The Power of Amazon Advertising: How It Boosts Organic Sales and Total Revenue

February 7, 2025   Amazon Advertising

Understanding Total Amazon Sales Formula

When selling on Amazon, your Total Sales can be broken down into two key components:

Total Amazon Sales = Advertising Sales + Organic Sales

  • Advertising Sales: These come from direct purchases made through Amazon-sponsored ads.
  • Organic Sales: These are purchases made without any paid advertising, typically from customers finding your product through search results at Amazon.

How to Increase Organic Sales with Amazon SEO

Organic sales can be increased by optimizing your product listing to increase the Amazon SEO ranking. This involves the following:

1. Create keyword optimized and attention grabbing product title
2. Create 7-8 infographics to convince the customer buying your product
3. Write attention grabbing bullet points and add keywords related to your product
4. Create a full landing pages in the EBC (enhanced brand content) or A+ content with lots of beautiful pictures

While it may seem tempting to focus solely on organic sales, running Amazon Advertising plays a crucial role in improving your product’s ranking, leading to higher organic sales over time.

Without Amazon Advertising Your Organic Ranking and Sales will increase slow as a snail

Amazon’s A9 algorithm prioritizes products with higher sales velocity and better engagement metrics. When you run Amazon PPC (Pay-Per-Click) campaigns, you increase visibility and attract more buyers. Here’s what happens:

  1. More Clicks and Conversions→ When customers click on your sponsored ads and buy, Amazon registers your product as a relevant and high-demand item.
  2. Higher Organic Ranking→ Increased sales signal to Amazon’s algorithm that your product deserves a higher position in search results.
  3. More Organic Sales→ As your ranking improves, more customers discover your product naturally, leading to an increase in organic sales.

Example Scenario:

Imagine you sell a set of kitchen knives and launch an Amazon PPC campaign targeting relevant keywords. The paid ads generate immediate sales, improving your ranking. Over time, your product moves from page 5 to page 1, resulting in a surge of organic sales.

The Benefits of Amazon Advertising

Investing in Amazon Advertising brings multiple advantages beyond just increasing sales:

1. Higher Visibility and Brand Awareness

Your product appears at the top of search results, increasing exposure and making it easier for customers to find.

2. Faster Product Launch Success

New listings struggle to get organic traction. PPC ads jumpstart sales, helping your product gain momentum faster.

3. Beating the Competition

Amazon is highly competitive. If your competitors are running ads and you’re not, their products will outrank yours, reducing your chances of getting sales.

4. Controlling Keyword Rankings

With PPC, you can target high-converting keywords that lead to more relevant traffic and sales.

5. Improved Profitability in the Long Run

As your organic sales increase, your reliance on ads decreases, reducing advertising costs while maintaining revenue.

What Happens If You Don’t Use Amazon Advertising?

Neglecting Amazon PPC can have serious consequences for your business:

  • Lower Visibility→ Your product remains buried in search results, reducing exposure to potential customers.
  • Slower Sales Growth→ Without paid ads, sales velocity remains low, making it harder to rank organically.
  • Competitors Take Over→ Competitors who run ads will dominate the top positions, leaving your product behind.
  • Difficulty Launching New Products→ Without initial sales traction, new products struggle to gain visibility and reviews.
  • Missed Opportunities→ Amazon shoppers often buy what they see first—without ads, your product won’t reach its full sales potential.

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Conclusion

Amazon Advertising is not just about paid sales—it’s a powerful strategy to boost organic rankings, increase long-term sales, and dominate your market. Without it, you risk falling behind competitors and missing out on potential revenue.

To maximize success:

  • Start with Sponsored Products
  • Optimize bids and target high-converting keywords.
  • Continuously monitor and adjustfor the best results.

By leveraging Amazon PPC, you create a snowball effect—more ad sales lead to higher rankings, resulting in more organic sales and higher overall revenue.

 

 




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