Top of the search may not be the best option for your brand

Unpopular opinion, but being at the top of the search results in Amazon ads may not always be the best option. While I have personally witnessed high conversion rates for products appearing at the top of the search in most cases, there is a downside to consider.

The intense competition for those top positions drives up the cost per click (CPC) as numerous sellers are determined to showcase their products there, often without realizing that their products haven't yet established a strong presence in the market. These sellers launch their products and immediately aim for top search placement, despite having only a handful of reviews and no significant browsing history. They end up competing against well-established players in the category with thousands of reviews, and to make matters worse, they engage in price wars, offering their products at lower prices than their competitors. However, it's important to understand that for Amazon products, having top reviews and ratings is crucial for success.

These top brands have invested considerable time and effort to reach their positions. By simply trying to replace those listings through ads, you will likely end up paying significantly more in CPC. Moreover, you'll be trying to sell a similar product at a lower price, facing higher CPC and lower conversion rates compared to your competitors. All three factors work against you and will ultimately increase your Advertising Cost of Sales (ACoS). Selling at a lower price means your Average Selling Price (ASP) is reduced.

Additionally, paying a higher CPC results in spending more on the same clicks that your competitor is currently obtaining. Furthermore, you'll likely experience lower conversion rates. If your competitor has 500 reviews on their product, it's natural for them to achieve a conversion rate of 10-15 percent, while you may struggle to reach 5-2-3 percent with your mere 10, 15, or 20 reviews.

Therefore, it is crucial to stop blindly chasing the top of the search and allow your top-performing products to occupy that space, while exploring other placements for your newer products.