Amazon ads getting pricey? You’re not alone.
Every seller I talk to lately is saying the same thing: “Andy, my Amazon CPCs are through the roof. What gives?” 😩
If that’s you, I’ve got good news and bad news. The bad news? You’re right. The good ol’ days of cheap clicks are behind us. The good news? There’s a new way forward—and it involves thinking smarter, not spending harder.
Let me break it all down with a story from the trenches.
📖 The Seller Who Hit a Wall (and Climbed Over It)
Meet Lisa. Lisa sells fitness gear on Amazon. For the last two years, her Sponsored Product ads were cruising. She’d pop in her budget, optimize her bids, and watch the sales flow in.
But then… BOOM. Her CPCs spiked. Her ROAS dropped like a kettlebell. 💸
She was doing everything “right,” yet she was losing money on every sale.
That’s when she called me.
I walked her through the same steps I’m about to show you—and within 60 days, not only was she profitable again, but she was also scaling beyond Amazon.
🧠 Step-by-Step: How to Beat Rising Amazon CPCs
✅ Step 1: Stop Worshipping ROAS
I get it. ROAS is sexy. It’s easy to brag about. But here’s the deal:
ROAS is a vanity metric. TACoS is the sanity check. 🧠
Focus on Total Advertising Cost of Sales (TACoS). It tells you how your ad spend stacks up to total revenue, not just what comes through the ad click.
Lisa was chasing a 4X ROAS and still losing money. Once she switched to monitoring TACoS, she realized her ad strategy was leaking profit.
✅ Step 2: Optimize Listings Like a Pro
If your conversion rate is weak, high CPCs will eat you alive. Listings matter more than ever.
Quick checklist:
- 🔍 Use keyword-rich titles (think: “Amazon SEO tips”)
- 🖼️ Add high-quality photos & videos
- 💡 Include clear, benefit-driven bullets
- 🧾 Build out A+ Content
- 🏷️ Price competitively with coupons & deals
More clicks that convert = lower effective CPC. Simple math.
✅ Step 3: Play With Amazon’s New Toys 🎯
Amazon’s ad game has expanded:
- Sponsored Display: Perfect for retargeting
- Video Ads: Eye-catching and underutilized
- DSP: Great for off-Amazon brand building
Lisa saw big wins with Sponsored Display. Retargeting warm traffic is cheaper and more profitable than trying to win cold clicks.
🌐 Why You Gotta Go Multi-Channel (or Risk Sinking)
If you’re only selling on Amazon, you’re playing a one-legged game. Here’s the truth:
Amazon’s rising CPCs are not a trend—they’re the new normal.
Time to spread your wings. Here’s how:
🚀 Google Shopping & Performance Max
If Lisa had a dollar for every sale she made from Performance Max after we optimized her Merchant Center feed, she wouldn’t need to sell kettlebells.
Hot tip:
- 🛒 Use keyword-rich titles
- 🖼️ Optimize product images
- 🧩 Implement custom labels to segment your campaign
Performance Max puts your products across YouTube, Search, Gmail, and Display. And it WORKS.
📱 Facebook & Instagram Retargeting
Now that Lisa had a Shopify site, we built a warm retargeting funnel.
- 🎯 Facebook Ads brought back visitors who didn’t buy
- 💬 Instagram stories nudged them with promo codes
Best part? Lower cost per conversion than Amazon PPC.
📧 Build That Email & SMS List
Your email list is like a savings account. Every new contact = future revenue.
We set Lisa up with automated sequences:
- 📬 Welcome series
- 🛒 Abandoned cart recovery
- 💥 Product launch blasts
No CPC. Just profits. 💪
🧠 The Big Lesson?
Amazon is a powerful channel—but it shouldn’t be your only channel.
Rising CPCs aren’t a glitch—they’re the new reality. But with the right strategy, you can adapt, thrive, and grow beyond the jungle. 🌴
Remember:
- Profit > ROAS
- Optimize your listing before your ad spend
- Go multi-channel to stay in control
Frequently Asked Questions:
Q1: What’s the best way to start an Amazon FBA business today?
A: Start with solid product research, focus on high-demand, low-competition items. Use keyword tools and validate with Amazon product research tools.
Q2: How do I improve my Amazon PPC campaigns?
A: Use negative keywords, optimize your product pages, and analyze your TACoS weekly.
Q3: What are Amazon backend keywords?
A: Hidden search terms that help boost your visibility without crowding your title or bullets.
Q4: Is Amazon private label still profitable?
A: Absolutely—if you know your margins and leverage multi-channel selling.
Q5: What’s better, Amazon Sponsored Products or Sponsored Brands?
A: Sponsored Products convert better early on. Sponsored Brands are great for building trust once you’re scaling.
Q6: How do I use Amazon A+ Content for better conversions?
A: Tell a story. Use visuals. Highlight benefits. Address objections. Focus on “what’s in it for me?”
Q7: How do I lower my Amazon advertising costs?
A: Optimize listings, retarget with Sponsored Display, and build your own audience off Amazon.
Need Help with Amazon Ads? If you’re looking to maximize your Amazon ad returns, sometimes you need an expert who’s been there, done that. I’m Andy Splichal, author of Make Each Click Count and host of the Make Each Click Count podcast. Amazon’s PPC landscape can be overwhelming, but with the right guidance, you can make every dollar count, I’m here to help. Let’s make those clicks count!
ABOUT THE AUTHOR
Andy Splichal is the founder and managing partner of True Online Presence, author of the Make Each Click Count book series, host of the Make Each Click Count podcast, founder of Make Each Click Count University and certified online marketing strategist with twenty plus years of experience helping companies increase their online presence and profitable revenues.
He was named to Best of Los Angeles Awards’ Most Fascinating 100 List in both 2020 and 2021. To find more information on Andy Splichal, visit trueonlinepresence.com or read The Full Story on his website or his blog, blog.trueonlinepresence.com.