Hi, this is Daniel here, and I'm so happy that you're here because in this free three part course, we're going to talk about PPC in a way that you've never seen before. We're going to actually talk about the things that truly drive and impact performance and results and Amazon PPC. We're going to go super high level. I'm going to show you how to actually get great results with Amazon PPC. So you've probably seen a lot of videos by now talking about the same kind of things like how to create campaigns that get like a super low cost and things like that. But that's not actually the thing that really drives results. You may have already done that at least on some products and it doesn't work. It doesn't get good results. So why is that? You know, what's the actual reason why Amazon PPC either works really well and helps you scale really far
with some products, but then it doesn't with others. Now these are things that nobody's talking about. These are the actual things that matter the most when it comes to getting results with Amazon PPC and ultimately on Amazon, in general, with private label products. So you're in for a treat and I'm happy that you're here because this information can save you a ton of money and a ton of time. So you're doing yourself a huge favor by going through this training. Now, before we dive in on the content, pause the video, take a moment and subscribe to my channel because that's how you're going to get notified about part two and three of this course. So after you've done that, let's proceed and let's hop on over to my computer here and dive in on the course.
All right. So let's start by talking about the most common issue with Amazon PPC. So if you're watching this video, you probably have at least some products that just don't do well with Amazon PPC. You've probably watched a bunch of videos here on YouTube with tips and tricks and things to set up campaigns that have like super low aid costs and things like that. And you've tried a bunch of different things, but it just doesn't work no matter what you do, the product or these products just don't do well with PPC on Amazon, the equals is super high, like 50, 60%. And just aren't able to make PPC work profitably on Amazon with the product or these products. And most people think the issue there is the PPC thus, while you're watching this video. But in reality, the real issue, if that is the case is not PPC. The problem has nothing to do with actual PPC. Instead, the issue is the offer and the product that you're selling in its current state.
And the reality is that you're never going to fix a bad offer or a bad product with PPC or any kind of marketing. But usually when like PPC isn't working on Amazon, what sellers do is they then go and try a bunch of other marketing, like many chat, Facebook ads, funnels, et cetera. But none of these things are actually going to solve the issue, which is the offer. You know, this goes with it. Any business, any product people must want to buy your product. The product must convert. And if you're selling like the same product, like 50 other sellers on Amazon, you have no differentiation. You have nothing that makes a person actually want to buy your product over another product. You are not going to fix it with PPC. You're not going to fix it as manager. And these things are just not going to work.
Now, these things are all going to be in way. The only way when these things are not working, even with just very simple, like campaigns and things is to go and fix your offer because if the offer is good, it should, and it will absolutely work with very simple PPC to begin with. That's all it should take. And if that isn't working, you know, the root cause is not because the PPC isn't good enough. PPC is very, very simple. Of course, it's a big difference between PPC well and not, but PPC, you know, setting up a few ads on Amazon is so simple. Like you can't really mess that up. So if that isn't working at all, then the root causes, the real reason why it's not because you don't know how to do PPC better. It's the offer. So this is absolutely vital to understand, because if not, you might end up spending a lot of time, lot of effort, a lot of money, a lot of energy trying to do more marketing and more marketing. But the more doing more marketing is not the solution here. Because again, if you have a great offer, a great product that meets certain conditions, we're going to talk about in this video, then PPC will work quite easily. At least you will see some positive signs and then through better PPC, we can also do better. We can scale, but the root cause of PPC performance, the main thing that actually drives PPC and other marketing performance is the offer. It's the product, not the other way around.
So how do we make sure we have a good offer for Amazon PPC? And how do we fix this problem here by actually improving the offer? Well, there's three main issues that cause the offer not to work with Amazon PPC and the first issue, excuse my writing here. It's not the best is poor conversions. So when you have poor conversions on your product or your offer, it is very difficult to have good PPC. And this is all relative to your competition because you're not running PPC in a vacuum. You're running PPC in a competition. You know, it's, it's like you're competing with other products head on and the best one wins. The best one can do the most. You know, the, the best offer is going to be able to spend the most money on ads and make a profit. It's really that simple. So if your conversions suck, like if you're selling a me-too product in a very saturated market, your conversions are going to suck.
