What determines Amazon marketing pricing?
A lot of different factors determine Amazon marketing pricing, including these five:
The services that make up your Amazon marketing strategy impact your costs the most. For example, if you decide to run only a pay-per-click (PPC) advertising campaign, versus investing in PPC and search engine optimization (SEO), you can expect lower costs.
Some of the most common services available for Amazon include:
Product optimization ($99 to $2000 per product, $450 to $1800 per month)
Whether you call it product optimization or SEO, this marketing service is critical to your success on Amazon. By not optimizing your products for Amazon, your company loses valuable sales and online exposure. Instead of appearing on the first page of Amazon results, you show up on page two.
You don’t want that, not with 70 percent of shoppers sticking to the first page of Amazon search results.
That’s why many businesses make Amazon SEO a part of their marketing strategy. Your company has two choices when it comes to optimizing its products, however. You can improve a product’s SEO on a monthly or one-time basis.
On a monthly basis, Amazon SEO costs $450 to $1800 per month.
On a one-time basis, Amazon SEO costs $99 to $200 per product.
From an initial cost perspective, one-time product optimization is the lower-cost option. That’s until you look at the long-term value of ongoing SEO, which is why more businesses are transitioning from once-and-done optimization to continuous optimization.
Why is ongoing optimization — on a monthly basis — so valuable?
Like any search engine, Amazon experiences different search trends and user behavior, making adaption essential. Companies that adapt their products once, versus continually, lose valuable rankings in search results on Amazon.
With lower rankings comes lower traffic — and that leads to fewer sales.
Optimizing your products on a continual basis, however, allows your company to maintain and improve its product rankings in search results. With routine optimization, you can drive more shoppers to your product listings and earn more sales.
While your business may vary in its choice, Amazon SEO impacts your Amazon marketing pricing.
Copywriting ($25 to $2000 per product)
Sellers on Amazon can also invest in professional copywriting services for their product listings. This service can range from writing a complete product listing to drafting a new product description. In most cases, however, it focuses on product descriptions.
On average, professional copywriting costs $25 to $2000 per product.
A variety of factors can impact professional copywriting costs, including:
- Word count
- Writer experience
- SEO optimization
- And more
While a small business may skip on copywriting services, mid-size and enterprise businesses often invest in it. With this service, your company saves time, plus ensures all your products have user- and search-friendly content. That kind of content can drive search result rankings and sales.
Advertising ($100 to $50,000 per month)
Advertising is another influential pricing factor for Amazon marketing. With Amazon ads, which range from Sponsored Product Ads to Sponsored Brands to Display Product Ads, your company can reach shoppers fast — before they click on an organic, unpaid search result.
Companies often spend $100 to $50,000 per month on Amazon advertising services, which include:
- Ad spend: Ad spend refers to what you pay a company — in this case, Amazon — to advertise. For example, you may set an ad spend of $5000 per month. This amount covers everything related to the cost of your advertisements, like cost-per-click (CPC).
- Ad management: Ad management refers to what you pay the agency — WebFX, for instance — to manage your ad campaign. For example, as a part of our ad management services, our team develops and launches your strategy, plus modifies it over time to maximize performance.
As advertisements perform well on Amazon — Sponsored Products have the highest sales-per-click — many companies incorporate advertising campaigns into their Amazon marketing services. How much you spend on ad campaigns, however, depends on your business and specific strategy.
Review management ($300 to $750 per month)
For businesses on Amazon, review management is a critical part of day-to-day operations. It’s essential for your team to monitor not only the number of product reviews but also the quality of these reviews.
Amazon relies on reviews when it comes to ranking search results. Without a high number of high-quality reviews, it’s difficult to rank in search results for competitive keywords. It’s also a challenge to convince shoppers that your product is worth buying.
With review management, your company maximizes the power of product reviews. Plus, you eliminate the time- and resource-intensive process of encouraging, monitoring, responding, and tracking reviews. That allows you to focus on tasks specific to your role.
Prices for review management range from $300 to $750 permonth.
This rate may increase, depending on your product catalog. For example, if your company sells more than 100 products, an agency’s quote may exceed $750 per month due to the time needed to manage that many products.
Product photography ($20 to $1500 per product)
Like reviews, Amazon — and users — also reference product images. While Amazon uses product images as a ranking factor for search results, users check product photos to see what your product looks like, how your product works, and how they can use your product.
On average, professional product photography costs $20 to $1500 per product.
In almost all cases, product photography includes a set number of images — like eight, for example. Most photos feature your image on a white backdrop, but some photography packages offer additional features, like pictures of your products in-use by models.
If you’re unsure which photography package meets your company’s unique needs, chat with your agency about your target audience. They can do additional research into your target market and provide insight into what your shoppers would like to see when browsing your product.
Every business varies when it comes to their marketing and advertising strategy for Amazon.
That’s why your company may not invest in all these services. Instead, you’ll pick the ones that offer the most value to your team and business, which will have a direct impact on your Amazon marketing pricing.
No matter the market, companies often stand apart from one another with their strategies. While some adopt an aggressive approach to advertising and marketing, others take a casual stance. Either way, your approach impacts your Amazon marketing costs.
If your company opts for an aggressive strategy, expect higher costs. In most cases, an aggressive approach includes a larger ad spend, as well as investments in product optimization, copywriting, and photography.
Due to its aggressiveness, this strategy tends to deliver a tremendous ROI.
In comparison, a business that prefers a non-aggressive strategy maintains lower marketing costs. For example, you may have a smaller ad spend than a company with an aggressive plan. Even though you’re paying less, your business can expect an ROI.
