{"id":1306,"date":"2018-01-22T07:00:16","date_gmt":"2018-01-22T07:00:16","guid":{"rendered":"https:\/\/staging.sellerapp.com\/blog\/?p=1306"},"modified":"2026-02-19T17:08:32","modified_gmt":"2026-02-19T11:38:32","slug":"amazon-ppc-basics","status":"publish","type":"post","link":"https:\/\/www.sellerapp.com\/blog\/amazon-ppc-basics\/","title":{"rendered":"What is Amazon PPC? How the Amazon PPC Auction Works"},"content":{"rendered":"\n

Fact:<\/em><\/strong> 79% of brands say that PPC is the primary driving factor for their business.<\/em><\/p>\n\n\n\n

With over 300 million<\/strong> shoppers actively browsing on Amazon, ready to buy, there is no better platform than Amazon to advertise your product.\u00a0<\/p>\n\n\n\n

If you have been selling on Amazon, you must have heard about Amazon PPC advertising.\u00a0<\/p>\n\n\n\n

It\u2019s the most powerful and cost-effective way to get your products in front of customers and drive sales.<\/p>\n\n\n\n

Now, if you are a newbie, you might wonder what Amazon PPC is and how does it work?<\/p>\n\n\n\n

Freight not!<\/p>\n\n\n\n

In this detailed guide, we\u2019ll cover all the basics of PPC and guide you to properly set up your first PPC campaign so you don\u2019t burn your advertising budget.\u00a0<\/strong><\/p>\n\n\n\n

So, let\u2019s get started.\u00a0<\/p>\n\n\n\n

Quick Overview<\/strong><\/p>\n\n\n\n

    \n
  1. What is Amazon PPC?<\/a>\u00a0<\/li>\n\n\n\n
  2. How does Amazon PPC work?<\/a><\/li>\n\n\n\n
  3. Why is PPC important for Amazon sellers?<\/a><\/li>\n\n\n\n
  4. Amazon PPC advertising: Key terms and features<\/a><\/li>\n\n\n\n
  5. Amazon PPC Ad Types<\/a><\/li>\n\n\n\n
  6. How to create an automatic Sponsored Product campaign<\/a><\/li>\n\n\n\n
  7. How to optimize automatic Sponsored Product campaigns<\/a><\/li>\n\n\n\n
  8. How to create a manual Sponsored Product campaign<\/a><\/li>\n\n\n\n
  9. How to optimize manual Sponsored Product campaigns<\/a><\/li>\n\n\n\n
  10. Final Thoughts<\/a><\/li>\n<\/ol>\n\n\n\n

    What is Amazon PPC?<\/h2>\n\n\n\n

    Amazon PPC is an advertising model that helps sellers and brands amplify their product sales online. Sellers can create ad campaigns for their products. And each time a potential customer clicks on the ad, Amazon charges a small fee to the seller.\u00a0<\/p>\n\n\n\n

    How does Amazon PPC Work in 2026?<\/h3>\n\n\n\n

    Before we delve deeper into Amazon PPC, it\u2019s essential to understand how it works and what are the key terms and features of PPC.<\/p>\n\n\n\n

    Here\u2019s a top-level overview of how Amazon PPC works:<\/strong><\/p>\n\n\n\n

      \n
    1. Shopper search on Amazon for \u201cwater bottle<\/strong>.\u201d<\/li>\n\n\n\n
    2. Amazon gathers all the relevant ads for the keyword \u201cwater bottle.\u201d<\/li>\n\n\n\n
    3. Sellers bid on the keyword, and the highest bidder wins the auction.<\/li>\n\n\n\n
    4. Amazon displays the winning Sponsored Product ad on the top of search results and the product details pages.<\/li>\n\n\n\n
    5. When a shopper clicks on the ad, the seller has to pay a small fee to Amazon.<\/li>\n<\/ol>\n\n\n\n

      Why is PPC important for Amazon sellers?<\/h3>\n\n\n\n

      Now that you understand Amazon ads, let\u2019s understand why it is important for your Amazon business.\u00a0<\/p>\n\n\n\n

      \u201cAmazon.com recorded 2.56 billion visits as of late 2025-2026, maintaining its position as one of the world\u2019s most visited e-commerce platforms.\u201d<\/p>\n\n\n\n

      As more and more consumers are shifting their shopping activities online, e-commerce giants like Amazon and its sellers have immense opportunities to grow their revenue. However, the growth potential also brings together the problem of visibility.<\/p>\n\n\n\n

      Since Amazon is a retail platform, users coming here are actively looking to make a purchase.\u00a0<\/p>\n\n\n\n

      But, if they don\u2019t find your product on the first page, 45% of buyers say they wouldn\u2019t bother scrolling through the rest of the pages.<\/p>\n\n\n\n

      \"amazon<\/figure>\n\n\n\n

      Amazon PPC ads help sellers bring their product to the top of the search result page, which otherwise might end up buried among a sea of competitors. <\/p>\n\n\n\n

      This leads to more sales and, in turn, improves the organic ranking of the product on Amazon <\/a>for each well-performing keyword.

      Sellers with no budget constraints can thus partner with a reputed       Amazon PPC agency<\/a> to maximize campaign output. For complete oversight including PPC, explore SellerApp\u2019s full Amazon account management<\/a>.<\/p>\n\n\n\n

      Amazon PPC: Key Terms and Features<\/h3>\n\n\n\n

      Here are some key metrics of Amazon advertising you should track:<\/p>\n\n\n\n