Newbies Must Know How to Avoid Amazon Advertising Traps, 99% of Sellers Step Into the Pitfalls

How New Amazon Sellers Can Avoid Common Advertising Pitfalls That 99% of Sellers Fall Into

On the Amazon platform, advertising is one of the key methods to increase product exposure and sales. However, for newcomers just starting out, advertising placement is often a challenging process. Many sellers, due to lack of experience, easily fall into various pitfalls in advertising placement, leading to wasted budgets and low conversion rates. This article will provide a guide to avoiding these pitfalls by combining case studies from some news reports.

Firstly, many new sellers tend to overly rely on automatic advertising. Automatic advertising is an ad format that doesn't require manual keyword settings; Amazon automatically matches relevant search terms based on product attributes. Although this method is easy to operate, its effectiveness is often unsatisfactory. According to a report released by a cross-border e-commerce platform, approximately 70% of new sellers initially relied mainly on automatic advertising for promotion. However, this approach has obvious problems automatic advertising may match irrelevant keywords, resulting in high click costs and low conversion rates. For example, a small-to-medium-sized seller from Shenzhen once said that his product was a children's toy, but after using automatic advertising, he found that many clicks came from adult users, which obviously could not lead to actual purchases. New sellers should start learning how to optimize manual advertising as soon as possible, improving ad efficiency by accurately targeting the target customer group.

Secondly, neglecting advertising budget management is another common mistake made by new sellers. In Amazon advertising, budget allocation directly affects the performance of ads. If the budget is set improperly, it may result in two extreme situations either too much budget causing funds to be quickly depleted, or too little budget reducing ad display opportunities. According to industry data analysis, about 65% of new sellers struggled with poor budget management in their first three months. For instance, there was a news report about a new seller who, in order to quickly improve rankings, invested a large amount of money in bidding ads at once. Not only did they fail to achieve expected returns, but they also incurred serious losses. The correct approach is to plan daily budgets reasonably according to sales data and market feedback, and regularly adjust them to adapt to seasonal changes or competitor behavior.

Thirdly, new sellers often overlook monitoring and analyzing ad performance. Amazon provides rich reporting tools to help sellers understand the effectiveness of their ad campaigns. However, many sellers, due to impatience or lack of technical knowledge, often only focus on surface-level data, such as clicks and spending, while ignoring deeper metrics like click-through rate CTR, conversion rate, and Advertising Cost of Sale ACoS. News mentions that a startup company missed the best time to adjust strategies because it didn't check reports within the first two weeks after ad, ultimately leading to a continuous decline in ad ROI Return on Investment. It is recommended that new sellers spend a certain amount of time each day checking ad performance, identifying problems, and taking corresponding measures. For example, ad performance can be optimized by increasing bids on high-potential keywords and reducing the frequency of ineffective keyword exposure.

Finally, be wary of the risks of blindly following trends. In the Amazon community, there are often various shares about successful ad case studies, and some sellers blindly imitate them, only to end up with the opposite results. There was an example mentioned in the news a new seller saw a successfully obtain a large number of orders through a specific type of ad and copied it, only to find that their own product completely failed to meet the needs of this type, adding unnecessary expenses. Each seller’s product characteristics differ, so the suitable ad strategy also varies. New sellers need to flexibly use ad tools based on their own circumstances instead of blindly pursuing imitation.

In summary, Amazon advertising presents both opportunities and challenges for new sellers. Only by thoroughly understanding the ad mechanism, scientifically planning budgets, closely monitoring performance, and maintaining independent thinking ability can common ad pitfalls be effectively avoided. It is hoped that every new seller can learn lessons from this and gradually grow into mature Amazon operators.