What is Amazon PPC and How Does It Work?

If you’re a seller on Amazon or planning to become one, there’s one thing you can’t ignore Amazon PPC. It’s one of the most effective ways to boost your product’s visibility and increase sales.

But here’s the problem many sellers either don’t know how Amazon PPC works or they end up wasting a lot of money because they don’t understand the system properly.

So in this blog, let’s break it down in a simple way no technical jargon, just real talk. I’ll walk you through what Amazon PPC is, how it works, different types of PPC campaigns, what it costs, and how you can make it work for you, not against you.

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What is Amazon PPC Advertising?

Amazon PPC stands for Pay-Per-Click. It’s Amazon’s own advertising system that allows sellers to promote their products directly on Amazon.

Whenever you search for something like “wireless earbuds” on Amazon, you’ll notice some products that show up right on top with a little “Sponsored” tag. That’s Amazon PPC in action.

The idea is simple:
You run ads for your products, and you pay Amazon only when someone clicks on your ad.

So instead of waiting for customers to discover your product organically, Amazon PPC helps you show up exactly where your potential buyers are looking.

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Why is Amazon PPC So Important?

There are millions of products on Amazon. Even if your product is great, chances are it will get lost in the crowd if you don’t market it.

That’s where PPC becomes your shortcut.

Here’s why sellers love it:

• You can get your product to the first page of search results
• It helps boost visibility and build early momentum
• It directly influences your organic ranking (because more clicks and sales improve your listing’s performance)
• You can track and control your budget in real-time

In short, Amazon PPC is not just an ad platform it’s a growth engine for serious sellers.

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Types of Amazon PPC Campaigns

There are mainly three types of PPC ads you can run on Amazon. Let me explain each with simple examples so it’s easy to understand.

1. Sponsored Products (Most Common)

These are the most popular and beginner-friendly.

• They appear in search results and product detail pages.
• You choose keywords (or let Amazon auto-target them).
• Example: You sell “organic green tea.” You bid on the keyword “green tea,” and your ad appears when someone searches it.

Best for: Sellers who want to push individual products.

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2. Sponsored Brands

These ads showcase your brand not just one product.

• They show your logo, a custom headline, and multiple products.
• Mostly appear at the top of search results.
• Example: You sell skincare products. Your ad shows your brand name, tagline, and 3 of your bestsellers.

Best for: Sellers with a brand registry and multiple SKUs.

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3. Sponsored Display

These are more like retargeting ads.

• They can appear both on Amazon and on external websites.
• You can target users who viewed your product or similar ones.
• Example: A buyer views your water bottle but doesn’t buy. Later, they see your ad while browsing another site.

Best for: Retargeting lost traffic or creating awareness outside Amazon.

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How Does Amazon PPC Work?

Okay, now that you know what Amazon PPC is, let’s understand how the whole system works behind the scenes.

It’s based on a bidding system, just like Google Ads. Here’s the step-by-step breakdown:

1. You Choose Your Targeting

You can either:

• Choose keywords you want to rank for (manual targeting), or
• Let Amazon pick keywords based on your product listing (automatic targeting)

2. You Set a Bid

You tell Amazon how much you’re willing to pay per click on a specific keyword. For example, if you bid ₹20 for “green tea,” and Amazon accepts it, your ad might show up when someone searches for it.

Important: You don’t always pay your full bid. You pay just enough to beat the next highest bid this is called a second-price auction.

3. Amazon Ranks Ads

Amazon considers:

• Your bid amount
• Relevance of your listing (title, keywords, images)
• Your ad’s click-through rate (CTR)
• Conversion performance

So, it’s not just about money. Even a lower bid can win if your product is well-optimized.

4. You Pay Only for Clicks

You don’t pay for impressions (how many times your ad was shown). You pay only when someone clicks your ad hence, Pay-Per-Click.

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How Much Does Amazon PPC Cost?

One of the biggest concerns sellers have is cost. So let’s talk about that.

There’s no fixed price for Amazon PPC the cost depends on your niche, competition, and bidding strategy.

Some cost factors:

• Niche: Highly competitive niches like electronics or beauty can cost ₹30–₹100 per click.
• Keyword competition: Popular keywords cost more.
• Ad type: Sponsored Brands and Sponsored Display usually cost more than Sponsored Products.
• Conversion rate: If your product doesn’t convert well, your ACoS (Advertising Cost of Sales) will go up.

Average CPC (Cost Per Click) on Amazon India ranges between ₹5 to ₹50, depending on your category.

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A Quick Note on ACoS and ROAS

You’ll hear these terms a lot in PPC:

• ACoS (Advertising Cost of Sale): This tells you how much you’re spending on ads to make a sale.
  Example: You spent ₹200 and made ₹1000 → ACoS = 20%
• ROAS (Return on Ad Spend): This is the reverse. It tells you how much revenue you’re making for every rupee spent.
  Example: You spent ₹100 and earned ₹400 → ROAS = 4x

Low ACoS or high ROAS = Good performance.

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Pro Tips to Make Amazon PPC Work for You

Just running ads is not enough. You need a plan. Here are a few things I’ve learned:

1. Start with Automatic Campaigns

They’re easy to set up and help you discover new keywords that convert. Later, you can use those insights for manual campaigns.

2. Use Negative Keywords

These are keywords you want to avoid. For example, if you sell premium products, you can exclude “cheap” or “low-cost” from triggering your ads.

3. Optimize Your Listing First

If your title, bullets, and images aren’t attractive, even PPC won’t save you. Make sure your product page is optimized before running ads.

4. Monitor and Adjust

Check your campaigns weekly. Pause underperforming keywords, increase bids on high-converting ones, and test different match types (broad, phrase, exact).

5. Don’t Expect Overnight Success

PPC takes time. The first few weeks are all about learning what works. Be patient and strategic.

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Conclusion

Amazon PPC is a powerful tool when used the right way.

It can boost visibility, bring in targeted traffic, and drive more sales. But if you jump in without understanding how it works, it’s easy to lose money.

Start small, test what works, and scale smartly. With the right strategy, Amazon PPC can help you grow from just another seller to a brand that stands out.