state ensures that your work is saved, but there will be no automations or notifications regarding the specific rule. At any point, you can take paused rules off the bench and into the game by selecting manual or automatic with the push of a button.

With Kinetic, your campaigns can literally make desired real-time adjustments while you sleep! If you prefer a more hands-on approach for your ad campaigns, you can do that too. Featuring the option to do either,

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Get Familiar with Your Keywords and Search Terms

On top of the ability to create campaigns at the ASIN-level with customizable rules to more effectively carry out your goals, this Amazon PPC tool collects extensive reporting for a clear view into your ad performance at the keyword level.

The Keywords and Search Terms tabs within Kinetic display critical metrics that better informs your advertising strategy and tactics.

In Seller Central, you have to run a report for a particular date range, export it to Excel, add a series of filters and try to understand where it’s actually delivering and look for opportunities to improve the targeting. Kinetic simplifies this process, giving sellers the power to dig deeper into their data and make changes to optimize their campaigns.

The Keywords and Search Terms tabs offer unbridled insights into your ad performance.

While many make the mistake of using these words interchangeably, a very important detail differentiates these two Amazon buzzwords. In short, the Keywords tab is where you’re targeting, while the Search Terms tab presents only where your ads are delivering.

Keywords Tab

This view helps to consolidate all of the keywords you are targeting and allows you to see how the keyword is performing, and what campaigns are contributing to that.

Search Terms Tab

The Search Terms tab can save you loads of time in understanding where your ads are delivering. Once you’re using an Auto campaign, or broad and phrase match targets, your ads can deliver for a wide array of customer search terms.

In short, the Keywords tab shows keywords are targeting, while the Search Terms tab presents only where your ads are delivering. Your Search Terms report will show you a list of keywords that have garnered at least one impression, along with a bevy of metrics that gauges performance.

Conclusion

Hopefully, this quick start guide helps you gain a better understanding of this cutting-edge Amazon PPC tool. As PPC continues to become a larger priority for Amazon, it can serve as an engine for your business to scale like never before.

Now that you have a better lay of the land, taking your business to a new level is within reach! Register for a Viral Launch account today and start your 14-day free trial to turbocharge your FBA efforts.

Sign up for a 14-day FREE trial to Viral Launch’s most comprehensive plan, featuring Kinetic PPC

Ways to Start, Grow, or Scale Your Amazon Business with $1400

As the largest and latest round of stimulus checks make their way into bank accounts across the USA, we take a look into how you can use it as an investment into your business.

According to the IRS, about 90 million Americans were sent their $1,400 stimulus checks on Wednesday alone, with more to be sent in the coming weeks.

The newfound financial flexibility creates opportunities previously not afforded for those fortunate enough to receive the $1,400 as “extra” money. One popular way to view the stimulus check is as an avenue into investing, but investing isn’t limited to stocks.

Instead of investing in another company, why not invest in your own?

Whether you’re a longtime seller, beginner, or considering leaping into FBA, there are plenty of ways to rejuvenate or jumpstart your Amazon business with $1,400. By investing in your e-commerce business, you could easily turn your stimulus check into a long-term money-making machine.

[YOU MAY ALSO BE INTERESTED IN: 10 Ways You Can Make Money with Amazon]

We should mention this isn’t necessarily a guide. Every seller’s journey is different. The options we’ll highlight below are merely a few options you may want to consider. With prudent planning, these options present a promising opportunity for you to get a great return on investment from your stimulus check.

Without further ado, let’s dive into it!

Elevate Your Product Research Game

When it comes to selling on Amazon (and in most aspects of life), having the luxury of reliable data to base your decisions on is a tremendous luxury. For Amazon sellers, this is made possible through product research.

Whether you’ve yet to begin your FBA journey or have a catalog full of successful products, product research is crucial for sustained profitability. When you have access to comprehensive market data, it’s almost like having the answers to a test.

While reliable Amazon sales data is crucial at all stages, it’s especially vital for beginners. The research that goes into deciding upon your first product serves as a foundational aspect of your Amazon career. Choosing to source and sell a product without conducting intensive research with data you can trust is a surefire way to make your first product your last product.

So if you’re beginning to look into FBA, test out a few software providers. Most software providers will offer a free trial, giving you time to see if they’re right for you.

How to Find Successful Amazon Products with Viral Launch

Feel free to test trials from different software providers simultaneously to compare and contrast the data. If you notice any inconsistencies, don’t be shy. Ask their customer service team how they arrive at their numbers. With such an important decision that can pay off handsomely, don’t leave any stones unturned.

Aspiring Amazon entrepreneurs aren’t the only ones who can take their product research game up a notch. Often, Amazon sellers don’t utilize all tools within their toolset.

Whether there are underutilized tools in your current software plan or an opportunity to upgrade your plan for additional access, there’s no better time than now to explore unfamiliar tools. Amazon is constantly evolving, so sellers must evolve with it.

Boost Your Business with Captivating Creatives

It’s springtime! You know what that means. Spring cleaning!

For Amazon sellers, the seasonal cleaning isn’t limited to dusting ceiling fans, clearing out the refrigerator, and giving your home a good deep cleaning. It may be worth considering if your listing creatives are due for an upgrade.

Do your listing’s copy and product photography abide by Amazon requirements and follow the style guidelines? Is your competition doing something with their photos that seems to be working? Are you maximizing your visibility by having a keyword-optimized product listing, or are you missing out on indexation for keywords customers are using to products like yours?

These are just a few of the questions you should ask yourself when considering updating your creatives.

Even if your product photography is in tip-top shape, additional photos can still provide plenty of benefits for your business. For example, possessing extra product images opens the door for creative advertising.

