Sellers often ask us “Which is better; organic traffic or paid traffic?” The answer is neither. Yup, seriously. Here’s why.
It’s easy to think in terms of “organic vs paid traffic” as if they exist in a vacuum and work independently of each other. But the fact of the matter is they work together to increase overall traffic and conversion, and ultimately, sales.
That’s why you shouldn’t fall into the trap of thinking of organic traffic as “free” because it isn’t totally free as you’ll find out.
But before I dive in and discuss three Amazon Advertising strategies that can help increase organic traffic and, therefore, sales, let’s remind ourselves how ranking works on Amazon.
When a customer types in a search term, Amazon has to decide out of the millions of products to choose from, which ones should it show in position 1, position 2, position 3 and so on.
There three main factors that influence this are:
Sales Volume: this is the quantity or number of products sold in a specified period;
Sales Velocity: Amazon defines this as the number and dollar amount of a seller’s transactions during any given month. The more sales you produce on Amazon, the higher you will rank.
Conversion: how well you sell. Period.
When combined, how do these three factors influence organic ranking? Think of it like this. More sales for you means more sales for Amazon which means higher organic rankings. It’s that simple.
So how can you get more organic sales by running Amazon Ads? Here are three ways:
1. Use PPC To Get More Product Reviews
Product reviews are the lifeblood of your Amazon business. How do you get reviews? Through sales. But if your product is new or struggling to get to the top of search, the next best option is to drive sales through PPC.
Because paid traffic helps to boost the visibility of your products and increase sales, this will, in turn, generate product reviews. Reviews are hugely important for conversion, so as your reviews improve your conversion over time, this will help improve organic ranking and the cycle continues.
2. Use Your Search Term Report to Optimize Your Product Listing
Keyword research is essential for any Amazon seller who wants his or her products to rank highly in the search results.
But all the keyword research tools in the world can't compete with the real sales data we get from PPC in the form of Search Terms Reports.
The keywords provided in Search Term Reports is Amazon telling us with the exact words that customers are using to find and buy our products!
Using this data to regularly update and optimise your product listings will improve the relevancy and conversion of both your product listings and your ads, which will in turn help improve organic ranking and sales, and the cycle continues.
3. Improve PPC Conversion
Driving poor quality paid traffic to your product listings because you have lots of irrelevant keywords in your campaigns, can actually harm your listings conversion rates and in turn, harm your organic rankings.
Conversely, driving highly relevant traffic can increase conversion, improve organic ranking and sales and the cycle continues.
Conversion is a critical component of organic ranking and PPC is a highly effective way of influencing it.
Here’s an example to illustrate. Let’s say your PPC campaigns convert at 10%. With a $30 product, an average CPC of $1 and an ad spend of $1000, you will generate $3000 in ad sales. Not bad.
Now double that conversion to 20% through improved keyword targeting and improved campaign optimization. The same $1000 in ad spend now generates $6000 in sales - that’s double the sales for the same spend! Which scenario do you think will contribute to a better rank organically?
As you can see, understanding the relationship between organic traffic, conversion and sales and their paid PPC counterparts, is really important.
That’s why having a solid PPC strategy is crucial to driving traffic, increasing your ranking and your success on Amazon as a whole.
Is driving organic sales one of your Amazon Advertising strategies? Leave a comment below and tell me about it.
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