Amazon is a massive platform that reaches literally billions of users. It can be one of the best ways to expand your reach to acquire more customers and more importantly to improve your brand recognition.
Unfortunately, there are costs associated with selling on Amazon, and depending on who you are, what you’re selling, in what volume, and most importantly, how much you’re making on that sale, will determine whether you can afford to sell on Amazon.
Amazon works for both large and small businesses, but the costs associated may be more than the smaller sellers can afford depending on profit margin. Before you decide whether it is worth it to sell on Amazon, we’ll break down how the whole process works and what you can expect to pay so that you have a better idea of what you’re getting into.
We’ll also outline some of the benefits of using Amazon paid ads, besides the massive marketplace. One thing to note is that Amazon offers a number of services beyond just a platform for selling. Most sellers don’t realize at first, that Amazon offers resources for order fulfillment, advertising, affiliate sales linking, and other options. All of these features do increase the overall cost though, so we’ll dive into the benefits of each so that you understand what all you do and don’t need from Amazon before you ever start selling.
The actual setup process for becoming a seller on Amazon is fairly easy. Amazon will actually walk you through the process by making a few decisions and then setting up your seller account.
Before you begin that process though, the key thing is to understand your finances, what you’re looking to do and the scale you’re trying to sell at. Amazon actually offers a marketing agency program to help sellers get to market and offer their goods, but this means additional fees and charges and more work when trying to get ready to sell.
If you’re not going this route and have your own marketing agency, or are doing your marketing yourself, then you would just sign up for a seller account. There are two business models that most sellers use.
Third-Party Seller: This is a person who sells goods that another person makes. This means you rely on the supply you are given by the third party and sell the goods accordingly.
Brand Owner: You make and sell your own goods. This puts you in charge of the supply and sale process. You sell exactly what you are able to produce.
When setting up an account, you should consider whether you want to do one or the other, though some businesses do handle both ends of the process, selling their own goods as well as those provided by third-party suppliers.
Once you know what you want to do in terms of the types of selling you want to handle. Go to seller.amazon.com to register your account. Note that you should already have a standard Amazon account before you begin the process. You’ll also need several pieces of information to complete the actual sign-up process.
We’ll go ahead and bullet point the information you should have for clarity.
All of the information you have to provide is fairly standard for setting up any business type of account, so you shouldn’t have any issues with actually opening your seller account.
When you complete the process, you are given access to a platform called Amazon Seller Central. For informational purposes, we’ll break down Amazon Seller Central into its core components and explain what it does for sellers.
Amazon Seller Central is essentially your eCommerce hub for selling on Amazon. It allows you to manage all aspects of the selling process. They even have tutorials on how to sell on Amazon and a fees calculator to help you see what you’ll be paying for selling your products.
The main benefit of the platform is that you can set up your sales pages, adjust product listings, descriptions, rules, prices, and anything else related to the actual products you sell. It also assists with order processing. From here you can add and edit products as you like, adjust, improve, or remove listings and keep track of all your orders.
Additionally, there are brand services. To access these services, you have to be a registered brand on Amazon. To do this, you must apply to the Amazon Brand Registry, which requires more paperwork.
What you’ll need:
This can be a time-consuming process, even if you have all your paperwork together. Amazon has a brand approval process that can take between 1 and 30 days to complete.
Why is this important? Recognized brands get a number of advantages. They get customized product pages with their brand logos attached, higher brand recognition through the seller platform, and a branded storefront. This level of recognition is invaluable to growing both your sales and your web presence. It guarantees that your brand name and logo will be seen by more people as they browse and buy products on Amazon.
Setting up your Amazon Seller Central can be done manually or you can pay for a service through Amazon to have it done for you.
The last official step before you begin selling is the creation of your actual store on Amazon. This is fairly straightforward and is done through templates. Once you select your brand name and click create store, you’ll be directed to add your brand name and logo and select a pre-built template for your store.
There are a few different options, but select the one that presents your products in the way you want them seen and displays your brand in a way that is visible and identifiable. This comes down to personal taste but is an important part of the store setup process.
From there you move on to the inventory setup process where you can add products to your store. This can be done one at a time or all at once by uploading the products to your store. You can follow the instructions through Amazon’s helpful product upload guide to get the gist of how to do it.
