What is Amazon PPC?

The short answer

Amazon PPC means pay-per-click advertising. Sellers pay Amazon to show their products in search results, and they are charged only when a shopper clicks the ad. If nobody clicks, you pay nothing.

Why sellers use it

PPC does two jobs. It buys visibility, putting your product in front of shoppers who may not have found it yet, which matters most for new products. It also gives you data. Every click and sale shows you what shoppers respond to, so you are not guessing.

How an ad gets shown

Each time a shopper searches, Amazon runs a quick auction among the sellers bidding on that search. The highest bid does not always win. Amazon also looks at how relevant your ad is, how good your listing is, and how your product has performed. Ads that are more likely to lead to a sale are favoured.

Ads appear as sponsored results. Results that earned their position on their own, through sales history, reviews and relevance, are called organic.

Three words you will meet first

Bid. The most you are willing to pay for one click. Your actual cost per click is often lower.

Search term. The exact words a shopper typed into Amazon. It can differ from the keyword you chose.

ACOS. Advertising Cost of Sales. Your ad spend divided by the sales those ads brought in, as a percentage. Lower means more efficient. What counts as acceptable depends on your profit margin.

Need another term? Look it up in the free PPC glossary.

Where to go next

If you want to get your first campaigns running quickly, start with The PPC Clarity Quick Start Guide, which walks you through it in seven steps. If you want the full picture of how it all works and why, start with The Amazon PPC Clarity Guide.

Not sure which fits? Answer two quick questions