Why do some companies opt for an aggressive plan? A few reasons:
- A competitive market
- A new product launch
- A performance-driven business goal
- An influx of product interest
- And more
For the best results, your business should discuss with your dedicated account manager your goals for marketing on Amazon. Based on your goals, as well as market research, your account manager can provide a recommendation when it comes to building your strategy.
The aggressiveness of a strategy can increase Amazon marketing costs by thousands of dollars.
3. Product catalog
A company’s catalog size can also influence your marketing pricing.
If your business offers more than 100 products, for example, you will likely have higher marketing and advertising costs than a seller with only 25 products. A few factors, like industry competitiveness, can decrease this price difference.
In most cases, however, more products demand a more substantial marketing investment.
This price difference can decrease over time. For example, if your business starts its advertising and marketing strategy by investing in product optimization, copywriting, and photography, then you will have high initial costs.
Those are occasional expenses, however.
Your company may continue to invest in product optimization but retire product photography after receiving updated images for all your products. While this scenario introduces a high up-front cost, it can help your business gain a competitive edge in the marketplace, resulting in more sales.
For the best recommendations on optimizing your product catalog, chat with your account manager.
4. Agency experience
When it comes to Amazon marketing pricing, many businesses overlook the experience of their agency. If you partner with an agency that offers decades of experience in digital marketing and advertising, they will likely maintain higher prices than inexperienced agencies.
For many companies, an experienced agency — and their additional fee — offers peace of mind.
With a trusted and experienced agency, your business doesn’t have to worry about receiving service. You know that the agency, based on their history, testimonials, and portfolio, will deliver when it comes to developing, launching, and managing your advertising and marketing strategy.
Even though experience only increases marketing costs by a few hundred dollars, many companies feel the pull of agencies that offer “cheap” services for Amazon. While compelling, these agencies rarely provide what companies want — high-performing campaigns.
Save your business money, and partner with an established and experienced agency.
If your business leaders prefer “cheap” services, it’s imperative for your team to explain the risks of these agencies. You want to maximize your company’s budget, not minimize it by choosing a low-cost agency, becoming dissatisfied, and then partnering with a results-driven agency.
That doesn’t save your company money — it costs money.
5. Agency technology
In digital marketing and advertising, technology is critical. Due to its tremendous role, an agency’s tech can have a significant impact on pricing. It can also have an enormous influence on the success of your campaigns, such as by leveraging machine learning, artificial intelligence (AI), and proprietary data.
How much impact can technology have on Amazon marketing pricing?
An agency can increase their prices by thousands of dollars to account for their tech. If your agency uses third-party software, for example, they must often raise their rates by a significant amount each year because their software provider increases its prices annually.
In comparison, an agency that develops their marketing and advertising technology in-house has maximum control over their costs. WebFX, for example, developed MarketingCloudFX in-house and launched AmazonFX via Google Data Studio to minimize our clients’ costs.
For the best results from your marketing and advertising strategy, it’s critical to partner with an agency that offers the most valuable tech. Today, it’s essential for agencies to provide software that features machine learning and AI, which can deliver actionable insight into your campaign.
MarketingCloudFX is an example of marketing tech that uses both, plus decades of proprietary data.
From a cost perspective, agency technology often offers a significant advantage that increases your ROI. Your company can boost your ROI, however, by focusing on agencies with in-house tech, rather than third-party tech.
Additional costs of marketing on Amazon
As a business on Amazon, there are a few other costs to consider, including:
Professional seller account
A professional seller account is essential for companies on Amazon. While it removes the per-item fee, it does require a monthly subscription of $39.99. In addition to paying the subscription fee, your company also pays referral and closing fees, which vary.
Fulfillment By Amazon
Companies established on Amazon also invest in Fulfillment by Amazon (FBA). This service, operated by Amazon, handles the packaging, shipment, and return of your products. It also provides your products with a top grade for shipping and fulfillment, which can influence your ranking in search results.
Fees for FBA depend on the size of your product, as well as the storage duration.
Is marketing on Amazon worth the cost?
With a monthly cost of $9000 to $60,000, it’s natural to wonder if marketing and advertising on Amazon is worth the price. Whether you’re a small business or established enterprise, Amazon offers immense opportunity — which is why marketing on the platform is essential.
Four of the most compelling reasons to market on Amazon include:
1. Increase your ranking in relevant search results
With its search algorithm, Amazon makes it easy for shoppers to find what they want. That’s why 70 percent of users stay on the first page of Amazon search results. If you're going to grow your business, you need to rank first — and invest in Amazon marketing services.
2. Decrease your Advertising Cost of Sale (ACoS)
When you advertise on any platform, from Google to Amazon, it’s imperative for your team to minimize your advertising costs. With an experienced agency on your side, your company can decrease your ACoS, maximizing your profits and achieving your desired growth.
3. Improve your brand awareness
On Amazon, it’s critical for your company to stand apart from the crowd. You want users to know and trust your name. With ongoing product optimization, as well as advertising, you can reach your target audience, exposing them to your brand and persuading them to invest in it.
4. Accelerate your revenue
Like any business on Amazon, you want to increase your profits, grow your company, and become your target market’s go-to choice. With a continued investment in marketing and advertising, plus a competitive strategy, you can achieve your revenue goals and then some.
For many businesses, from well-known brands to little-known companies, marketing on Amazon has provided an immense increase in sales and brand awareness. That’s why Amazon is a platform worth the investment.