Amazon’s Growing Interest in Google Product Listing Ads: What Sellers Need to Know

Amazon has been a dominant force in online retail for many years. However, as more consumers search for products on Google, Amazon sees an opportunity to reach new customers through Google Shopping ads. In this in-depth guide, we’ll explore Amazon’s testing of Product Listing Ads (PLAs) on Google, what it means for sellers, and strategies for competing in this evolving landscape.

Why is Amazon Turning to Google Shopping Ads?

As the e-commerce giant, Amazon has long dominated product searches that start on its own site. However, studies show Google captures over 70% of product search traffic, giving competitors like Walmart and eBay a chance to capture customers before they reach Amazon.

By tapping into Google Shopping ads, Amazon aims to reach consumers in the moment they’re researching products on Google. This allows Amazon to potentially steer those buyers to its marketplace before they consider other sites. It’s a strategic move by Amazon to own more of the customer journey from product search to purchase.

How is Amazon Testing Google PLAs?

Amazon began limited testing of PLAs on Google in late 2017. Reports showed Amazon ads triggering for some product searches but not others.

Since then, Amazon’s testing of PLAs appears to have continued in a gradual, controlled manner. They’re unlikely to fully commit PLAs until properly analysing impact on traffic, sales, and advertising costs. Amazon also needs to consider how PLAs may affect relationships with merchants selling on its marketplace.

At this stage, it remains unclear exactly which products or marketplaces Amazon is targeting within its PLA tests. As with any new Amazon initiative, sellers would be wise to closely track discussions and reports within seller forums for the latest developments.

What PLAs Mean for Amazon Sellers

For Amazon sellers, PLAs open up another potential sales channel but also introduce new competition. Here are a few key implications:

• Increased visibility on Google: Well-optimised Amazon product listings in PLAs may drive more consumers to product detail pages, benefiting sellers.
• Higher CPC bids needed: With Amazon’s deep pockets, sellers may need to bid more aggressively to outrank Amazon ads. This could increase advertising costs.
• Shifting buyer behaviour: Over time, Amazon PLAs may condition some buyers to start product searches directly on Amazon rather than Google. This shifts purchase funnel dynamics.
• Fair playing field needed: If Amazon leverages its marketplace data unfairly in PLAs, independent sellers will struggle to compete on equal terms for keywords. Transparency is important.

Overall, Amazon entering the PLA market creates uncertainty but also opens up new potential customers for sellers savvy enough to optimise their ads and listings for this evolving landscape. Staying on top of the latest developments will help sellers effectively strategize.

How can sellers compete against Amazon’s growing PLA presence?

Given Amazon’s scale and resources, outcompeting them in Google ads will take dedication. But sellers have tools at their disposal:

• Optimise product listings: Sellers must ensure all relevant specifications and high-quality images are included to attract buyers on Google Shopping tabs. Refer to our guide on optimizing Amazon listings.
• Target niche keywords: Going after broad, high-volume terms will be difficult. Target niche keywords catering to the seller’s individual products or brand.
• Use innovative bidding strategies: Consider strategies like targeted CPC bidding and bid modifiers to elevate positions for product types Amazon doesn’t offer.
• Remarket to website visitors: capture contact details to remarket product offerings on Google Display Network and Facebook. This allows for reaching consumers who are already interested.
• Add value through content. Useful blogs and guides establish sellers as industry experts and encourage direct website visits even if an Amazon sale isn’t direct. For example, this informative guide!
• Launch a standalone website. Drive traffic away from Amazon long-term using their own site and social following as customers get familiar with the seller’s brand over time.

With ingenuity, sellers stand a chance of cutting through increased PLA noise. Constant testing and adapting strategies to this evolving landscape will serve them well in the in the long term.

Key Takeaways

• Google Search captures over 70% of product search traffic, prompting Amazon to test PLAs for reaching consumers.
• Amazon’s PLA testing so far has been gradual, but as with any new Amazon initiative, sellers need to track discussions.
• Independent sellers may face higher PPC costs and tougher competition with Amazon’s scale, necessitating optimised listings and targeted bidding strategies.
• Adding value through content, capturing contacts to build remarketing campaigns, and developing standalone websites can help sellers thrive alongside Amazon’s PLA presence long-term.
• Constantly adapting strategies to this changing landscape through testing remains important for sellers to remain competitive.

FAQs

How long will Amazon’s PLA testing last?

It’s difficult to say: Amazon often tests new initiatives slowly before fully committing resources. Sellers should plan long-term and track discussions closely for insights.

Will Amazon PLAs impact sales on their marketplace?

Potentially, if Amazon is able to attract buyers earlier in their research process,. However, many buyers may still complete purchases on Amazon due to trust and convenience.

What products is Amazon targeting in PLAs so far?

Reports suggest Amazon has tested PLAs for broad product categories like home goods and consumer electronics. However, their precise targeting remains unclear during this testing phase.

How can sellers keep bids low against Amazon?

Leveraging niche targeting, strong listing specifications, and value-added content are ways for sellers to compete without needing to outbid Amazon on every keyword. Constant testing remains key.

Are independent sellers doomed to compete against Amazon?

While the challenge is significant, sellers who continue to add value for customers through service, expertise, and differentiators stand a good chance of retaining and growing their customer base over time, despite Amazon’s scale. Optimisation and perseverance will be important factors.