The Unfair Advantage of Best-selling Products on Amazon

The Unfair Advantage of Best-selling Products on Amazon

Sellers, vendors, and brands still rely a lot on Amazon's advertising capabilities to target customers during the highly competitive period. However, they started to carefully evaluate their marketing budgets due to the challenging macro environment. It’s especially true for emerging or new products sellers, facing a more crucial situation.

amazon advertising revenues
Source from: JungleScout Amazon-Advertising-Report-202

Challenges faced by Smaller Sellers

Best-sellers holding the upper hand

Have you noticed how certain products in a certain category seem to dominate the market, leaving little room for new and innovative products to compete? This is due to the phenomenon of best-sellers having an unfair advantage in sales and reviews.

Competition from big brands is fierce, they invest heavily, which increases the competition and Cost Per Click. They have bigger budgets than sellers doing small business.

Data have shown that best-selling products often receive a higher number of positive reviews on a weekly basis, making it even more challenging for new products to break into the market. This creates a vicious cycle where these products continue to be popular and dominate, leaving little room for new products to grow and succeed. This is not just a problem for the new and emerging products but also for the consumers, who are not exposed to a wide range of options and innovations.

Below is a best-seller product acquiring more than 150 reviews per week !

reviews on amazon
Photo taken from the m19 platform, Amazon PPC software

So how to beat competition and sell more on Amazon?


Don’t focus only on lowering the ACOS

So how do you cope for Amazon’s bias and your lack of visibility?

You need to take into account your Product Maturity.

In the launch phase, due to the lack of brand awareness, conversion rate is more important. This means you need to allocate a higher advertising budget to generate sufficient impressions and visibility. After the product is launched, you should start eliminating low-conversion-rate keywords to optimize the campaign.

Also for competition Intensity, Amazon advertising is based on a second price auction system, and the level of competition directly impacts the advertising costs. When more sellers participate in bidding, the CPC tends to increase. Achieving a lower ACOS can be challenging if you have many Amazon competitors.

Combine Both Amazon SEO And PPC

Amazon’s pay-per-click (PPC) advertising options remain the most popular marketing tactic. If you don’t invest more on your PPC and do PPC management, it will be hard to maintain your organic ranking.

Here is the Ad types which Amazon sellers use to advertise their products.

different amazon ads that people like to use
Source from: JungleScout The-State-of-the-Amazon-Seller-2023

The combined use of Amazon SEO and Amazon PPC can have a substantial positive impact on rankings and sales. While Google has indicated that advertising on keywords does not impact organic rankings, the situation is different on Amazon. The organic ranking of a product is directly influenced by its sales. Therefore, generating more sales through PPC advertising can enhance the organic ranking of the product.

This impact is particularly important when it comes to new listings. New products often lack sales history and performance data, which can negatively affect their organic rankings. This can be changed by using Amazon PPC, which increases the traffic to the product listings, so as to boost sales.

Prepare to fight in PPC games

Normally there are two main targeting options available for Amazon PPC campaigns:

1. Manual promotion:

Amazon Sellers usually manually select the keywords they want to bid on and the specific products they want to promote. Amazon will display ads only when a shopper's search query matches any of the keywords in the campaign.

2. Automatic promotion with m19 PPC software:

Advertisers choose the products they want to advertise and set a budget for their campaigns in their Amazon PPC automation tool. They provide an ASIN (Amazon Standard Identification Number), the ACoS they want to achieve, and a CPC bid. m19’s AI for Amazon advertising then utilizes the data associated with the ASIN to identify relevant keywords that will bring more visibility.

amazon advertising report
Source from: JungleScout Amazon-Advertising-Report-2023

Large corporations have a significant advantage to hire employees for various tasks, such as website improvement and manual Amazon PPC campaign management. While it is hard for small business sellers to do such things. However some PPC management software now serve as a means by offering affordable, efficient platforms that simplify complex tasks and reduce additional budgets.

With the changing of consumption trend nowadays, the AI solution is most suitable because it enables sellers to cope for their lack of budget and employees. A PPC automation tool can explore a vast number of search terms and product page listings so as to identify suitable products for promotion.

By utilizing m19’s keyword tracker, you can ensure that your keyword strategies in organic and sponsored running continuous effectively by our automation tools. Sign up for your free trial here.

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Xuan Xie
April 16, 2024
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