After you have all your product pages set up and you’re happy with everything, the last step before you launch the store so that it goes live is to submit it to Amazon for approval, which takes 72 hours. As you can see, beyond the cost, which we’ll discuss further in a moment, there is a significant type lapse between account creation and beginning the selling process.
Selling on Amazon is not nearly as simple as it may seem at first glance. To sum up the entire process, you need to think about the type of seller you want to be, gather all the important documents, create your seller account, get your brand name approved (if applicable), set up your store, and get it approved.
Now that we’ve broken down the process of selling on Amazon, we’ll do a deep dive into the actual cost of selling on Amazon. This can get fairly complicated so we’ll try to break the fees down in a way that lets you figure out what you have to pay, what you may want to pay for, and what you have no use for.
Beyond just the storefront, there is a whole plethora of options and services that Amazon provides to sellers. The trouble is that each of these services has additional fees associated with them. These costs can really add up, especially if you go in for more than what you need.
Before we begin, one quick thing to note is that the costs we are quoting are at the time of publishing and are subject to change. Use these costs as a guideline for what you can expect to pay.
There are two seller subscription plans and each has its own costs and features.
The individual plan is free to set up and the fee is a flat $.99 per item, at the point the item sells. You can create new product pages with an individual account, but you won’t have access to many of the customized reporting options and inventory management features.
The shipping fees are standardized and set by Amazon instead of the seller. You will also not have access to gift cards and promotional sales options. The individual account is also a single account that belongs only to the account holder, permissions to alter the product pages and other services cannot be given to other users.
We can’t say whether this type of account will be right for you, but for individuals that do limited numbers of sales and just want a marketplace to host their products, this is a good option to start with. If sales volume increases or you need access to other features, you can upgrade. Amazon also offers temporary suspension of sales for any reason to either plan holder. This is useful if you run out of stock or suffer a sudden emergency.
The professional plan comes with a flat fee of $39.99 per month. There is no per-product fee directly associated with the plan (though other fees may apply depending on services). You are also given access to all of the product management and reporting features that are offered through a seller account, unlike with an individual account.
One major difference is that with a professional plan, the seller is able to set the shipping rates instead of Amazon. Sellers are also given access to promotional offers, gift cards, and featured listings on products. You are also able to calculate U.S. sales and use taxes on your products through an available feature. Lastly, professional plan owners have the ability to grant access and use rights to other owners/users.
The professional plan is ideally suited for larger sellers that want more control over their products and reports and who do such a sales volume that the per-item fee would be an unnecessary expense. Starting sellers may choose to go with this plan straight away or may choose to wait and upgrade to it.
These are fees assessed to the seller at the point of sale. For individual plan owners, the fee ranges from $.45 to $1.35 per sale, on top of the standard $.99 fee. This means sellers can expect to pay between $1.44 and $2.34 per item sold. These fees are non-negotiable and are applied by Amazon.
Professional plan fees are percentage-based and can vary greatly. There are two types of fees assessed, closing fees, and referral fees which are paid on a percentage of sale basis and range between 6% and 25%, though the average is 13%. Professional plan holders can track fees with a fee calculator to determine the cost of fees associated with the sale of products.
Depending on the place of origin, taxes can vary wildly so we can’t give you an accurate estimate of what taxes, if any, are applicable. Amazon does provide professional plan members a tax calculator for U.S.-based sales. For multinational sales, the taxes can be quite high, so it is best to do some research into these costs to determine what your product is going to cost you so that you can set your shipping costs accurately.
This is what marketers refer to as the “landed cost” of an item, you take the base price of making the item and include the cost to get it to the customer to determine how much it will cost you in total. If you’re planning on selling on Amazon, it’s important to understand the role taxes play in the sale of products.
The cost of a GTIN may vary depending on the size and scope of your product sales. A standard GTIN for just a few products is a one-time fee of $30. For large companies with many products and expectations to add more, there is an annual fee associated with your GTIN and multiple GTINs may be necessary.
You can get an exemption to this, but to be a legitimate brand you must have a GTIN on every product. This is mandatory and facilitates shipping around the world. You should figure out the monthly cost of your GTINs and factor that into the cost of products just like taxes.
The first thing we’ll talk about, and this is one that big business may want to invest in to protect their property, is a registered trademark. You should already have this if you are a branded company, but we’ll assume you’re just starting and need to know the cost. Depending on the level of protection you want, the cost ranges from $225 to $400. This is not mandatory but should be considered essential if you’re using Amazon to build your brand.
