{"id":11786,"date":"2018-05-10T15:58:20","date_gmt":"2018-05-10T14:58:20","guid":{"rendered":"http:\/\/www.repricerexpress.com\/?p=11786"},"modified":"2020-09-24T12:23:17","modified_gmt":"2020-09-24T11:23:17","slug":"spend-amazon-ppc","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/","title":{"rendered":"How Much Should FBA Sellers Spend on Amazon PPC?"},"content":{"rendered":"<p><strong>You remember the story of Goldilocks, right? She broke into a house, stole food from the occupants, and use their property without permission. But the story also told an important lesson: there\u2019s that sweet spot in the middle where things are just right. You can apply Goldilocks\u2019s lesson when it comes to your <a href=\"http:\/\/www.repricerexpress.com\/amazon-ppc-campaign\/\">Amazon PPC campaigns.<\/a><\/strong><\/p>\n<h2>First, Analyse Your Amazon PPC Budget<\/h2>\n<p>At its simplest, a budget consists of:<\/p>\n<ul>\n<li><strong>Costs<\/strong> How much do you have to pay to stock your inventory, pay your employees (and yourself) and pay for services to run your business?<\/li>\n<li><strong>Revenue<\/strong> Only the amount of money coming in from what you\u2019re selling.<\/li>\n<li><strong>Profit margin<\/strong> How much money is in between your costs and revenue.<\/li>\n<\/ul>\n<p>But let\u2019s take a look at <a href=\"http:\/\/www.repricerexpress.com\/good-profit-margin-on-amazon\/\">Amazon profit margin<\/a> first.<\/p>\n<p>Amazon has a revenue calculator you can use to quickly assess what your profit margins will be. There are other <a href=\"http:\/\/www.repricerexpress.com\/12-great-amazon-tools-for-sellers\/\">seller tools<\/a> you can use, but this one\u2019s great because all you have to do is input the fields and it does all the work for you.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-11861\" src=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/05\/fba-calculator.jpg\" alt=\"Amazon FBA calculator\" width=\"893\" height=\"907\" srcset=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/05\/fba-calculator.jpg 893w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/05\/fba-calculator-295x300.jpg 295w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/05\/fba-calculator-768x780.jpg 768w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/05\/fba-calculator-66x66.jpg 66w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/05\/fba-calculator-200x203.jpg 200w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/05\/fba-calculator-400x406.jpg 400w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/05\/fba-calculator-600x609.jpg 600w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/05\/fba-calculator-800x813.jpg 800w\" sizes=\"(max-width: 893px) 100vw, 893px\" \/><\/p>\n<p>You\u2019ll also want to look at how competitive each product and category is when thinking about how much to spend on your Amazon PPC advertising, as well as how much of overall sales results from the PPC campaign.<\/p>\n<h2>Second, Take a Look at The Temperature of the Product and Its Industry<\/h2>\n<p>In general, we like the 25\/25 rule. It can be a little complicated, so let\u2019s work in reverse.<\/p>\n<p>Let\u2019s say you earned $1,000 in product sales last week. One-quarter of that (or 25%) resulted directly in the money you spent on your PPC, which is $250. When you were writing out how much to spend on your PPC, you anticipated getting $250 in sales from that, so you spent 25% of your Advertising Cost of Services (ACoS) on it, which is $62.50.<\/p>\n<p>So, 25% of your ACoS should lead to 25% of your product sales coming from the PPC. The numbers can get a little swim-y, which is why it\u2019s easier to work backwards from your expected sales. Having said that, there are a few exceptions.<\/p>\n<ul>\n<li><strong>Competitive Category:<\/strong> Some products will reside in categories that are naturally more competitive in others. This may cause you to increase how much you spend on your Amazon PPC so that you get more sales and, more importantly, more visibility and recognition.<\/li>\n<li><strong>Unique Identifiers:<\/strong> Try and narrow down your keyword search as specifically as possible. If you\u2019re selling dog coats, using that term might result in a ton of listings. But if you enter in \u2018small dog coats\u2019, you\u2019re going to narrow the scope. And by doing that, you can set yourself apart and make your PPC be even more targeted and efficient.<\/li>\n<\/ul>\n<p><strong>Related:\u00a0<\/strong><a href=\"http:\/\/www.repricerexpress.com\/amazon-seo\/\">9 Tips to Boost Your Amazon SEO and Keyword Research<\/a><\/p>\n<h2>Third, Regular Analyse Your PPC Reports<\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-11658 size-full\" src=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/03\/project-management-team-e1525964231528.jpg\" alt=\"Analyse reports\" width=\"871\" height=\"506\" srcset=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/03\/project-management-team-e1525964231528.jpg 871w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/03\/project-management-team-e1525964231528-300x174.jpg 300w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/03\/project-management-team-e1525964231528-768x446.jpg 768w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/03\/project-management-team-e1525964231528-200x116.jpg 200w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/03\/project-management-team-e1525964231528-400x232.jpg 400w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/03\/project-management-team-e1525964231528-600x349.jpg 600w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2018\/03\/project-management-team-e1525964231528-800x465.jpg 800w\" sizes=\"(max-width: 871px) 100vw, 871px\" \/><\/p>\n<p>Knowing how to create an efficient Amazon PPC campaign is only half the battle; the other half is knowing <em>why<\/em> what worked and what didn\u2019t. And this is where your reports come in. They\u2019ll help you understand your past mistakes and successes, and how to shape your future campaigns.