One way you can spruce up your advertising with enhanced photos is Amazon Posts, a relatively new option to increase brand visibility. Amazon Posts is a social media-like platform within Amazon that allows brand registered sellers to flex their advertising muscle. Appearing on product detail pages selected by Amazon, brands get the ever-important chance to poach customers from competing listings.

How Amazon Posts appears to shoppers.

The best thing about Amazon Posts? It’s totally free. Well, submitting your Posts is free, anyway. You’ll still want professional photos capable of enticing customers to earn a click. Since Amazon Posts is somewhat new, it’s flying under the radar of many sellers, but can be an incredibly efficient weapon for stealing customers from the competition.

Additionally, having extra photos come in handy if you sell outside of Amazon or may consider selling elsewhere at a later time.

Lastly, having extra photos at your disposal provides an even better opportunity to experiment for peak optimization. Once you’ve got premium product photography, don’t forget to split test! With a plethora of split testing sites to choose from, it’s an easy step to maximize your conversions and profitability!

Flex Your Marketing Muscle with PPC

Another great way to invest your stimulus money into your business is by using it to take the next step with Amazon PPC (pay-per-click) advertising.

Although Amazon debuted PPC advertising in 2012, it has grown considerably over the last 2-3 years and shows no sign of slowing down. With Amazon expected to net nearly $13 billion in advertising in the United States marketplace alone, the company has every reason to continue pushing and developing PPC.

Whether this means finally taking that PPC course, creating your first campaign, or trying out an unexplored ad type, doing it with a bonus $1,400 makes it a prime opportunity to experiment with PPC.

For sellers currently selling, it especially makes sense to test out new campaigns now as plenty of customers are flush with their stimulus money and tax season right around the corner.

Want to know more about Amazon PPC? Enroll in our FREE PPC Playbook Course.

After all, you’re not the only one receiving the stimulus. More customers shopping with more money is a recipe for more customer searches. As your product appears more frequently through search and on competitor listings, the sample size for your campaigns grows larger and, thus, more reliable.

Fortunately, the options are flexible for you regarding your PPC campaigns. Set your budgets as low or as high as you feel comfortable with, and barring disaster, let them run until the reporting data begins to stabilize. Once they’ve matured, you’ll have real data on your performance that you can use to optimize to your advantage.

Scale Your Store by Expanding Your Brand

Suppose you feel like you’ve squeezed nearly all the juice you can out of a product. First off, congratulations! It’s every Amazon sellers’ goal to reach and maintain peak performance, but what do you do once you’ve achieved it? For many, it can be a never-ending pursuit of perfection.

However, it may be more beneficial to scale your brand by finding your next home run. Think of your stimulus check as $1,400 off the development of your next product, and this becomes especially beneficial.

Of course, this entirely depends on your goals, resources, and risk appetite. Ideally, the learning curve for launching a new product shortens with each new product. If you’ve built a strong brand on Amazon, the likelihood of your next product being a success increases exponentially.

Instead of squeezing every penny possible out of your current storefront, dig into your sales reporting numbers and do your best to determine the best course of action for your business.

In Conclusion

Don’t miss out on the opportunity to supercharge your Amazon business! Whether jumpstarting your entrepreneurial career or looking to take your existing e-commerce operation up a notch, investing in your business with your stimulus money could provide an excellent, long-lasting return on investment.

No matter what you decide to do with your stimulus money, enjoy it! Without a doubt, extra cash in your pocket is nice. But creating long-lasting, sustainable sources of income is even better.

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How E-Commerce Brands Can Bounce Back in the Wake of the Coronavirus

While coronavirus has impacted nearly every aspect of the global economy over the past few weeks, e-commerce brands have been hit especially hard. Retailers with major ties to China have struggled to deal with significant interruptions to the supply chain as well as travel limitations between countries. 

The good news for e-commerce brands is that the spread of coronavirus in China has been slowing down, allowing factories to reopen. The bad news is that coronavirus is still a major concern worldwide and it is difficult to predict how its spread throughout the world will affect business. 

Because of the continued concern for the world population’s health, it’s imperative that e-commerce brands take careful steps to navigate this global issue, minimizing risks and maximizing opportunities. Here’s how you can revitalize your brand, despite any recent effects of this recent disease.

Increased Customer Communication

With the frequent shipping delays, inventory shortages, and unknown an unknown timeline for the end of the coronavirus, some businesses have been worried about dealing with upset customers. But even the best brands can’t control for unexpected events like global disease. Customers will understand this as long as you keep them in the loop. 

It’s true that upset customers can wreak havoc on your brand. Fifty-two percent of customers tell others to avoid a brand after a bad experience, and 47 percent of customers have switched to a different brand due to bad customer service. It’s essential to take care of your customer, so when circumstances are out of your control, the best thing to is update customers as the situation evolves.

You’ll earn the trust and loyalty of many people simply by being honest and showing you care. Share your estimated timeline for progress with customers and be clear that you will continue to update that timeline as you receive more information. When your operations are back to normal, you’ll have an even more solid customer base than before.

The Online Advantage

Rising anxiety about coronavirus is causing many customers to stay at home. This means e-commerce brands have a major advantage over brick-and-mortar. This is an excellent moment for online retailers to reach out to customers who need products, but don’t want to expose themselves to germs in public spaces.

In fact, e-commerce has helped the economy during disease outbreaks in the past. During the SARS outbreak of 2002 and 2003, Alibaba, China’s biggest e-commerce company, took off. Cell phone and Internet companies also thrived at the time. Due to the lack of reliable information about the disease provided by broadcast news, many people turned to their phones and computers to learn how to protect themselves. 

The SARS epidemic was tragic, causing numerous deaths throughout Asia. While millions of people were confined to their homes, however, the e-commerce sector worked to allow life to go on by offering services online. 

