Facebook Ads are still the most cost-effective and scalable external source of traffic available to Amazon sellers. In this article we will outline an approach toward building sales funnels for Amazon with Facebook Ads.
Why Drive External Traffic
Amazon continues to take over the e-commerce world, so sellers are always looking out for ways to expand their presence on Amazon.
Using off-Amazon channels provides an excellent opportunity to make sales and boost rankings on Amazon.
To be clear, most sellers probably shouldn’t bother with external marketing until their Amazon listings are well optimized. Sponsored Products are typically more cost effective than any off-Amazon channels (unless you already have a built-up following).
But once you have all your ducks in a row on Amazon itself, it makes sense to experiment with other channels to reach new potential customers and grow your Amazon business.
Facebook Ads reign supreme as the best form of external marketing for a few reasons.
#1: Wide User Base – Their are over a billion users of Facebook & Instagram worldwide. There’s a good chance that a lot of people who would make great customers, but who aren’t searching for you on Amazon, are on Facebook or Instagram. And you can go find those people with paid ads.
#2: Sophisticated Targeting – Facebook’s targeting tools are powerful. They have a treasure trove of data on people, which you can leverage to target ads to the people most likely to become your customers. You can build audiences based on demographics, interests and behaviors. And you can create Custom & Lookalike Audiences to show ads directly to people on a list, past customers and people similar to past customers.
#3: Interruption Marketing – Facebook Ads are qualitatively different than Amazon Sponsored Products, Google Ads and keyword-based advertising platforms. With Facebook, you show ads to people on Facebook (and/or Instagram). And if your ad interrupts them in a good way you can bring new people into your funnel that otherwise wouldn’t have found your brand and products.
Don’t Make These Mistakes
There are two very common mistakes that many Amazon sellers make when starting with Facebook Ads.
Mistake #1: Having bad products/listings
Facebook Ads work best for unique products that have a refined value proposition and product-market fit. Don’t waste money advertising lame products.
If your Amazon listing is not optimized for conversions, you will also waste money with Facebook Ads. High-quality images and engaging copy is essential to making sales, no matter where a prospect discovers you. Furthermore, if you have a sub-optimal keyword strategy, you won’t reap the full range of ranking benefits that external traffic provides.
Mistake #2: Driving traffic straight to Amazon
Traffic from a Facebook Ad is less likely to convert than traffic internal to Amazon. Why? Because people on Amazon are in buying mode (they are Primed to buy). People on Facebook are not.
If you drive traffic straight to Amazon, your conversion rates will likely suffer (unless you are super, super confident in your targeting, ad design & copy).
By driving traffic straight to Amazon, you are hoping for a quick sale. But giving up on a better opportunity. Which is to build a sales funnel.
Building A Sales for Funnel For Amazon With Facebook Ads
A sales funnel means you lead people towards purchasing. If they don’t purchase right away, you need a way to make additional touchpoints. Thus, you need a landing page.
The landing page serves several functions to increase conversion rate.
- Filter / qualify traffic – Prospects unlikely to convert will bounce off the page and never reach Amazon.
- Distribute coupon codes – You can incentivize purchases with discount codes. Building landing pages specifically for Amazon, with a tool like LandingCube, allows you to automate the process of distributing promo codes.
It also allows you to collect emails, which you can use to request reviews, send promos for future launches and many other ways to stay in contact with customers. If you collect emails before a prospect reaches Amazon, it’s not against TOS to market to them.
The landing page also enables you to place the Facebook Pixel for later retargeting.
And you can insert affiliate links on the landing page, which you cannot place directly in a Facebook Ad. This allows you to track final sales and recoup some of the advertising spend.
So if you do Facebook Ads right, you can increase conversion rate on Amazon, make more sales & collect more product reviews. All the while expanding your marketing toolkit to enable email marketing & retargeting.
Some Practical Tips on Facebook Ads
Test! Test! Test!
Testing is key with any digital marketing campaigns, including Facebook Ads. You’ll want to test multiple audiences, different ad designs and copy. Leverage the data you collect over the course of the campaign to make additional tests and improve going forward. It’s best to approach Facebook Ads with an experimental mindset.
Promo Campaigns for Ranking & Reviews
Offering discount codes is the best way to turn strangers on Facebook into customers on Amazon. There are two main types of promotions. Discounts under 30% are great for harvesting reviews, while also being more profitable and attracting customers with a higher lifetime value (they are willing to give you more money). Discounts of about 70% see the highest conversions and thus are great for boosting rankings on Amazon.
Use Lookalike Audiences
If you’ve made at least 500 sales on Amazon, you can target ads to people that are similar to the people who bought from you. You do this by creating a Lookalike audience in Facebook based on the data available in the Amazon Fulfilled Shipments report (found in Seller Central).
To learn exactly how to setup these lookalike audiences, watch chapter 6 in this Video Course on How To Promote Amazon Products on Facebook.
For a written guide, check out this How-to article.
Facebook Ads provide an excellent opportunity for Amazon sellers to boost Amazon performance and building a powerful brand.