Amazon launches new feature, sellers’ CPC advertising may change

According to the latest announcement released by Amazon, for sellers who advertise on Amazon, their ads will now appear on websites and apps other than the platform , and clicking on these ads will jump back to Amazon's product page.

In addition, Amazon also stated that sellers do not need to do anything. When the platform believes that users may be interested in a product, Amazon will automatically display advertisements for the product and deliver them based on data such as the advertising budget created by the seller.

However, some sellers have raised questions. If they have already placed advertisements on other websites, will Amazon’s advertisements compete with their own advertisements? What should they do then?

For example, some sellers may already have ads on Pinterest to drive traffic to their own websites, which could compete with Amazon’s ads on Pinterest for that seller. Even if a shopper only clicks on one ad, the seller’s advertising costs could be higher due to more intense competition for ad space on the page.

In response, Amazon said that sellers can choose not to place advertisements on specific websites or apps, or they can simply turn off this feature, in which case Amazon will not automatically place off-site advertisements for sellers.

Amazon also said that some sellers mainly use off-site advertising to attract traffic to their own independent sites, while on Amazon they mainly rely on CPC advertising. However, Amazon's new function can be used to place ads when it determines that consumers are interested, and only generates fees after users click on them, which can help sellers improve the efficiency of their advertising.

“Because Sponsored Product ads are so well integrated with Amazon’s search results, consumers often don’t even realize they are seeing an ad,” JungleScout noted in a guide last year. “It will now be interesting to see how users react to Sponsored Product ads appearing on sites other than Amazon.”

In fact, in addition to Amazon, other e-commerce platforms have already launched similar features. As early as 2021, eBay launched an optional off-site advertising plan, and Etsy has also launched a similar advertising plan before.

However, some people feel that e-commerce platforms have the responsibility to bring traffic to their websites and then display sellers' products in search results, but now these off-site advertisements transfer the costs from the platforms to the sellers.

Amazon did not respond to requests for comment.

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