It is just a fact, you know, you're not going to sell the same thing like 50 other sellers and have no strategic advantage, nothing that makes you product stand out. You know, your margins are lower than some of the other competition, et cetera. You have fewer reviews, worse images like, you're not going to actually have good PPC. It's just a fact, the only way to have good PPC is to have good conversions relative to your competition. And usually the solution is not just to like improve your images, but we'll talk about that in a second, like how to actually improve your conversions, what really drives your conversion rate and how can you make your product convert better? Because you can, most of the time now the second real issue is having or dealing with a hard bid scenario. So what does this mean? So when you're selling on Amazon and you're running ads, doing PPC, you are in a bid scenario, meaning that with any given product, you have sort of numbers that you're working with. And those numbers are at the very fundamental level, the average cost per click divided by your gross margin. So here is when things get tricky. So let's say the average cost per quick is $2, right? And your gross margin on this product is $5.
You can probably see right away when I just put this here on the whiteboard, that this is going to be difficult, right? Because for every click you pay two bucks. And so to make a profit on this with just a $5 gross margin, your conversion rate here would literally have to be like insanely high. It would have to be like 50%, which might be possible at very low scale. But I promise you, it's not going to be the case at high scale. And I talk to people all the time, sellers that tell me that the conversion rate is like 60%, but I promise you if your conversion rate is like 60%, you're not running a lot of ads. You know that there's not a lot of sales volume because you're never going to have that kind of conversion rate. If you're really, if you're scaling your advertising, right?
So this is a very difficult bid scenario, and you're probably never going to be able to scale ads in this kind of situation without basically losing money. You can't do that, but you're not going to have profitable PPC directly on the front end now. So I'll talk about how to improve this, but this is on the, you have to consider even when you're selecting a product, because if you're going, if you're choosing to go into a heartbeat scenario, your PPC is going to suck. Your PPC is not going to be good. You're not going to have a low eight costs. It's just basically impossible. And there are some categories where the bid scenario is notoriously difficult. In most cases like health supplements, pet supplies, and beauty skincare type products, because there's so much competition. So you have to just bear that in mind, if you're in these sort of categories, you're probably gonna have to do something different to really make, uh, PPC work for you and something different when it comes to the offer.
So again, we'll talk about that in a sec. There's one more major issue, which makes Amazon PPC basically suck for a product. And that is just having a bat product. And I'm talking about the actual physical item. You know, these are, this is to do with the offer. This is just the actual situation in PPC on Amazon. And then this is the actual physical item. So if you have a bad product, PPC is not going to work well in the longterm. And what do I mean when I say a bad product? So now I'm not really talking again about the offer and how it converts. I'm talking about the physical items. So now, I mean basically like three things. And then the first one is your margin, right? So again, this is in relation to other products. So if you're selling the same product like someone else, and your margin is like five bucks, but their margin is like 10.
They can spend twice as much as you on PPC to break even or make money. Right? So that's what I would say, a bad product because you're, by default, not competitive with the product, this makes your bid scenario difficult because yours looks like this. In this example, all your competition would have, uh, or some of your competition would have like two here and 10 here, right? So they can actually make it work. But you just can't because you're proud of this bad. Your margins are bad. That's the first, first thing, the second thing is quality. So if you're selling a product with bad quality, or you have quality issues, you're going to have bad reviews. Your listing might get suspended. Amazon does not want your product even to win out in the bid scenario. So your cost per click ups would go up and things like that.
So this makes it very difficult, especially in the long run to be successful with PPC. When your product is just bad, quality and reviews come in, that are, you know, three stars, two stars, one stars, et cetera. It's gonna, it's going to be a real struggle in the long-term, especially with this. And then the third thing is inventory. So if you're not able to, they in stock on this product is you're always going out of stock. That's also going to make it really difficult to have good PPC, because you're not able to consistently build up and optimize your campaigns. You're not able to get the rankings you need on the back of it to really make it profitable because you have more organic sales then than paid sales, things like that. So if you're always running on inventory and your product just overall is, is, you know, bad quality wise and margins are not competitive.
That's, you know, you're, you're, uh, PPC is just going to be 10 times more difficult to make it work. So you're putting yourself in a situation where you're probably almost definitely going to fail. So you need to have strong margins compared to your competition. Quality needs to be excellent, and you need to be able to stay in stock of the product if that's the case, and you have a good bid scenario and your offer converts well, I can basically guarantee that your PPC is going to be good. Your PPC is going to work really, really well.
