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These pages explain how Amazon works. Most of what people believe about Amazon ads comes from Amazon’s own guides and industry habit; where we have measured something ourselves, the measurement wins, and every page says which is which.

How to read these pages

Every factual claim carries one of four labels: A number can be true and still be specific to its sample: a measurement on a few stores in one month is evidence, not a law. When two sources disagree, each page prints the most recent measurement on the largest sample and says what it was.

Five things most advertisers get wrong

  1. A bid mostly buys entry, not a better price. Raising a bid wins far more auctions than it changes where the ad lands or what a click costs. See The Auction.
  2. Many clicks are charged the full bid. Amazon’s auction does not behave like the clean “pay just above the next bidder” auction most guides describe. See The Auction.
  3. Organic clicks fall smoothly down the page. There is no cliff after the first row: each place lower loses a little, and beyond the top ten the click rate sits on a low floor. See Organic and Paid.
  4. Every demand source ranks searches well and counts them badly. Each one is reliable for which search is bigger, not for how big. See Demand and Markets.
  5. Nobody has measured how much paid sales lift organic rank. It is the most common belief in the industry, and ours too; it is still a hypothesis. See Organic and Paid.

The pages