E-commerce has the chance to help the world economy during the current coronavirus outbreak in the same way that it helped during the SARS epidemic. It’s important to capitalize on this moment in order to keep your business alive as well as help those people who need your products.

Allowing Remote Business

The spread of a global disease is one of the many reasons to be grateful we have 21st century technology to work with. While there are plenty of aspects of business that must be conducted in person, administrative work, client meetings, and company-wide communication is possible to be conducted remotely. 

Especially if you are located in a region with a growing number of coronavirus cases, the more people who stay home, the easier it will be to contain the disease. The worst thing for your company would be for an outbreak to spread through the ranks of your entire company, completely immobilizing business. 

For those positions that require in-person work, be sure to emphasize the importance of employees watching for symptoms of sickness and staying home if they suspect they may not be fully healthy.  

Diversify Fulfillment Centers

Many e-commerce retailers have seen benefits of having fulfillment centers in a variety of geographic regions. It leads to faster shipping times and the ability to hold greater inventory, avoiding products being on back-order.

Diversifying your location for this centers is best practice in business at all times, not just during a global disease. But the rise of coronavirus has shown that if you are following this diversified location model already, the disease’s impact on your company will not be quite as harsh.  

Although multiple regions in China were hit by the coronavirus, some experienced more severe outbreaks than others. If you have fulfillment centers and warehouses in multiple locations, you increase your chances of being able to keep some of your company’s operations running during an outbreak. 

You’ll also benefit from using multiple fulfillment centers during a disease epidemic because you’ll be able to hold greater amounts of inventory in order to make up for a potential slowing of production in factories. Many businesses are currently seeing products run out without the ability to replace them due to the interruptions to the supply chain caused by the coronavirus. If you can inventory shortages, you’ll be able to win over the customers from other businesses that were not able to meet customer demands. Strong inventory management during a time like this is one of the biggest things that will set you apart as a brand.

Validate Your Product Ideas With Viral Launch’s Amazon Market Intelligence Tool

Now that you’ve got both feet on the ground as an Amazon seller, the tricky part is finding what products will put you ahead of the pack. You can look at snapshot estimates from a random collection of sourcing tools, piecing together what you hope is an accurate picture of the market and product — or you can improve your chances of sourcing only the right products by making use of the right Amazon market intelligence.

Viral Launch’s Market Intelligence tool gives you the most comprehensive access to Amazon-wide insight across billions of different data points. With it, you can make truly informed decisions and validate any product before you ever launch it.

What Real Amazon Market Intelligence Looks Like

Intelligence is nothing without data, which is what makes our Amazon Market Intelligence tool so valuable. It’s the only tool that can collect and leverage data points from across Amazon’s entire market. With the data the tool gathers for you, you can glean the kind of insight and analysis that can help you almost predict the success of any product launch. For example, the billions of data points you’ll have access to can help you assess markets and products by:

1. Name brands: See whether any big household names or Amazon itself is selling in the market. It will be easiest for you to compete against other smaller brands, so stay away from markets that are dominated by one brand or a few dominant brands.

2. Sales spreads: If a few products are claiming most of the sales in the market, it’ll be harder to claim a piece of the pie, especially as a newcomer. Look for markets where sales are spread pretty evenly between the products on the first page.

3. Competitors’ intelligence: Finding a few products dominating sales spreads isn’t necessarily a bad thing. Use the Market Intelligence tool to reverse-engineer their strategies. For example, track what keywords the dominating products use in sponsored ads and make a list of your own variations.

4. Market trends: Sales trends tell you a lot, but if you want to determine which trends are fads and which are actual depictions of the market, you’ll have to look at data from across a few years. Use market trends to avoid investing too heavily in the next fidget spinner.

5. Price margins: Even with a great product, you won’t make a profit unless you can cover Amazon’s fees and still stay price-competitive. You can research the cost of sourcing units from a site like Alibaba, then plug it into our Amazon FBA calculator.

6. Product reviews: Speaking of being competitive, you can enter the competition a lot sooner in a market where mediocre performance is the norm. Research reviews throughout the market and pay special attention to those that are generally low.

7. Product fulfillment: Finally, stay away from markets filled with FBA (fulfilled by Amazon) or AMZ (Amazon original) designations. If your products are FBA, then you can compete more effectively in markets that are mostly filled with FBM (fulfilled by merchant) products.
Data can mean the difference between entering a market and thriving in it — or sinking fast due to poor intelligence. With our Amazon Market Intelligence tool, you can make sure you end up on the thriving side every time. To learn more, sign up for a free trial today!

A Beginner’s Guide To Amazon’s FBA Process

If you plan on selling high-volume products on Amazon, you may want to choose the Fulfillment by Amazon shipping plan. Under the FBA process, you send your inventory to Amazon. Upon each order, Amazon stores, picks, packs, and ships your stock from its warehouse.

It can save you a significant amount of time and reduce the burdens of storing and shipping your product. However, that doesn’t automatically make FBA the right choice for every new Amazon seller, so we’ve outlined a few of the most important things you need to know before starting the FBA process.

Calculating Your Amazon FBA Costs

In many ways, FBA is the most convenient shipping option, though there are a few fees you should be aware of. For example, FBA’s fulfillment fee is a flat, per-unit fee based on the size and weight of each item (e.g., standard or oversized).

You’ll also be responsible for a monthly inventory storage fee, which is based on the average amount of space your inventory takes up in the warehouse. This volume is calculated when inventory is fully packaged and ready to ship, according to Amazon FBA requirements.

Before you choose, you can use Viral Launch’s Amazon FBA Calculator to estimate fulfillment fees for listed items that are similar to your product. You can compare them to the costs of fulfilling orders yourself by using Amazon’s FBA Revenue Calculator.