All right. So let's talk about what to do instead. So what to do, how do we fix this? So the first thing here with poor conversions is you basically have two choices to make sure you have high conversions. The first one is to select a product that is an a, a less competitive, less saturated market, where you can actually have one of the best offers easily, right? Just by doing certain things better than others. So to find a product like this, it's probably not going to be a high volume product. It's not going to be one of the more common, private label products, because you're going to have a lot of competition. It's not going to be easy to be one of the best offers. It's going to be difficult, right? You're going to have to do something different, but if you go outside the box outside of what everyone is telling you, you look at, let's say higher priced products, larger products, and things like that.
You can still find a lot of products on Amazon that have basically low competition and low saturation. And I especially mean low saturation when it comes to really good offers. You know, there's not a lot of really good offers, so you can basically sell. And th those cases you can basically sell the same product, but just do the offer the percent, the product better to better copy, to better images, do better with the reviews and things like that. And, and that will be relatively easy to accomplish and then have high conversions, right? So your conversions or are high.
The second option we have is to actually go into a more saturated high volume market. I've only knits with a differentiated product, with a great product strategy. So if you're going to have high conversions in that kind of a niche without really, you know, going, of course, you're going to invest a ton of go into the red, just to bring up your reviews. And then you can do a lot of black hat stuff in order to officially, uh, inflate things like get fake reviews and things, which I do not recommend you do. It's horrible business practice, but you can't do that. The other option is if you want to break into a very competitive market is you need to put much more thought and effort into your actual offer into the actual product, into the strategy. Because if you can come up with something that is different in a meaningful way that people want, that is new, that is different.
That is somehow meaningfully differentiated. You can break into a highly saturated market and people will still choose to buy your product. Overall, there are more established products with more reviews and things like that because your offer is better or it's different, or it's more attractive to them. So in those cases, you can actually have high conversions coming into it early on with a product, but there's a lot that goes into this. And it's way to integrate, to cover in this video. But this understand that if you want to sell a very popular high volume product, you either have to brute force it, which costs a lot of money and time, or you have to come up with something unique, something different, something that actually converts high, because the offer is more attractive to at least a certain segment of the market. There's just no other way.
So that's option number one, option number two, again, is to just, or that's option. Number two, option. Number one is to just choose something that's less competitive, less saturated, where he can still sit, sell the same. Essentially we offer the same product, but you can do it better relatively easily, and then have high conversions. But what most people do is the mistake is they try to sell the same product as a lot of other sellers in a highly competitive high volume, highly saturated market, and expect to have high conversions. But that is just not going to work unless you can get more reviews than the competition and really brute force it, but that's going to be painful. It's going to cost lots of money, a lot of money. So if you're selling a me-too product, one out of 51 or a hundred, and you've got, you know, less reviews than most of your competition or big portion of them, you don't have a better product.
Again, you have all these issues here. It's just not going to do well with PPC. I can promise you that. So that that's, that's really this first part here. The second part is when it comes to your product selection, you want to have an easy bid scenario. You want to have, you want to sell products with an easy bid scenario, because that's going to make PPC much much more likely to work well. And it's going to make it much easier to sell your product, because ideally you don't have to do anything but PPC to sell the product and a good product listing with SEO, right? Which is easy to do. And then you can rinse repeat that with many products. So this is simply a matter of looking at the data and selecting products with a good bid scenario. Now, what do you do if you're in a difficult scenario?
Well, you can try to improve this ratio here. You can do what you can to make this more favorable. What's you can't really control the cost per click, the CPC so much, but you can control your gross margin. You might be able to, uh, sell a bundle, uh, have follow-on products, increase your AOV, the area's order value, and basically bring this number up. And that can give you a more favorable pit scenario. Things like that, or again, in the first place, just choosing to sell a product with a good bid scenario an easy bid scenario. Again, that would often be higher priced products. Things like that. Now the third thing, how do you fix this? So this is just, it really just comes down to your systems, your supply chain systems, right? Being really good at sourcing, being able to get these good margins, high margins compared to your competition on products, which you can't do in most cases, if you really know how to source well, professionally with the right systems, same goes with quality.
