Episode #99 - CPCs: Beyond Just the Numbers 🔍
Summary: In episode 99, we debunk the common concern about rising CPCs on Amazon. While the numbers might be increasing, the real story lies in understanding the percentage of CPC relative to your selling price, considering inflation, and the dynamics of the marketplace.Description:Good morning to our dedicated listeners on this fine Monday! We're on the cusp of our milestone 100th episode, and I can hardly contain my excitement for what's in store tomorrow. But first, let's dive deep into today's topic: Cost Per Click, or CPC.Understanding CPC: There's a prevalent sentiment among Amazon sellers that CPCs are on a relentless upward trajectory. While this might be statistically accurate, the narrative often overlooks the real picture. It's not just about the value of the CPC but how the CPC relates as a percentage of your selling price.Inflation and Its Impact: A critical factor to consider is inflation, which inherently devalues money over time. With goods, shipping, and various other costs witnessing a rise, many sellers have adjusted their prices accordingly. A price increase means you can allocate a higher CPC, provided your conversion rate remains consistent.The Essence of CPC: Think about it – if the selling price of a product increases due to inflation or other market dynamics, a proportional rise in CPC is natural, especially if your conversion rate stays consistent. This correlation helps us understand that merely stating "CPCs are rising" isn't necessarily an alarming fact. Instead, it's an outcome of broader economic and marketplace dynamics.Digging Deeper: Let's not forget other contributing factors, like organic rankings, competitors' behavior, and your specific goals in terms of market share. The ratio between PPC sales and organic sales plays a significant role in determining your CPC. So, it's crucial to adopt a more nuanced perspective rather than jump to conclusions based on standalone numbers.To sum it up, the next time you come across the statement, "CPCs are too high," remember it's about understanding the entire ecosystem and not just isolated numbers. It's a combination of your product's price, market dynamics, and strategic objectives.Thank you for joining today. As always, stay curious, keep questioning, and remember to tune in tomorrow for our grand 100th episode. Until then, take care and have a productive start to your week!Thanks for listening and if you like the podcast make sure to subscribe!Check out the YouTube Channel as well:https://youtube.com/@AmazonAdsRawDailyMore Infos about the Me & the Podcast can be found here:https://alexanderswade.com/amazon-ads-raw-daily/Follow me on LinkedIn:https://www.linkedin.com/in/alexanderswade/ Hosted on Acast. See acast.com/privacy for more information.
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