Amazon Product Ads Rolls Out New Bidding Model
Recently Amazon Product Ads released a new bidding model. This model is much like that of Shopping.com’s that takes into account various price points of specific categories. The following is a message sent out to Amazon Product Ads retailers.
Dear Product Ads seller,
On September 30, 2010, we will be changing to a new, more flexible cost-per-click pricing model that takes into account the price of the advertised product. We believe the new model will better align our minimum bid structure with the price of the product you advertise to make Products Ads an even more efficient marketing channel for you. If you have either stopped advertising lower priced products through Product Ads in the past or have decided not to advertise lower priced products due to cost concerns, we recommend that you consider listing those products under the new pricing model.
Under the new pricing model, each product category will be divided into three price tiers based on the price of the product being advertised. For example, the “Baby Products” category will be divided into three subcategories that consist of (1) baby products priced under $25 (with a minimum bid amount of $.10 CPC), (2) baby products priced between $25 to $50 (with a minimum bid amount $.25 CPC), and (3) baby products priced over $50 (with a minimum bid amount $.50). This will give you the opportunity to list more selection across all price points.
To see what this new pricing model will look like and edit your bids prior to September 30, 2010, go to https://sellercentral.amazon.com/advertiser/biddingUI/?itemID=200137680 (log in required). If you do not change your bids (in the Manage New Bids Section) by September 30, 2010, they will be automatically set to the new minimum bids, so please consider whether the new minimum bid amounts are acceptable to you.
Bids set in the new pricing model will be reflected in your Performance by SKU reports and in your invoices generated after September 30, 2010.
If you have concerns about the new pricing model or changes to your minimum bid amounts, or you believe you have been overcharged, please contact our support team using the Contact Seller Support link located at the bottom of any page in your Seller Central account.
Best Regards,
The Amazon Product Ads team
This change will help you lower your cost of sale percentage, especially if you sell inexpensive products in traditionally expensive cost-per-click (CPC) categories. Amazon Product Ads, recently named the best converting comparison shopping engine but also the engine with the highest average CPC rates, is taking proactive steps to improve the marketing channel they provide to merchants. If you don’t have your products listed there, do so today.
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