What percentage of sponsored ad sales are "stealing" an organic sale?

Considering that Amazon puts the sponsored ads on top of your organic listings when it’s searched for, a lot of customers who already decided to buy your product will click on that instead of the organic listing. It probably makes those advertising metrics look a lot better than they actually are for established products/brands since most of the advertising sales are probably just hijacking the organic sales.

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This has ALWAYS bothered me…

What bothers me more is what percentage of repeat buys are charged a click because the buyer doesn’t know how to reorder something from their account and simply searches again.

I’d peg at least 25% on the steal of organic and 20% on reorders if I had to guess.

We tried really hard to stay away from PPC but it’s a necessary evil if you really want to be successful, especially in a super-saturated commodity category like the one we sell in.

The good news is we use it to build our base while knowing at a minimum, 50% of those that shop with us will be back for more. How they find us that second, third, or 50th time is the concern when it comes to flushing unnecessary $ down the tubes.

The right thing for Amazon to do in that situation would not charge the click because the buyers intent is clear but we all know that’s not going to happen… :laughing:

Ethics + Amazon = LMFAO.

Amazon once had ethics when they wouldn’t charge the full FBA fee for multi-unit orders because neither the labor or freight charge varied but that went out the window before we even started there.

We sell lots of multiples. I think I would have lost my mind if we had and then lost that benefit. That must have been really painful for some sellers.

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Ah, I remember the multi unit order fees, I think it was substantially cheaper too for the 2nd+ units.

They got rid of that to hike the fees without hiking the fees, then they started really hiking the fees… by a lot every year.

But yeah, charging clicks is always somewhat of a contentious thing. You also spend money when competitors click your ads. I know one thing that I do for various reasons is I also click any interesting looking sponsored ads to check out the listings. It’s not for malicious reasons, but they still get charged for it. And of course, there’s straight up click fraud that people do to cost their competitors money.

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I get what you’re saying, but I don’t really consider it stealing. If we didn’t advertise, our product might not show up and they’d buy from someone else.

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The sales you lose when there are sponsored ads vary with your search placement.

It is not clear that if you are “worthy” of high placement, you will lose any. Nor is it obvious that if you have poor placement, you will lose any.

Some buyers are more distracted by the ads on the search than others.

If the buyer has clicked through to your page, the sale is yours to lose, and if you can’t close the sale, the ads have their best effect.

It also depends on what your product is, and who buys it, as well as why the buyer chose to click though to your product.

Sponsored ads are a lifeline to products with poor search placement, though increasingly expensive, but they could be a waste of money if the well-placed products are sold by sellers who are skilled professionals.

I see lots of pages where the sellers shoot themselves in the foot, by burying the best reasons to buy in a sea of worthless words, pictures and videos.

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Maybe on Organic, not on reorders IMO in our category. People tend to stick with what they like when it goes in their body and works for them.

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