Amazon Product Ads Introduces New Prices
August 10, 2010 
2 Comments
I just received an email from Amazon about its Product Ads service. They seem to have taken the advice of the many sellers that were not happy with the pricing structure and will be rolling out a new one on September 30, 2010. Based on the email, Amazon will be providing a new tier CPC rate for anyone using the product ads service. This will hopefully ensure that everyone will start to advertise products of lower costs. Each category will be divided up into three pricing tiers based off of product price. Here is the email sent from Amazon.
Dear Product Ads seller,
On September 30, 2010, we will be changing to a new, more flexible cost-per-click
pricing model that takes into account the price of the advertised product. We
believe the new model will better align our minimum bid structure with the price of
the product you advertise to make Products Ads an even more efficient marketing
channel for you. If you have either stopped advertising lower priced products
through Product Ads in the past or have decided not to advertise lower priced
products due to cost concerns, we recommend that you consider listing those products
under the new pricing model.Under the new pricing model, each product category will be divided into three price
tiers based on the price of the product being advertised. For example, the “Baby
Products” category will be divided into three subcategories that consist of (1) baby
products priced under $25 (with a minimum bid amount of $.10 CPC), (2) baby products
priced between $25 to $50 (with a minimum bid amount $.25 CPC), and (3) baby
products priced over $50 (with a minimum bid amount $.50). This will give you the
opportunity to list more selection across all price points.To see what this new pricing model will look like and edit your bids prior to
September 30, 2010, go to
https://sellercentral.amazon.com/advertiser/biddingUI/?itemID=200137680 (log in
required). If you do not change your bids (in the Manage New Bids Section) by
September 30, 2010, they will be automatically set to the new minimum bids, so
please consider whether the new minimum bid amounts are acceptable to you.Bids set in the new pricing model will be reflected in your Performance by SKU
reports and in your invoices generated after September 30, 2010.If you have concerns about the new pricing model or changes to your minimum bid
amounts, or you believe you have been overcharged, please contact our support team
using the Contact Seller Support link located at the bottom of any page in your
Seller Central account.Best Regards,
The Amazon Product Ads team
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This is definitely great news for merchants on Amazon Product Ads. Hopefully the other comparison shopping engines follow suit and take into account merchants that sell low priced goods in relatively high CPC categories.
Thanks for stopping by Andrew. We are actually about to review the service that CPCStrategy.com provides. I believe Shopping.com is the only one that has introduced tiered prices, but hopefully others will do it as well. I agree that it will be good for other merchants and good for the engines.