Weighing FBA Pros and Cons

There’s a certain amount of convenience that comes with having Amazon keep, package, and ship your inventory to your customers on your behalf. For example, when you opt into the FBA process, you instantly gain access to lower overall shipping rates, hands-off purchase fulfillment, and several other benefits. You’ll also get to:

  • Make your products Prime: An analysis of buyer shopping patterns for Amazon revealed that Prime members spend about twice as much as nonmembers (an annual average of $1,400 versus $600, respectively). When you sign up for Amazon FBA, your products automatically become part of the Prime marketplace.
  • Win the Buy Box more often: When buyers search for an item that multiple sellers have available, most purchase the item from the Buy Box. Sellers that sign up for FBA have a higher chance of winning the Buy Box than other sellers, even if their items have a slightly higher price tag.
  • Fulfill orders from other websites: Many Amazon sellers have stores on more than just Amazon’s marketplace. If you do, then multichannel fulfillment may be the greatest benefit to choosing FBA. You can take advantage of Amazon’s lower-than-average shipping rates to fulfill orders from your own website and other e-commerce sites.

These advantages (among others) can make running your e-commerce business a breeze, but FBA also comes with a few cons. For instance, the fees and fulfillment costs associated with the FBA process include having your items shipped to the fulfillment center, and you don’t get to choose the warehouse. Consider that you’ll also have to:

  • Take a step back from inventory: Having Amazon fulfill your orders also means giving up much of your physical access to your products. This may make it more challenging to track specific items and orders, and you’ll have to rely on Amazon to resolve any issues involving inventory or order fulfillment.
  • Keep up with tax obligations: Until you enable and set up Amazon’s sales tax collection, Amazon won’t automatically collect sales taxes for your products. You’ll have to collect sales tax from buyers in and out of the state in which Amazon stores your products. Therefore, it’s important that you fully understand your tax obligations.
  • Prepare and label your items: Part of handling your inventory includes assigning appropriate barcodes to each item so Amazon knows what to pick. You may have to opt for Amazon’s FBA Label Service to ensure accuracy. Or you can speak to your manufacturer about providing labels at a lower cost.

Enrolling Your Products in Amazon FBA

Perhaps you’ve weighed the pros and cons and decided Amazon FBA is the right process for your products. Now, it’s time to put that process into action. After you’ve added a product to Seller Central and created its listing, you can enroll it in FBA by first going to “Inventory,” then clicking “Manage Inventory,” and finally selecting “Send Inventory.”

From here, you can enter your ship-from address — likely your manufacturer’s address. You can also enter the number of units you’re sending to Amazon and who will be responsible for preparing and labeling them (you or Amazon). Then, print labels to send your manufacturer, and you’ll be assigned a warehouse to ship your products to.

Keep in mind that some products require specific preparation so that they arrive at the Amazon fulfillment center in good condition. You can provide specific prep guidance and instructions in the “prepare products” step when creating your shipment, with the option of having Amazon do the prep work for a per-item fee.
For more detailed instructions or for help finding a winning product to sell through the Amazon FBA process, start a free trial today.

The Amazon PPC Ad Types: What They Offer and How To Manage Them

Creating a successful Amazon PPC campaign isn’t just a matter of spending money on some keywords and then hoping to build sales. The strategy, research, and structure of a campaign are what determines its success. And even if you’ve done some thorough preparation, not keeping an eye on how well it’s doing will be a recipe for failure. 

 Every business has a specific vision of what an effective PPC campaign is. It could increase organic rank, drive sales of a seasonal product, or be consistently profitable. However you define PPC success, knowing the full scope of what’s possible within each of Amazon’s advertising channels will help you devise the ideal campaign for your brand. The keywords you target, the spending thresholds you set, and the performance metrics you use are all crucial to building a strong campaign. 

 As you juggle these different tasks, Viral Launch’s PPC tool, Kinetic, can make managing your campaigns easier and help you achieve your Amazon advertising goals. The data it provides on your ads’ performance can ensure your PPC campaign is structured effectively, targeting the right keywords, and spending efficiently. 

 Kinetic also offers automated features that will help you save time by taking bidding adjustments off your to-do list. It doesn’t force predefined rules on your campaign automation or only provide limited data. Similar to Viral Launch’s other software tools, Kinetic gives you the customization, flexibility, and data to make your ideal Amazon PPC ad strategy a working reality.

Here we’ll cover the various Amazon advertising channels—Sponsored Products, Sponsored Brands, and Product Display ads—and how Kinetic can provide benefits to each kind of PPC campaign. 

Breaking Down the Amazon PPC Ads: Sponsored Products, Sponsored Brands & Product Display Ads

 

The goal of an Amazon ad is pretty simple: convince a consumer to purchase your product. Yet making that happen is both complicated and expensive, and Amazon provides sellers with three different advertising channels for increasing brand awareness and gaining sales opportunities. Whether you choose to use one or a combination of them, each one provides different avenues for reaching consumers and specific advantages.

Sponsored Products Ads 

The first thing you’ll likely see on a search results page is a Sponsored Products ad. They appear at the top of results, as well as alongside them and at the bottom of the page. They provide an excellent means of generating visibility and enticing people to check out your product. As the name implies, these are product-focused ads meant to increase sales. 

 

Sponsored Products ads feature your product’s photo, your title (or part of it), the average reviews, and your price. These components alone are enough to draw a consumer’s attention and give her enough information to know if the offering is worth pursuing. When it appears next to competitors with weaker reviews or higher prices, the ad can really stand out and steal some sales from those other brands. These ads primarily target consumers who are weighing different options and are ready to make a purchase. Brand awareness can be generated here as a bonus, but the primary objective is to drive sales. 

