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Amazon shuts down Product Ads

Posted on August 27, 2015 by Mateusz Miodek

As of October 31 Amazon will no longer offer Amazon Product Ads.

Amazon Product Ads has been a popular sales channel among retailers. They could display a product ad with a link to the merchant’s website on the Amazon Marketplace, as opposed to actually having to sell products on Amazon Marketplace.

amazon product ads
Amazon Product Ads has been a viable alternative to Amazon Marketplace, readily used by merchant who could not (due to category restrictions) or didn’t want to (due to the complexity) sell through Amazon Marketplace.

Amazon did not elaborate on their decision, but it is speculated that an increasing popularity of Amazon Products Ads caused too many merchants to be driven off Amazon Marketplace – a loss that, in a long run, has not been sufficiently compensated by the revenue coming from Amazon Product Ads.

What next?

If you’re currently advertising with Amazon Product Ads, you still have some time to decide how you’re going to reallocate your budget and efforts. Below we introduce a few possible options:

Amazon Text Ads

To fill the void, Amazon introduced a new advertising program – Amazon Text Ads. It will be keyword-driven and available for advertisers in the same account as Amazon Product Ads.
Text ads campaigns can be created from the scratch or imported from Google Adwords.
The results of Amazon Text Ads are yet to be seen, but it is not likely that the new text-ad format will fully make up for the discontinuation of Amazon Product Ads. That is why you should be prepared to relocate part of the budget to other shopping engines.

Other Shopping Engines

There are many interesting channels out there, which can fill in the gap. The most popular being: Google Shopping, Bing, Nextag and Facebook Product Ads. All of them are supported by DataFeedWatch.

Amazon Marketplace

You can also do what Amazon probably would like you to do – switch to Amazon Marketplace. That way, you will continue to sell your products on Amazon, which has been a very profitable channel for many merchants. DataFeedWatch has made data feed creation for Amazon Marketplace just as simple and easy to use as any regular shopping channel.

amazon product
To learn the difference between a Comparison Shopping Engine (CSE) and a marketplace I recommend you read this article – Marketplaces vs. CSEs vs. Affiliate Networks vs. Search Engines.

If you decide to give it a go please consider taking advantage of our Amazon Marketplace service.

As always you are welcome to share your thought on this topic in the comments below.

 

About DataFeedWatch

DataFeedWatch is data feed management software that enables merchants on Magento, Shopify, Volusion, 3Dcart, BigCommerce, WooCommerce, and numerous other shopping carts to optimize their product data feed for Google and 500+ Shopping Channels

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Posted in: Comparison Shopping Engines

Comments (1)

  1. Z_Lauren_Z August 28, 2015

    PLEASE, PLEASE, PLEASE People – do NOT sell on Amazon UNLESS you are the manufacturer. I know plenty of people who did well selling on Amazon until Amazon cut them out and bought directly from the manufacturer.

    Besides charging pretty outrageous fees (15% for most) and holding your money for way too long Amazon is USING YOU as a guinea pig. If what you are selling does well on their site they will try to source that product for themselves.

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