If you sell a handful of products on Amazon, you do not need a huge advertising budget. You need a focused one. This guide explains how to size it.
Why a small catalog is an advantage
Fewer products means you can put every dollar behind the ones that earn money. Large catalogs spread budget thin across hundreds of listings. A small catalog can concentrate it.
Start with your most profitable products
We begin with the products that have the best margin and the strongest reviews, not the whole catalog. Advertising a product with thin margins or few reviews mostly burns budget. Once the strong products are working, we expand.
What decides your budget
- Your margin per sale. It sets how much you can pay for a click and still make a profit.
- Your competition. Cost per click varies widely between categories. A budget that works in one can be too small in another.
- How many products you advertise at once. More products need more budget to give each one enough data.
Because every category is different, there is no single number that fits every seller. We provide a specific budget proposal based on your category and margins.
Why the budget still has to be enough
Amazon’s system learns from clicks and sales. If the budget is too low to produce data, you cannot tell what works and what does not. A smaller number of products with enough budget beats many products with too little.
How long until you know it is working?
Plan on about 3 months for reliable results. The first weeks are for testing and cutting wasted spend. Judging earlier usually means stopping right before the account starts to learn.
What does management cost?
Our management fee is a percentage of ad spend, from 20% down to 10% as spend grows, with a minimum of $1,000 per month.
Do you need a contract?
No. We work month to month, though we recommend giving the account at least 3 months.
The short answer
With a small catalog, budget is about focus. Start with your most profitable products, size the budget to your margins and category, and give it time to learn. Request a free audit and we will tell you honestly what budget makes sense for your products.