 

Where a Sponsored Products ad shows up relies on a variety of different factors. It isn’t just your keywords and your bids (although you still need to target the right keywords and offer a competitive bid). The impressions and clicks it earns also play a factor. The better your ad performs and the more sales your earn, the higher your ad placements will be.

 

Also, an increase in sales will also help boost your organic rank. Having greater visibility in organic search results will lead to receiving more impressions, views, and conversions. Our CEO Casey Gauss has often spoken about how sales and rank create a flywheel effect in which sales help increase organic rank, which helps boost sales, and the self-perpetuating pattern builds from there. 

Sponsored Brands Ads 

 

Being a recognizable brand means a great deal. Promoting your products is essential, but promoting your brand can help create a personal connection with consumers that paves the way to brand loyalty. 

 

While Sponsored Products ads will help with product promotion, Sponsored Brands advertisements will allow you to show the personality behind your brand. Previously known as Headline ads, these ads appear as a banner ad on a search results page (at the top, middle, or bottom). They include your logo, a headline, and three featured product ads, each of which link to their product pages. By clicking the ad, a consumer will be taken to your brand’s Sales page or a customized landing page that showcases your three products and some information about your business. 

 

Because of their size the information they convey, Sponsored Brands is an effective way to gain attention and establish your business as a market leader. This kind of presentation conveys the legitimacy of your brand and gives people a way of learning something about your brand. By telling a little about the story behind your business, you can motivate consumers to support your brand. These ads can also be used for seasonal campaigns. If your brand’s products go through sales spikes at certain times of year, running Sponsored Brands ads can start generating some attention to help ramp up your usual sales increases.

 

The target audience for these ads would be top-of-funnel consumers who are learning about the possible choices within a market. The goal is to plant a seed of awareness about your business and make a strong impression that can eventually lead to a sale when a consumer is ready to make a choice. 

Product Display Ads 

 

If you’re looking for some widespread exposure across a number of different placements, Product Display ads can make that happen. These ads appear not only on search results pages, but on product pages, the customer reviews page, and in Amazon’s follow-up emails to customers. So they cover a lot of ground and reach people at different stages of the sales process. 

 

Product Display ads are essentially a combination of Sponsored Products and Sponsored Brands ads. They’re used to promote a specific product, similar to Sponsored Products, but they’re similar in size and appearance to a Sponsored Brands ad. A Product Display ad will showcase one item, along with a headline, the product photo, your review count, and price. Similar to a Sponsored Products as, the aim is to gain some visibility and drive some sales. 

 

Unlike either of these ad types, Product Display ads don’t target keywords. Instead, they target products and consumer interests. When targeting products, you focus on competitors’ products or related products within your main category. Interests refer to the categories and subcategories a consumer has searched within. The more specific your target is, the better. Rather than just targeting “Pet Supplies” for a dog leash, you could specifically target the subcategory of “Standard dog leash” or “Retractable dog leash.” By focusing on one of these detailed subcategories, you’ll have a better chance at connecting with your ideal customers.

How Kinetic Can Help

 

Each of these ad choices offers effective ways of getting your products in front of consumers, but they each have various challenges, which Kinetic can help you solve. By providing you with a complete overview of all your PPC campaigns, you’ll be able to verify what’s working and discover what isn’t so you can build on your successes and make improvements where necessary. 

Keyword Targeting

Knowing the right keywords to target is vital to your ads’ visibility and performance. Otherwise, you’re wasting your budget on keywords you can’t compete for or that aren’t relevant to your product. Using Kinetic, you’ll be able to accomplish the following:

  • Find which keywords are performing the best for you and capitalize on their results. 
  • Discover new keyword opportunities that previously missed and expand your campaign’s visibility. 
  • Create automated tasks around your new targets. These customized keyword-related rules can raise or lower your bids based on your ACoS, orders, and clicks. The control is in your hands.

Controlling Spending

Once you have the right keywords targeted, you’ll need to ensure you’re spending efficiently. You might have an ad that’s getting some good exposure, but if it’s eating up your budget, you’ll be reducing your profit margin. Kinetic can help you avoid those problems in the following ways:

 

Monitoring Performance

One of the big PPC misconceptions today is that once a seller has an Amazon ad campaign underway, the hard work is over and all that’s left to do is watch the sales roll in. Unfortunately, it’s not that simple and this kind of approach will only lead to wasted spending and little to no success. Kinetic gives you the ability to view your campaigns at a broad overview perspective as well as at a deeper detailed level:

 

 
 
 
 
 
 Click here learn more about how Kinetic can energize your PPC campaigns and connect with your ideal consumers. Not interested in managing things yourself, let us do it for you with Kinetic Assist.

The Importance of Amazon Ad Placement Data and How to Benefit from It

Good Amazon PPC decisions can’t happen without good data. Any opportunity to gather valuable data about your ad campaign is an opportunity to grow your business. 

 

So if you’re struggling to build a profitable PPC campaign, analyzing the right data will help you develop some effective solutions. Or if you’re hitting your PPC goals, your data will be a crucial resource in keeping that success going. You may even find that your ads are missing some growth potential you weren’t aware of. 

 

Each ad placement—top of search, rest of search, or product pages—will deliver different amounts of traffic and could require different amounts of spending. The traffic you get on page 1 will be much different than on page 5. Understanding how your ad’s placement is paying off (literally) will help you know how well your campaigns are increasing your visibility. 

 

Whether you’re keeping a close eye on your ad placement or unsure of how to start, Viral Launch’s software tool Kinetic will give you the data you need to monitor your performance. It provides a simplified and agile means of managing your ad campaigns, allowing you to make improvements or adjustments quickly. Whatever your PPC goals, Kinetic will help you pinpoint the most effective placements for your ads and create sales-driving campaigns for your brand.

