Platform lots · 7 of 8
Amazon Ads CPC
By Oliver Wakefield-Smith, Digital Signet. Updated July 2026.
Sponsored Products, Amazon's core ad format, is bought per click in an auction: you bid on search terms and products, pay when a shopper clicks Amazon Ads, Sponsored Products. No rate card, and, as with TikTok, no public benchmark this site will reprint.
What drives Amazon bids up
Retail media inverted the old logic: the ad sits at the till, not on the way to it. Every competing seller of your product category is bidding for the same top-of-results slots, and because the clicker is often minutes from purchase, sellers bid a large share of their margin. Category competitiveness, not keyword cleverness, sets the floor.
Retail intent vs search intent
A Google search may be research; an Amazon search is shopping. That compresses the funnel: conversion rates on Amazon clicks are generally the strongest in a seller's mix, which is why a seemingly expensive Amazon CPC can produce a cheaper sale than a cheaper Google click. The head-to-head for a first £750 is on Amazon vs Google Ads, with the Google side benchmarked LocaliQ, 2026 data.
The ACoS bridge
Amazon sellers speak ACoS: advertising cost of sales, ad spend over ad revenue. CPC connects to it through conversion rate and price:
Worked bridge · illustrative inputs
Every input above is an illustration of the method, not a benchmark; substitute your own campaign numbers. If your target ACoS is your margin, this is break-even CPC in retail clothing: same maths, different vocabulary.
Who should fund it
Sellers whose buyers already shop on Amazon. If your product is searched generically ("garden shears") it is a candidate; if your customers buy direct from your site, Google Shopping usually comes first. The worked ecommerce budget lives in the online-shop scenario and the ecommerce benchmark page.