Many sellers will consider one issue when entering Amazon, that is, cost. Small and medium-sized sellers are generally more sensitive to cost control, so when selecting products, they will choose products with lower average order value.

So are products with lower average order value really easier to sell? Actually, not really. A low average order value also means a smaller profit margin.

If the ACoS is still high, the profit will be further squeezed. How can we get the highest return with the lowest advertising investment? Today, I will share with you 4 tips on how to use low-unit-price advertising!

The core of Amazon's low-priced products

Price Sensitivity

Consumers who purchase low-priced products focus primarily on price, so advertising strategies for high-priced products may not be applicable to low-priced products.

If you are pursuing profits, the profit margin of low-priced products is usually very small, maybe only 3-5 US dollars. Even if you make all of it, it is not meaningful, and sales are unstable.

Therefore, low-priced products need to adopt low-price spiral and low-advertising strategies to drive sales. As for how to achieve low prices and low advertising to drive sales and subsequent profits, corresponding strategies need to be adopted, not just price increases.

Pricing strategy for low-priced products

① Avoid setting prices much lower than your competitors, otherwise it will easily trigger a "price war".

For example, if the average price of similar products is $16.99 - $19.99, then we could price it at $15.99 or $16.95.

② Sellers should stick to their own position when setting prices. Do not blindly pursue the lowest price in the market at the expense of profits. The price should be between the lowest and highest prices, and focus on creating and optimizing product listings.

③ Low-priced products still need to have value. Show buyers how our products are more valuable than similar products. We can do this by putting a logo on the product, considering other functional advantages the product can provide to customers, material differences, checking reviews of competitor products to understand what they are missing, and improving our products.

④ On Amazon US, non-Prime members need to pay $5-10 for shipping if the order value is less than $25, which may cause buyers to give up the purchase. Therefore, if the seller's product price is slightly higher than the $25 free shipping threshold, the conversion rate of the product among non-Prime member buyers may be higher. (For example, if your original price is 23.99 or 24.99, you can slightly raise the price to 25, try to meet the free shipping threshold, and sales may increase a little)

Bidding strategies for low-priced products

Option 1: $15 per day budget, use automatic advertising

This solution is suitable for the early promotion of most low-priced products. If it is a standard product, it is recommended to use close matching and adopt suggested bidding.

Bidding strategy: Fixed bidding, which can ensure that most of the exposure is obtained without losing control of ACOS.

Plan 2: With a daily budget of $15-50, use automatic advertising + manual precision*3, with a budget allocation ratio of 6:4

If you have enough budget, it is recommended to increase the delivery of precise words. Precise words can be highly relevant and high-traffic words in the category. Use up to 3 precise words and use the suggested bid * 1.2 as the bid. For new products, you hope to get more exposure, so you need a bid that is slightly higher than the suggested bid.

Plan 3: With a daily budget of more than 50 USD, use automatic advertising + manual precision*3 + SBV*1, and the budget allocation ratio of the three is 2:4:4

In addition to automatic advertising and precise keyword delivery, if the budget is sufficient, it is also recommended that sellers use SBV to achieve better exposure and conversion effects. Currently, SBV is one of the ads with better click-through conversion effects. You can choose the same keywords as manual precise keywords as SBV delivery keywords, and also use the recommended bid * 1.2.

The three solutions are different:

Solution 1 is more conservative. It starts with automatic advertising and then switches to manual precision advertising.

Solution 2 is in a balanced state, with automatic advertising and manual large-word precision cooperating with each other, and the ranking is rising faster;

Plan 3 is more radical, focusing on big-word traffic and using SBV to increase exposure and conversion rate.

Advertising strategies for low-priced products

1. Low-cost automatic keyword matching: For limited budgets, for categories with rich supporting products, you can adopt a low-cost automatic close keyword matching and inclusion strategy. On the premise of ensuring the required number of clicks, choose a lower CPC as much as possible. For situations with a large number of general keywords, you can turn off automatic close matching first and turn on automatic broad matching instead.

2. Core keywords: At the same time, we recommend that you conduct broad matching with half of the CPC of the suggested bid, and then conduct precise testing. By conducting broad matching first, you can conduct preliminary testing and optimization.

3. Precise long-tail keywords: Categorize precise long-tail keywords into multiple echelons, each containing five keywords, and then conduct manual broad matching and manual precise matching in batches. These keywords can be used to improve rankings, and manual precise advertising helps increase precise traffic sources.

4. Video ads: For keywords with high order volume, place video ads separately and enable three matching methods at the same time. For keywords with low order volume, place video ads in batches. For root words, enable broad matching and precise matching; for non-root words, only enable broad matching.