Why Amazon Ad Placement Data Matters 

When you’ve got a good ACoS, you might consider your PPC campaign a success and want to leave everything exactly as it is. Why fix what isn’t broken? All you need is some automation so you can set it and forget it.

 

The trouble is that what’s successful on Amazon now won’t deliver the same results a month, a week, or even a day from now. Taking a hands-off approach will inevitably lead to a loss in visibility and be a gift to your competitors. Monitoring, analyzing, and adjusting are all necessary tasks in a successful PPC campaign, and you’ll need to know which placements are giving you the best outcome and which keywords or ASINs are your best targets. 

Know Which Placement Leads to the Best Results 

After some effort, your ad is now finally appearing at the top of page one. You’ve taken a step up from the middle of search and expect to see a boost in visibility. As it turns out, you unexpectedly find that the middle of the page was better for your campaign, as it consumed less of your budget and led to a greater number of impressions. 

 

Your ideal ad placement will be dictated by your budget and PPC goals, as well as the data you collect. You’ll need to examine your ACoS and click-through rates, and determine which placement will deliver the best performance. An ad at the top of search will increase your product’s visibility, but the cost per click (CPC) will be more expensive. With lower placements, you’ll drive a lesser amount of traffic, but the clicks will be less expensive. Without knowing what each ad placement can deliver, you’ll be missing opportunities to connect with customers and narrow down your best placement spot.

Know the Keywords or ASINs That Deliver the Best Performance

Keywords aren’t just important to your products’ organic ranking. They’re also vital to getting your ads in front of your target audience. Your ad placement data can convey which search terms you’re competing the best for. You can then focus on those that will deliver the best return while pausing those that might not be very effective. 

 

Let’s say your ad is targeting three different search terms: 

 

  • Garlic press 

  • Garlic press stainless steel 

  • Garlic press and slicer in one 

 

For “garlic press,” your Sponsored Products as is showing up on the middle of page 5 and not getting many impressions. “Garlic press stainless steel” is giving you some visibility the middle of page 3, and “Garlic press and slicer in one” is the best of all on page 1. By knowing what’s getting the best performance, you can focus on maintaining that success and start creating plans to make improvements for campaigns that are struggling. 

 

In addition to ad placement data, other performance metrics will be crucial to growing the success of your campaigns, and Viral Launch’s Kinetic provides all of those metrics in an easily accessible format. This PPC software tool will allow you to gain insights into your campaigns to help you continue to meet your goals and pinpoint where any adjustments should be made. 

 

Kinetic: Simplified and Efficient PPC Campaign Management 

Your ad’s placement will tell you a lot about your campaign, but it’s up to you to unpack the data behind it. Our PPC tool, Kinetic, provides an efficient and in-depth way to evaluate your keywords, budget, structure and overall performance. By providing a full range of data no other tool provides, Kinetic will give you better control over your campaigns and strengthen their performance.

Sales, Spending & Placement Data

Knowing your best opportunities for growth should be an underlying goal for all your PPC campaigns. By telling you exactly where your ads are showing up, Kinetic can determine which placements are giving you the best performance. 

 

You can also learn whether product pages or search results are giving you the most visibility. If product pages are best, you can devise a strategy for targeting competitors’ products with a more expensive price than yours. With your ad running next to them, you could potentially steal sales from those brands. By using Kinetic in combination with Viral Launch’s Competitor Intelligence, you can research your competitors’ products and locate some untapped opportunities for growth. 

Kinetic also provides organic sales data, so you’ll be able to determine how your ads are helping boost your organic search rankings. The greater visibility your ads provide, the greater your sales will be, and an increase in sales will help improve your organic rank. Making improvements to your PPC campaigns will help increase your products’ visibility, and monitoring your ad placement data will be important to knowing where and how to make adjustments.

Manage and Maximize Your Bids and Budget

You can’t have a discussion about PPC management without talking about bids and budget. Keeping your spending as efficient as possible is an ongoing challenge, and Kinetic can help you tackle your budget challenges. 

 Kinetic’s customized automated rules will enable you to create thresholds for each campaign based around ACoS, clicks, orders, and ad rank. This customization isn’t limited to a few predefined functions. The flexibility it provides is unique to PPC software and puts all the control in your hands.

You can set your bids to increase or decrease based on specified conditions, such as if your ACoS is less than your breakeven ACoS and the click rate is larger than a certain amount. Or you can pause keywords that aren’t performing over a certain target. You can also add bid modifiers to target top or bottom of search and make adjustments to improve or maintain your PPC campaigns. 

 All of these automation features will help you reach your PPC goal, whether that’s a profitable campaign, a lower ACoS, increased organic rank, or all of the above. Kinetic gives you an endless amount of possibilities in the automation you can create to use your budget more efficiently and strengthen your ROI.

Monitor the Performance of Your Keywords

Targeting the right keywords is absolutely essential for your ad campaigns. Keyword research is an indispensable task and one that shouldn’t be thought of as something you only use at the beginning of a product launch. Making sure you’re targeting the right keywords for your products and ads should be an ongoing process. 

 The data Kinetic provides will tell you how well your ads’ keywords are performing and their profitability. You’ll be able to make decisions on which keywords should be paused, set as negatives, or broken out into their own campaigns. Any keywords driving a large amount of sales or consuming the majority of your budget are good candidates for having their own campaigns. By breaking them out, you can then increase your visibility and conversions, and Kinetic can help you manage those new campaigns. 

