What Is Amazon PPC and How Does It Work? – A Beginner’s Guide

Ever wondered how some sellers always show up at the top of Amazon search results? The answer is simple: Amazon PPC.

If you’re new to Amazon selling or still trying to understand how ads work on the platform, this guide explains it all in simple terms. No complicated jargon, just clear information that helps you understand how PPC works and how you can use it to grow your business.

What is Amazon PPC?

• Amazon PPC, or pay-per-click, is the advertising system on Amazon whereby you pay only when someone clicks on your ad.
• Your ads can appear in search results, on product pages, and even on external websites for some ad types.
• Think of it as renting the top spot on Amazon: the more relevant your ad, the more likely it is to get sales.

Why Amazon PPC Matters

• It helps your product stand out from the competition.
• It increases the visibility of new products.
• It increases sales, even within competitive categories.
• It helps Amazon understand that your product is relevant, too, which also helps organic ranking.

This is why brands that use PPC properly grow faster than those that rely solely on organic traffic.

How Amazon PPC Works

• The process is pretty straightforward in nature:
• You choose keywords: for example, “wireless earbuds.”
• Your ads appear when customers search for those keywords.
• If the customer clicks, you pay a small fee.
• If they buy, you earn a profit.

Amazon shows the ad that is most relevant and performs the best. That’s where a good PPC strategy comes in.

Types of Amazon PPC Ads

Amazon offers several formats of ads. Here are the key ones explained in simple words:

1. Sponsored Products

These ads appear alongside individual products in search results.

Example: When a person searches for “running shoes,” the first few listings labeled “Sponsored” are Sponsored Product ads.

Best for:

• New products
• Increasing sales
• Keyword targeting

2. Sponsored Brands

These ads show your brand logo + headline + multiple products at the top of search results.

Best for:

• Building brand awareness
• Showing 2–3 products together
• Making your brand look premium

3. Sponsored Display

These ads allow targeting shoppers based on:

• Their interests
• Their browsing behavior
• Competitor product pages

 

They appear on:

• Product detail pages
• Amazon homepage
• Third-party websites (externally)

Best for:

• Retargeting
• Competitor targeting
• Cross-selling

4. Sponsored TV Ads

Recently, Amazon launched Sponsored TV ads that will appear on:

• Amazon Prime Video
• Freevee
• Fire TV
• Live streaming sports

These ads help brands reach big audiences, build trust, and make products look more premium.

Best for:

• Large brands
• Fast-growing sellers
• High-ticket products

How Much Does Amazon PPC Cost?

• There is no fixed price.
• You set your own budget and place your own bids.
• You only pay when someone clicks your ad — not when it is shown.
• Costs depend on the competition, keyword demand, and product category.

 

 

 

How to Make Amazon PPC Work Properly

Successful PPC comes from:

• Targeting the right keywords
• Using negative keywords
• Optimizing Bids
• Tracking ACOS and ROAS
• Running advertisements continually

If you don’t optimize, you can lose money fast.

How eCom Managers Help Sellers Win with PPC

Many sellers struggle with PPC because it’s time-consuming and requires a deeper understanding of Amazon’s system.

This is where eCom Managers make a huge difference.

Here is how eCom Managers handles PPC:

• Doing keyword research with advanced tools
• Competitor analysis
• Set up campaign structure
• Daily optimization
• Negative keyword filtering
• Bid changes based on data

Scaling profitable keywords

• Lower wasted ad spend
• Leverage AI-powered PPC automation.
• Clear weekly reporting

Due to their data-driven methodology, sellers get:

• Lower ACOS
• Higher ROAS
• More orders
• Faster organic rank
• Growth Consistently

Whether you’re just getting started or you’re already running ads, eCom Managers makes PPC easier, faster, and more effective.

Final Thoughts:

Amazon PPC is one of the most powerful tools for growing your sales. Once you understand how it works – and use the right ad types – you can scale your brand faster than ever. But PPC needs proper management. You can lose a lot if it’s not handled correctly.

That is why many sellers opt for agencies like eCom Managers, which specialize in Amazon PPC and deliver genuine results through AI-powered optimization.