What is Amazon PPC? A Guide For Beginners

 If you sell on Amazon, you’ve probably come across Amazon PPC — maybe even run a few campaigns yourself. But what is it, really? How does it work behind the scenes? And more importantly, how do you use it to actually drive sales and boost profits without burning through your budget?

As sellers ourselves, we’ve been in the trenches with Amazon PPC — seen what works, what doesn’t, and where the money gets wasted. So in this blog, we’re breaking it down in plain English.

Let’s break it down simply.

What Does Amazon PPC Mean?

Let’s start with the basics – Amazon PPC stands for Pay-Per-Click and it’s a type of advertising where you only pay when someone clicks on your ad. These ads appear in search results or on product pages. Unlike display ads that charge per impression, PPC focuses on actual clicks – so you’re only paying when someone shows interest. 

Sometimes Amazon PPC campaigns to be referred to as sponsored products, sponsored brands or sponsored display. The difference in names is that they have different targeting options. 

Setting up a good campaign can be challenging, and keeping track of their performance is even harder. However, there are many Amazon PPC software tools that can help you keep track of your ad spend. 

How Does Amazon PPC Work?

It all starts with keywords. You bid on specific search terms, let’s use the term ‘reusable water bottle’, and Amazon shows your ad when a shopper searches for that terms. If the shopper clicks, you pay the amount of your bid (or less, depending on competition).

From there, it’s all about the results. Clicks, impressions, conversions, and sales are tracked and measured in your Amazon ads metrics. But not all metrics are equal – and obsessing over the wrong ones is a common (and expensive) mistake. 

Our post on Are You Tracking The Right Amazon PPC Metrics? dives deeper into which metrics to focus on.

Why Should You Use Amazon PPC?

Calling the Amazon marketplace “massive” is putting it lightly – currently, there are 9.7 million sellers on Amazon worldwide. With millions of sellers competing for attention, Amazon PPC isn’t just helpful — it’s essential if you want to stay ahead. Here’s why:

  • Product visibility: New products get buried in organic search. PPC gives them a fighting chance.

  • Sales velocity: More sales = better rankings.

  • Data feedback: You learn what keywords actually convert, not just what people click on.

The catch? You can blow through your budget if you’re not careful. Amazon PPC isn’t set-and-forget. It needs regular tracking, testing, and optimisation.

Need help figuring out why your ad spend isn’t converting? Read Why Your Amazon PPC Ads Have High Clicks But Low Sales.

What's a Healthy PPC Stratergy?

Start simple:

  • Choose a few relevant keywords

  • Run an automatic campaign to gather data

  • Switch to manual targeting based on performance

  • Keep a close eye on ACOS (Advertising Cost of Sale) and TACoS (Total Advertising Cost of Sale)

Once your campaigns are running, it’s all about refinement. Use automatic campaigns as a testing ground — see what Amazon suggests, what gets clicks, and more importantly, what converts. Then use that data to build more focused manual campaigns.

Keep monitoring your performance with the right Amazon PPC metrics. If you see your TACoS creeping up but your overall revenue isn’t, that’s a sign something’s off — maybe you’re overspending on non-converting keywords, or your prices aren’t competitive enough.

In that case, it’s worth reading Is Your TACoS Too High? Here’s How to Lower It Without Killing Sales.

Using PPC Software to Make Life Easier

Managing Amazon ads manually is doable, but it takes time. That’s where PPC software comes in — helping you track performance, spot trends, and stay on top of your campaigns without constantly logging into Seller Central.

And while most PPC tools focus on metrics like bids, impressions, and clicks, Seller Margins takes it a step further. We track the full impact of your PPC spend across every SKU, order, and sale.

By pulling in your ad costs alongside Amazon fees, shipping charges, and product costs, we show you exactly how your PPC is affecting your margins — not just your clicks. 

Amazon PPC is one of the most powerful tools at your disposal – if you use it wisely. It’s not just about clicks; it’s about knowing your Amazon PPC metrics, adjusting based on results, and using tools that help you spend smart.

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