Kinetic also offers search term reports you can view, so you don’t have to rely completely on Seller Central. Unlike Seller Central, you can easily compare and flip between different date ranges within the tool, instead of having to download one report at a time. Whenever you need to compare your seasonal data to previous months or years, Kinetic is an ideal solution. The tool also enables you to more easily aggregate your campaign’s performance by search term, which is more complicated in Seller Central.

Improving and Refining Your Amazon PPC Campaigns 

Making the right decisions about your PPC ads depends on your ability to evaluate your keywords, budget, and performance. It’s vital to know how many impressions, views, or conversions your ad receives at different placements, whether top of search, rest of search, or product pages. By analyzing your spending data, click-through rates, and impressions, you can have a clear idea of how well your ads are performing.

 Whatever challenges you may be facing with your PPC campaigns, Kinetic will help you develop customized and effective solutions. In addition to ad placement data, the tool provides quality data on keywords, campaign performance, spending, and Sponsored ad rank. Designed to make your PPC management more efficient, it will help you find weaknesses, develop improvements, and put them in action.

The team here at Viral Launch is committed to providing Amazon sellers of all sizes with the resources for attaining long-term success. Our expertise has been built on tens of thousands of product launches, and Kinetic’s sophisticated but easy-to-use capabilities will help your brand achieve their PPC goals and simplify the challenges of advertising on Amazon.

 

 

Improve Your Amazon PPC Bidding Strategy and Energize Your Campaign

Landing an Amazon PPC ad at the top of page one of organic search results is no small accomplishment, and it’s the result of a series of smaller accomplishments. Targeting the right keyword, knowing the best placement, having a strong sales history, and making a winning bid are all essential to creating a successful campaign. 

 

And even after making those accomplishments, your work isn’t over. When it comes to bidding for Sponsored Products ads, you have to continually monitor your bids to ensure you’re not missing good opportunities or overspending for the conversions you’re getting. 

 

Avoiding the PPC pitfalls that will drain your budget and lead to a weak performance depends on following the right bidding strategy. Navigating Amazon’s PPC ecosystem is both complicated and expensive, so It’s important to have a complete understanding of the bidding capabilities Amazon provides and how you can take advantage of them. 

Amazon’s Dynamic Bidding Strategies 

Earlier this year, Amazon made news when it released three new ad bidding features that enable Amazon sellers to place bids on their Sponsored Products ad placements. These “dynamic” bidding capabilities take place in real time and will raise or lower your bids for you, based on a variety of factors, including your sales history and review count. These features help sellers compete in auctions where they’re likely to win or avoid spending budget where they’re not competitive. 

 

The three options are as follows:

 

  • Dynamic bids – down only: Your bids will be decreased when Amazon determines your bid won’t likely win the auction. This is based on historical campaign data.
  • Dynamic bids – up and down: Amazon will raise or lower your bid, depending on the competitors’ bids and whether you have the likelihood of winning.
  • Fixed bids: Here your bid remains static without changing. 

 

Making the best choice depends on your PPC goals. What you plan to achieve will guide your choice, such as if you’re looking to boost your sales or to run a profitable campaign.

 

Amazon also provides the Adjust Bids by Placement settings, which allow you to increase your bids even further depending on the placement. Top of search on page one and Product pages are the two offered settings, so you can enter a percentage, depending on how much you want to spend. When aiming for these specific placements, these adjustments can make your bids more competitive. 

 

Once you’ve got a strategy in place, Viral Launch’s new PPC management tool Kinetic can help you gather more data than any other software can provide and strengthen your campaigns. Being successful on Amazon requires more than just offering a great product at a competitive price. PPC ads are essential to having a profitable business in the Amazon marketplace, and Kinetic will help simplify the complexities of this challenging but vital task.

How Kinetic Can Help Your PPC Bidding Challenges

Monitoring and adjusting your PPC bids can be the most time-consuming part of your entire campaign. As an in-depth PPC management solution, Kinetic can simplify your monitoring activities, locate weaknesses, and help you make improvements. The tool provides an overview of how all your campaigns are performing and gives you an efficient means of controlling your PPC spending through its customized automation, saving you both time and budget.

Working with Amazon’s Bidding Strategies

Choosing the best strategy depends on your PPC goals and which stage your campaign is in. You also need to anticipate how competitive you’ll be in the auctions you’re bidding in. Doing some research will be a necessary step, and Kinetic will provide accurate, helpful data for structuring your ads. As your campaign grows and build some history, you’ll likely move from one Amazon bidding strategy to another.

Fixed 

We recommend starting a new campaign with Fixed since you don’t have any ad history built yet. Fixed bids are a good way to prevent spending money in auctions that you won’t likely win. This strategy will keep all your bids at the same amount. 

 

Amazon recommends using this strategy as a way of increasing product awareness, rather than conversions. The goal here would be getting your brand and products in front of as many consumers as possible in order to start earning sales later on. 

Down Only

Once you’ve begun developing some ad history, the Down Only option will help you start becoming more competitive. As the name implies, Amazon will only lower your bids in auctions where you aren’t likely to win. This is a good way to prevent spending money in auctions where you’re not competitive. 

 

As your ads begin generating some performance data, Kinetic can tell you which keywords are delivering the best performance so you can start devoting more of your budget to them in order to build on those gains. 

Up and Down

Once you’ve got some keywords driving a lot of conversions, this two-dimensional strategy is the best option. An Up and Down strategy should only be used if you’ve been in the market for at least a week and have built some ad history. If you use this for a new campaign, Amazon won’t have any basis for knowing if you’re able to convert for a particular keyword.

 

By letting Amazon increase or decrease your bids depending on the auction, you’ll be giving the keywords a greater chance to deliver. With this kind of strategy, you’ll need to plan to increase your spending, so you’ll come closer to, or actually reach, your spending threshold. 

