Whether you are a customer or a seller on Amazon, the world’s largest online retailer, there’s quite a bit about the company’s advertising that you should understand in order to confidently purchase both products and ads.
So let’s find out: What does sponsored mean on Amazon?
For consumers, Amazon’s sponsored products appear for an item or keyword that you have searched for, and this means that sellers have paid for the advertisement and have met the many requirements of Amazon in order to be featured as a sponsored item.
In this article, we are going to discuss whether or not you should purchase sponsored items on Amazon, if they are safe, better, and even how to reduce the number of sponsored items on your searches!
Many consumers worry that sponsored items from Amazon are not actually the best option for their desired item but instead paid for advertising to increase a certain seller’s revenue.
But the truth is that Amazon’s sponsored products are often a great option and you can confidently purchase a sponsored item knowing they are arriving from a trusted seller.
It’s important to note that sellers have to pay to have their items sponsored on Amazon, but they also need to be approved by Amazon, meaning they need to have good reviews and certified products.
All in all, you certainly can trust Amazon’s sponsored products, and in most cases, you should opt for a sponsored item over another option.
Sponsored products on Amazon are not only safe to buy, they are actually even more trusted than non-sponsored products as Amazon has reviewed the seller and ensured their products are well received by customers.
As you now know, sellers who pay to advertise their products as sponsored on Amazon need to meet several criteria; here is a list of what a seller needs to offer to offer sponsored items:
- Fair and comparable pricing.
- Consistent and on-time deliveries of previous sales.
- Great reviews from clients.
- High sales and great customer satisfaction.
- Have adequate stock of advertised items.
Now that you understand what sponsored items on Amazon actually are, the requirements for sellers to offer sponsored products, and even that you should probably opt for a sponsored product for your purchase, let’s find out if they are actually better products!
Are Amazon Sponsored Products Better?
Here’s the thing, Amazon sponsored products are not necessarily better products than other options on the site, but they are most likely being sold by better sellers.
There are over 2.6 million active third-party sellers on Amazon and they are certainly not all offering the same value and reliability. While it can often be challenging to figure out which third-party sellers are trustworthy and dependable, opting for a sponsored product is one way to ensure you are making a purchase from a reputable seller.
If you do not want sponsored products to appear on your Amazon search pages because you do not want to be swayed in any direction and simply want the first results for your keywords, there is a way to reduce the number of sponsored products you see.
The simplest way is to follow these instructions:
- Navigate to the Accounts and Lists menu on the top right corner of Amazon’s website or app.
- Select Emails, Alerts, Messages, & Ads.
- Click Advertising Preferences.
- Select Do Not Personalize Ads From Amazon For This Internet Browser.
- Then click Submit.
You may still see some sponsored products at the top of your search page if they are relevant, but the amount will be greatly reduced and the ads will no longer pop up on the sides of your screen.
Another option to completely delete all ads and sponsored products from your Amazon account is to opt for an Amazon ad blocker app which can be installed as a browser extension.
So far, we have focused on what sponsored products on Amazon mean for the consumer, and now it’s time to find out what it costs to sponsor your item on Amazon if you are a seller!
How much it costs to sponsor your item on Amazon depends on several factors including chosen keywords, manual versus automatic targeting, and the cost per click of your item.
Realistically, the minimum cost per day for sponsored items on Amazon is $1, however, the company recommends a higher price point of up to $10 to ensure your items stay at the top of the search all day.
In regards to keywords, the average cost is $0.20 for noncompetitive keywords, up to $2 for medium competitiveness, and for extremely competitive keywords, they could be as high as $6.
Reports have shown that opting for purchasing sponsored ads on Amazon is definitely worth the cost for sellers.
By paying for sponsored ads on Amazon, you not only show the informed client that you are a trusted Amazon third-party seller, but your products also make it to the top of the search page consistently, increasing sales even if the consumer does not fully understand what sponsored products are.
Amazon has thousands of products available for each and every keyword, and studies show that customers are far more likely to choose one of the first products they see as opposed to cycling through the many pages of options.
If your product is at the top of the list as it is sponsored, it is far more likely to be purchased.
When you see a sponsored product on Amazon, it means that the item not only has the keywords you searched for, but also that it is being sold by a trusted and dependable seller who paid for the space and who meets the requirements of Amazon’s promoted sellers.
Welcome to CompanyScouts! I am Jake, the founder of CompanyScouts. I hold an Msc in Economics and Business Administration. With a deep interest in the consumer segment, I strive to help people get to know their favorite companies even better.