<\/p>\n<p>Reports show the last 60 days, so it\u2019s terribly important to stay on top of them so you don\u2019t miss potentially crucial details. If you\u2019re forgetful about something like this, schedule a reminder on your calendar to download your report every other month.<\/p>\n<p>Another thing to keep in mind is how long you should wait before making a change. We mentioned reports showing the last 60 days\u2019 history, but that doesn\u2019t necessarily mean you should apply the lessons from the last two months into changes for the next two.<\/p>\n<p>There will be factors that influence the success of your PPC campaign, like seasonality, product popularity, brand visibility, social media effects, and other long-term shopping trends.<\/p>\n<p>Let\u2019s go back to our dog coats example. When it\u2019s a gorgeous 25\u00b0 outside, no dog is going to need a fleece-lined coat. So, you\u2019re going to see slower sales during June, July and August. Don\u2019t use that slow time to drastically alter your approach, as you should expect to see an uptick in sales for September, October and the following months. It\u2019s important to keep both a short- and long-term view in mind.<\/p>\n<h2>Amazon Repricing Software<\/h2>\n<p>Another factor that can indirectly influence your Amazon PPC campaign is how much your products <em>cost<\/em>. Go too high, and buyers will click past you. But go too low, and you risk being seen as cheap and not worth it. Luckily, <a href=\"http:\/\/www.repricerexpress.com\/\">RepricerExpress<\/a> allows you to create many rules so you can find that sweet Goldilocks zone and maximise your sales. To learn more and <a href=\"https:\/\/dashboard.repricer.com\/register\/do\/repricer?utm_source=rex-blog&amp;utm_medium=referral&amp;utm_campaign=rex-to-repricer-registration&amp;utm_activity=take-action\">get the first 15 days free, register now<\/a>. See what <a href=\"http:\/\/www.repricerexpress.com\/repricing-software-reviews\/\">other sellers are saying<\/a>.<\/p>\n<p><a href=\"https:\/\/dashboard.repricer.com\/register\/do\/repricer?utm_source=rex-blog&amp;utm_medium=referral&amp;utm_campaign=rex-to-repricer-registration&amp;utm_activity=take-action\"><img decoding=\"async\" class=\"wp-image-11085 size-large aligncenter\" src=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-768x330.png\" alt=\"Free trial\" width=\"1024\" height=\"440\" srcset=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-768x330.png 768w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-300x129.png 300w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-1024x440.png 1024w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-200x86.png 200w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-400x172.png 400w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-600x258.png 600w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-800x344.png 800w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-1200x516.png 1200w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p><strong>Related:<\/strong> <a href=\"http:\/\/www.repricerexpress.com\/amazon-ppc-campaign\/\">A Beginner\u2019s Guide to Structuring Your Amazon PPC Campaign<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You remember the story of Goldilocks, right? She broke into a house, stole food from the occupants, and use their property without permission. But the story also told an important lesson: there\u2019s that sweet spot in the middle where things are just right. You can apply Goldilocks\u2019s lesson when it comes to your Amazon PPC [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":10955,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7,8,9],"tags":[],"class_list":["post-11786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-amazon","category-fba","category-news","category-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Much Should FBA Sellers Spend on Amazon PPC?<\/title>\n<meta name=\"description\" content=\"Deciding how much to spend on Amazon PPC is something that sellers struggle with. Learn more in this informative guide to all things Amazon PPC\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Much Should FBA Sellers Spend on Amazon PPC?\" \/>\n<meta property=\"og:description\" content=\"Deciding how much to spend on Amazon PPC is something that sellers struggle with. Learn more in this informative guide to all things Amazon PPC\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/\" \/>\n<meta property=\"og:site_name\" content=\"RepricerExpress\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/repricerexpress\" \/>\n<meta property=\"article:published_time\" content=\"2018-05-10T14:58:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-09-24T11:23:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/09\/amazon-reports.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"880\" \/>\n\t<meta property=\"og:image:height\" content=\"587\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Seamus Breslin\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Seamus Breslin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/\"},\"author\":{\"name\":\"Seamus Breslin\",\"@id\":\"https:\/\/www.repricerexpress.com\/#\/schema\/person\/3a136b67199cecf1cc48ce34d50ef4bc\"},\"headline\":\"How Much Should FBA Sellers Spend on Amazon PPC?\",\"datePublished\":\"2018-05-10T14:58:20+00:00\",\"dateModified\":\"2020-09-24T11:23:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/\"},\"wordCount\":819,\"publisher\":{\"@id\":\"https:\/\/www.repricerexpress.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/09\/amazon-reports.jpg\",\"articleSection\":[\"Amazon\",\"FBA\",\"News\",\"Tips\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/\",\"url\":\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/\",\"name\":\"How Much Should FBA Sellers Spend on Amazon PPC?\",\"isPartOf\":{\"@id\":\"https:\/\/www.repricerexpress.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.repricerexpress.com\/spend-amazon-ppc\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/09\/amazon-reports.jpg\",\"datePublished\":\"2018-05-10T14:58:20+00:00\",\"dateModified\":\"2020-09-24T11:23:17+00:00\",\"description\":\"Deciding how much to spend on Amazon PPC is something that sellers struggle with. 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