Amazon PPC Agency

An agency can begin using Amazon's own advertising infrastructure without purchasing a third-party PPC platform.

Amazon Ads Academy currently provides free courses, videos, learning paths, and certifications.

Amazon Ads Manager Accounts allow agencies to manage multiple advertiser accounts from one login.

A manager account can:

• connect multiple advertiser accounts;

• manage users;

• access billing information;

• view top-level campaign metrics;

• manage Sponsored Ads and Amazon DSP accounts.

Amazon's own documentation gives the example of an agency managing three different clients through one Manager Account.

Sponsored Products is Amazon's core PPC advertising product.

It uses a cost-per-click model.

The advertiser:

1. selects products;

2. chooses keyword or product targeting;

3. sets bids;

4. sets a daily budget;

5. launches the campaign.

The advertiser is charged when a shopper clicks the ad.

Amazon currently states that Sponsored Products campaigns have no monthly or upfront advertising fees.

Sponsored Products are currently available to:

• professional sellers;

• vendors;

• book vendors;

• Kindle Direct Publishing authors;

• agencies.

The advertised product must meet Amazon's eligibility requirements.

Sponsored Brands can use several billing models depending on the campaign objective.

Amazon currently supports:

• CPC for campaigns optimized for page visits;

• vCPM for viewable-impression objectives;

• fixed upfront pricing for certain share-of-voice placements.

Amazon states that CPC and vCPM Sponsored Brands campaigns do not require a minimum spend.

1. Obtain access to the client's Amazon Ads account.

2. Review product margins, Amazon fees, current advertising data, and inventory.

3. Identify products suitable for advertising.

4. Review existing campaigns and search-term reports.

5. Build or restructure campaigns.

6. Separate branded, generic, competitor, and product-targeting activity where useful.

7. Add negative targeting to remove irrelevant traffic.

8. Adjust bids and budgets.

9. Measure ACOS and ROAS alongside actual product profitability.

10. Reduce or stop campaigns that cannot meet the seller's economic targets.

Amazon Advertising Cost of Sales is calculated as:

ACOS = ad spend ÷ ad-attributed sales × 100

Amazon gives the example:

• US$50 advertising spend;

• US$100 advertising revenue.

Result:

50% ACOS

Amazon explicitly states that there is no single universally good ACOS because the acceptable level depends on factors such as the business, margins, and campaign objectives.

For sellers, the useful ACOS ceiling depends on product economics.

Suppose a product sells for:

US$100

After Amazon fees, product cost, shipping, returns, and other direct expenses, the seller retains:

US$25 before advertising

The approximate break-even ACOS is:

US$25 ÷ US$100 = 25%

If advertising ACOS is above 25%, the product would lose money under these assumptions before considering agency fees and overhead.

This is a calculated illustration.

A seller should therefore not choose an ACOS target without knowing contribution margin.

Amazon defines ROAS as:

ROAS = ad-attributed revenue ÷ advertising spend

If:

• advertising spend = US$100;

• attributed revenue = US$500;

then:

ROAS = 5

ACOS and ROAS express essentially the same relationship in different forms.

An agency should evaluate more than Amazon's advertising dashboard.

Relevant client costs can include:

• product cost;

• Amazon referral fees;

• Fulfillment by Amazon fees;

• inbound shipping;

• returns;

• discounts;

• storage;

• advertising;

• agency fees.

A campaign can show strong advertising revenue while still producing weak overall profit.

This connects directly with Amazon FBA economics.

Amazon operates a Partner Network for agencies and advertising technology providers.

Registered partners can access:

• learning resources;

• partner resources;

• certifications;

• Partner Directory opportunities;

• developer resources.

Amazon specifically lists agencies that provide hands-on campaign management and optimization as intended Partner Network participants.

Current Partner Network policies require participating businesses to maintain a functional public business website that identifies the company and its advertising services.

Amazon currently offers partner statuses including verified and advanced status.

Amazon announced that decisions on partner status are paused through Q4 2026 while the program structure is being updated.

Existing statuses remain unchanged through 2026.

A new Amazon PPC agency therefore does not need a partner badge simply to start offering campaign management.

Amazon Ads Academy provides certifications covering Amazon advertising products and solutions, including Sponsored Ads and Amazon DSP.

Creating an Amazon Ads Academy account is currently free.

Certification requires passing the relevant assessment.

Certification can support agency credibility but is not the same thing as Partner Network status.

Sponsored Products allows advertisers to use:

• keyword targeting;

• product targeting;

• automatic targeting;

• negative targeting.

Negative targeting can remove search terms or products that repeatedly generate clicks without useful conversions.

The agency should evaluate actual search-term performance instead of assuming every keyword containing the product category is economically useful.

Advertising should be coordinated with inventory.

Sponsored Products require eligible advertised products, and Amazon notes that the ads only appear while the advertised item is in stock.

Aggressively advertising a product with limited inventory can therefore create operational problems.

A campaign may also lose momentum if inventory runs out during a profitable period.

Agencies should generally manage client advertising through Amazon's account-access and Manager Account systems rather than making a client dependent on an agency-controlled seller identity.

This allows:

• clearer account ownership;

• easier client departure;

• centralized agency access;

• separation between different advertisers.

• Low ACOS does not automatically mean high profit. Product margins and Amazon fees must be included.

• PPC cannot fully repair a weak listing. Poor price, reviews, product-market fit, or inventory can limit campaign results.

• Percentage-of-spend fees can create incentive conflicts. Agency revenue increases with spend even when additional spend produces weak returns.

• Advertising attribution is not identical to incremental sales. Amazon uses attribution rules to assign sales to advertising interactions.

• Client concentration creates agency risk. A few large seller accounts can represent most of an agency's recurring revenue.

• Amazon Ads — Sponsored Products

• Amazon Ads — Sponsored Brands

• Amazon Ads — Manager Accounts

• Amazon Ads — Partner Network

• Amazon Ads — Partner Network Policies

• Amazon Ads — Verified and Advanced Partner Status

• Amazon Ads Academy

• Amazon Ads — Certifications

• Amazon Ads — Advertising Cost of Sales

• Amazon Ads — Return on Ad Spend

• Amazon Ads — Sponsored Products Best Practices

• Amazon Ads — Advertising FAQ