 

If Up and Down is working well, you can create an automated rule in Kinetic to increase your budget to maintain the success. You may find that your cost per click (CPC) will vary, with some clicks being more expensive than others. You’ll be getting slightly fewer clicks, but for high-converting keywords, and spending more than you were at earlier stages of your campaign, but gaining more sales. 

Turning Non-delivering Keywords into Delivering Ones 

Running an efficient campaign requires adding any non-delivering keywords as negatives. You don’t want to devote any time or budget to anything that isn’t working. Although adding under-performing keywords as negatives is a necessary task, Kinetic can help with determining what isn’t working and if the fault is in your spending, not the keyword itself.

 

If you verify that you’re targeting a keyword that’s relevant to your product, any problems are likely due to your bid or budget being too low. As an example, if you have a 50-keyword set with a $20 per day budget, that means you’re spending less than a dollar for each of those keywords. By increasing your budget, you can start seeing some delivery on those keywords and use your budget more efficiently.

 

Also keep in mind that how much you bid determines which auction Amazon will put you in. 

Using Kinetic’s automation, if the impressions or clicks your ad is getting are less than a certain amount, you can increase your bids and participate in a more valuable auction. When that occurs, you’ll likely see some improved performance. Sometimes just increasing your bid, while staying within a certain range, can help an ad’s performance for a keyword or when trying to attain a certain placement.

Eliminating Overspending and Lowering Your ACoS

Increasing your spending isn’t always the right solution, and you might discover that you’re spending way too much for the impressions or views that your ad is getting.

 

Kinetic’s automated functions can help you control and improve any inefficient spending, such as any keyword that’s spending but not converting. If you’re working with a 50-keyword set, you may find that only 12 are converting. Based on Kinetic’s data, you can automate Kinetic to pause the other 38 keywords that aren’t converting and then determine whether they’re relevant to your product or if you need to adjust your price.

 

Controlling your ACoS is a typical challenge and if it’s too high, you’re paying too much per click or your conversion rate is too low. Let’s say you were targeting the first Sponsored Products ad position and seeing a low conversion rate there. The best solution would be to lower your bid to attain a lower ad position where you can pay less per click. Once you can achieve a relatively constant conversion rate, your ACoS will decrease, but the trade-off is that you’ll get less traffic at that position. This same kind of strategy can help when trying to create a profitable PPC campaign. The result will be a lower ad position, but one at a more profitable level that still drives enough traffic to earn a strong amount of conversions.

 

As another example, if bidding on a keyword is getting you to the first row of ads but with a high ACoS, you can set a rule to improve your spending. In Kinetic, you would create a rule that would decrease your keyword bid by 30 or 40% whenever your ACoS is greater than your breakeven ACoS and your click rate is greater than 20. Once this rule is in place, you can begin gathering data on its performance to see how well it’s working. When your ACoS drops, you can create a rule for maintaining that level of spend. 

Reducing Your Monitoring Frequency

Although Kinetic isn’t a “set it and forget it” kind of tool, it can free you up from checking your campaign’s spending, keyword performance, and placement throughout the day. Its automated rules can adjust or pause your spending based on the conditions you create, so you won’t be making manual adjustments in Seller Central. 

 

If you usually monitor your campaigns on a weekly basis to see how certain adjustments have performed, Kinetic can provide all the data you need and enable you to download search term reports, rather than using Seller Central. However frequently you choose to monitor your campaign, Kinetic will help you optimize it with adjustments that will improve your visibility and conversion rates. 

Learning Where You Can Best Compete

The keywords you target play a huge role in how successful your PPC ads are. Keeping a constant eye on the keywords your ads are targeting is one of the crucial tasks of monitoring your campaigns. 

 

In the past, the usual strategy was to bid for the top keywords in a product category. Since those were the main keywords, that was the most logical thing to do, but the outcome would be a low click-through rate and an even lower conversion rate. To add insult to injury, your organic ranking for that keyword would drop. 

 

A smarter strategy is to discover which keywords you can best compete for, and Kinetic can help you verify your targets or find missing opportunities. By targeting the right keywords, you’ll be giving yourself the best chance at conversions and avoiding wasted spend on the wrong choices. You’ll then be able to achieve some visibility and sales for your products, and in turn help boost your organic rank. 

 

Amazon’s algorithms are paying attention to every aspect of your PPC performance, so if you target keywords you can’t compete for, it will actually have a negative effect on your campaign. Instead, examine your data, find your best targets, and adjust your spending. 

Streamline Your Bid Strategies, Strengthen Your PPC Campaigns

Having a huge budget at your disposal, as great as that might be, doesn’t automatically mean your PPC ads will be successful. It’s your overall PPC strategy, including your bidding decisions, keywords and placement targets, that will determine the success of your PPC campaign. 

 

Whether you’re aiming to increase sales, boost brand awareness, or run a profitable campaign, Viral Launch’s Kinetic will help you achieve your PPC goals. Its automated features will give you greater control over your bidding tasks and help you use your budget more efficiently. You’ll also be able to quickly pinpoint weaknesses in your campaigns, make improvements, and increase your ads’ impressions, clicks, and conversions.

 

Amazon’s PPC advertising ecosystem is complicated, and PPC is a major challenge for any Amazon sellers, no matter the size of the business. Each of Viral Launch’s software tools can help your Amazon selling efforts, and as PPC becomes more important for business growth, Kinetic will be an indispensable asset in simplifying your advertising challenges. With this customizable tool, you can ensure your PPC campaigns are built on accurate data, an optimized structure, and competitive bidding strategies.

Click here learn more about how Kinetic can energize your PPC campaigns and connect with your ideal consumers. Not interested in managing things yourself, let us do it for you with Kinetic Assist.