How Can Monitoring Sales Velocity Help Me Create Better Amazon PPC Campaigns?

February 16, 2024 Performance dashboard of the Amazon PPC campaigns.

As an Amazon seller, you operate in one of the most competitive e-commerce marketplaces on the planet.

When you find yourself in such a cutthroat environment, you have no choice but to find ways to maximize your sales and profitability to build a sustainable business. 

To achieve success on Amazon, you must closely monitor your sales velocity and understand your positioning within your category.

This equips you with the insight you need to make informed decisions about your Amazon Pay-Per-Click (PPC) advertising strategy.

This blog post will explore the importance of monitoring sales velocity to Amazon sellers, understanding their category positioning, and how these insights tie directly to optimizing their Amazon PPC campaigns.

What Is Sales Velocity on Amazon Advertising?

On Amazon Advertising, sales velocity refers to the speed at which your products or services are sold in a given period.

By tracking the rate of sales, typically measured in units or revenue over a specific time frame, you can identify trends, measure the impact of your marketing efforts, and make informed decisions to optimize your sales strategy.

How Do I Maximize ROI In Amazon Advertising?

Monitoring sales velocity helps you gauge the demand for your products within your category. By identifying your best-selling products and understanding their rate, you can effectively approximate your future sales and make informed decisions about allocating your PPC budget. 

Focusing your Amazon PPC efforts on high-sales velocity products ensures maximum return on investment (ROI) by getting more eyeballs on the products already doing well in the marketplace.

Identify your top-performing products. Analyse which ones sell well and which ones contribute significantly to your revenue. Allow this information to guide your inventory management and product development decisions. 

Forecasting sales and managing inventory are possible by monitoring sales velocity.

Having a backlog of data of what’s worked in the past, and when, helps you predict and plan your inventory accordingly. This prevents stockouts or excess stock, ensuring optimal supply levels to meet customer demands.

When you align your PPC strategy with your sales velocity, you can optimize your PPC ad spend for maximum ROI and increased sales.

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Why Should I Target High-Performing Keywords In Amazon PPC?

SEO is a significant sales driver on Amazon. Your product will sell more units if your SEO game is on point.

With that in mind, sales velocity can come in handy when diagnosing the effectiveness of your SEO optimization on Amazon. 

Monitoring sales velocity on Amazon allows you to evaluate your marketing effectiveness.

Your sales velocity insights provide data for keyword optimization not only in SEO optimization but also in your Amazon PPC campaigns

Look at your before and after marketing campaigns to gauge their impact on driving sales, then adjust your marketing strategy accordingly.

Keyword strategy for Amazon Advertising.

What are the high-converting search terms associated with your top-performing products?

Identify those high-converting keywords and then target these keywords in your Amazon campaigns.

This increases the visibility of your products and drives traffic from shoppers actively searching for your product. 

Look to Amazon’s Search Query Performance Dashboard for the best performance analytics.

Understanding the relationship between your Amazon PPC keywords and sales velocity data can help you enhance your ad relevance and attract more qualified customers.

How Do I Select An Effective Amazon PPC Bidding Strategy?

A product’s performance plays a role in determining the bidding strategy you’ll use in your Amazon PPC campaigns.

If your bidding strategy doesn’t align with your product performance, your PPC campaigns won’t be firing from all cylinders, and your ROI will be affected. 

Monitor your product’s sales velocity and observe the competitors’ performance. These insights will guide you on the right bidding strategy for your campaign.

This is how you identify market trends and notice shifts in demand.  

Search Query Performance Dashboard

If your product is dominating its category with high sales velocity, consider setting more aggressive bids to guard your top position and keep the sales rolling in.

On the other hand, if your sales velocity is lower than your competition, lowering your bids and focusing on long-tail keywords or less competitive areas within the category can help you gain traction without burning through your ad budget. 

Your sales velocity and category positioning are instrumental in helping you optimize your bidding for maximum visibility and sales without burning a hole in your pocket.

What Is Amazon PPC Ad Optimization Based on Product Performance?

Product performance insights are a source of valuable information that come in handy when optimizing your Amazon PPC campaigns.

You can analyze your best-performing products to find the aspects that contribute to the product’s sales velocity.

Then, you can use your findings to tailor your ad copy and imagery to highlight these top-selling items. 

Emphasizing a product’s unique selling points and customer benefits in your PPC ads helps capture the attention of potential buyers.

This drives higher click-through rates and, ultimately, boosts conversions. Your product’s performance data helps replicate a product’s success across PPC campaigns, increasing the likelihood of conversions and sales.

How Do I Identifying Growth Opportunities In Amazon PPC?

Identifying growth opportunities in your Amazon PPC campaigns is crucial to scaling your ads and accelerating conversions.

Sales velocity data is a guiding beacon highlighting gaps in your Amazon PPC that you can turn into growth opportunities.

Analyzing sales velocity data allows you to identify products with untapped potential or emerging trends with a lot of growth potential.

You can then channel a more significant chunk of your ad budget to PPC campaigns for these products to help you gain a competitive advantage and increase your market share within the category. 

Always be optimizing gif

When you stay proactive with your sales velocity analysis and incorporate the data into your strategy, you unlock new revenue streams and expand your business on Amazon.

That’s how you continually scale your PPC campaigns to avoid plateauing and losing market share to your competitors.

Wrapping Up: Monitor Your Sales Velocity!

Monitoring Amazon sales velocity and understanding your positioning within your category is vital for the success of your Amazon PPC campaigns. When your sales velocity insight and Amazon PPC strategy are aligned, you can fully utilize your advertising budget by targeting high-performing keywords, adjusting your bidding strategies, and fine-tuning your ad content so your campaigns are firing from all cylinders and bringing conversions.

Amazon advertising is about achieving sustainable growth for your Amazon business, and your sales velocity insight may be the missing piece you need to create high-performing ad campaigns. 

If you’re not tracking your sales velocity, start now. It could be the nudge your Amazon PPC campaigns need to perform even better.

This is a guest post from Ad Badger.

Ad Badger helps Amazon Sellers increase their profits and scale their businesses. Ad Badger runs the world’s longest-running Amazon PPC-focused podcast, The PPC Den Podcast, and grows awesome brands with their #1 Amazon PPC Optimization App.

Bernard Gatheru

Bernard Gatheru

Bernard Gatheru is a Contributing Writer at Ad Badger.

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