There's no excuse. There's no reason you should have bad quality on a product. You can totally prevent that. You can make sure quality is almost never an issue with the right systems. Same goes with inventory. Now this can be a little bit outside your control when things like CO VI happen, right? You might have some stock outs and things you can't really prevent, but there's a lot you can do to have good inventory planning to make sure you don't run our own entry. And again, it has to do with your systems for imagery, planning for supply chain, managing lead times properly, cashflow related, right? But you can to a very largely agree, 90%, 95% control your inventory and make sure you are in stock consistently. And then you can scale your uh, PPC and your sales. So bottom line here is that this is really what makes Amazon PPC work or not work.
It's these three things, and this is how you actually design the perfect product for ads. So when it comes to existing products, oftentimes you can improve these things so that the PPC works better. You know, if there's one thing you can do to make your PPC work better in general, it is not better ads. It's not better PPC. It's a better offer. It's making the product that offer better for PPC fundamentally. And then if you can do that, PPC will improve by default, right? So oftentimes you can improve these things with existing products, but then when it comes to product selection, you want to obsess about these three things, because this is how you choose a product that works well on Amazon, just through great PPC and SEO. And that's it. You know, if you do this right in any 95% of cases you don't have to do anything else.
You don't have to do many chat, Facebook ads, funnels, influencer, marketing, all that stuff, which is a great thing that is, you know, that is a big, big, uh, drain on your business. It takes time, it takes energy, it takes resources and it will slow you down. It will slow your growth down a lot, but if you can keep it simple and sell your products through PPC and SEO and is rinse, repeat the system, Source products, that's how you can really start to scale and grow your business effectively. And it comes down to mostly these three things. When you select your products and how you optimize your products as well over time. Again, if you can set a select a product that converts well, because the offer again is either differentiated or just the same as other products, but a better offer. You're doing a better job at the simple things.
And you have high conversions for either of those two reasons. That's the first step. The segment thing is choosing a product with an easy bid scenario where like your cost per click might be two bucks, but your gross margin is like 20 bucks. That's going to be easy. The third thing is actually paying attention to your product, having a great product, where you have great margins and it's competitive compared to your competition. You have, you know, as good or better margins than most of your competition quality, same or better than your competition. Never any issues. Inventory. You're able to stay in stock 90 and 95% of the time. And that's not an issue. If you do that, PPC will work and people see you will be easy and that's what you want. So this is how to make the perfect product for ads. And if you're currently struggling to make PPC work for your product on Amazon, and you've tried launching campaigns and videos on how to set up campaigns, that gets you a super low ACoS and et cetera. And it just isn't working, or it's working at very, very low scale. But whenever you try to increase the spend scale, the ads, it doesn't work costs are too high. You're losing money, or just barely breaking even equals it's like 50, 60%. Then the issue is not P P C. It's not the ads. It's these three things. So if you want to improve your PPC, you must first improve these three things and then automatically your PPC will work better. You will improve your PPC.
All right. So I hope you enjoyed part one or free Amazon PPC course, and you can not see more clearly what is actually behind your results with Amazon PPC, either good or bad. And then you are more clear on what to actually do to fix it. Now, make sure you check out part two as well. And I'll place the link here on the video, because we're going to go into more of the technical elements of Amazon PPC in the next part. And if you liked this video again, make sure you subscribe to my channel because I frequently release content like this, which is totally different to anything you've said or seen before. And it can actually be really help you to get better results with your Amazon private label business. Finally, if you are like, bingo, aha, these things make sense. I know what I've got to do.
I just got to fix them, but you're not entirely sure how to do that. You know what actually what steps to take and how to actually make these things stronger for your product and in your business. Then we do have the blueprint. We do have the recipe. Uh, we have done this for, I've been selling for 10 years. We've done this for dozens and dozens of clients. Now help them actually improve these things and get much better results with Amazon PPC. So if you just want the shortcut, the proven way to do this, then I'll also plays a link below this video where you can actually go and book a free call with me. And we sit down and talk about your business and I'll let you know if I think we can help you with this. And if so, what kind of results you can expect from that? So if you're into that, you can go below the video, click that link and book a call with me. Also, I'll place a link to a free case study. We have. If you want to see some more information on this so I'll also have that link below the video. And again, if you want to go watch the next part. If it's already released, then I'll have the link here on the screen about now. So you can click that and go watch part number two. So that's it talk to you soon and bye for now.