Second, and this is one that has to do with getting your products sold, is Amazon PPC Ads. Advertising is an important part of getting your products sold and investing in advertising through Amazon’s PPC ads can help you drive sales to your store. There are a number of ad types, some are directed at new customers and some are directed at marketing towards existing customers through remarketing ads.
Lastly, there are additional marketing costs for influencer marketing and marketing agency representation. These are associated with the marketing methods you choose and whether or not you employ help from Amazon or an outside marketing agency
The last thing we’ll talk about in regards to fees and Amazon are the fees you pay as part of building your brand and marketing your products on Amazon. There are a number of things you can do from using Amazon’s marketing services to maximizing the SEO on your product pages to improve Google rank or running ads through the Google Ads program on outside sites or through SERP.
Using Google Ads and Ad Extensions can help you develop customer data, but these costs are based on each individual situation, like the optional fees above, these services aren’t necessary, but they may benefit your brand.
Marketing and SEO can get expensive but is one of the main ways to drive your sales up. If you’re looking to build brand exposure and sell more products quickly, then these are important steps to take.
These are the basics of many of the different fees associated with being a seller on Amazon. The exact amounts and total costs will vary, but as we’ve discussed, the total cost versus profit on Amazon is calculated by adding in all of the associated fees, the cost of the product, and subtracting that from the sale price.
By knowing this, you can determine whether Amazon is the right platform for you. You may decide the benefits are worth the increased costs or you may decide that you don’t have the right procedures in place to make it worthwhile. The last tip we will give is to get help from a marketing agency or advertising firm to help you set up and run your online shop so that you can maximize the potential for profits.
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Launching an online course is easy once you’ve created your content. Filling your virtual classroom with motivated, paying learners is a little more challenging. Advertising strategies aren’t intuitive no matter how user-friendly a platform might be, and trying to guess at how to market your courses online can feel like you’re shouting into the void. But with a little knowledge and some expert PPC ad strategies, you can get your courses in front of people who are hungry to learn what you teach.
With precise targeting, a professional strategy, budget control, and regular tracking, a PPC ad campaign can transform your course into a thriving program. The key is knowing how to structure your ad campaigns for both clicks and hot leads that convert.
Unlike search engine optimization (SEO), which can take months to gain even a little traction, PPC provides you with immediate visibility right where your target users are hanging out. SEO is important but it’s a long-term game that should be executed alongside PPC ads for the best results. While you’re waiting, PPC generates immediate clicks and drives traffic to your website on the spot.
The best part is that when done right, PPC ads offer a high ROI compared to many other advertising methods. According to the data, businesses earn an average of $2 for every $1 they spend on Google Ads, making PPC a powerful resource for course providers. Here’s everything you need to know about mastering PPC to generate hot leads for your online courses.
1. Understand the learner’s journey
If you want your PPC ads to generate leads ready to buy and not just curious clicks, you need to align your ad strategy with how learners make decisions. Signing up for an online course is not an impulse purchase. It’s a journey that usually starts with curiosity and then moves to research and comparison. When successful, that journey ends with enrollment.
A one-size-fits-all ad won’t work because a student who is just browsing isn’t ready for the same pitch as someone about to hand over their credit card. Understanding the different parts of the funnel, and tailoring your ad campaigns to match each stage, is what will make your course successful. A typical buyer’s journey for learners involves the following stages:
At this stage, your potential students are still exploring broad ideas related to the courses you’re offering. They may not know exactly which course or platform is right for them, but they’re actively looking for options. You’ll need to use a certain type of keyword phrase to capture their attention.
Searches like “learn coding online,” “how to get TEFL certified,” and “language courses for beginners” will work well at this stage. PPC ads in this phase shouldn’t hard-sell enrollment, but rather, focus on positioning your course as credible and informative.
Think free guides, introductory webinars, and blog posts that answer frequently asked questions about your topic. By nurturing your leads’ interests and providing value right off the bat, you’ll have an easier time becoming a trusted brand that people keep in mind as they move deeper into the journey.
During the consideration state prospects know what they want but they’re comparing their options. They’ve narrowed down their choices and are considering factors like price, flexibility, depth, instructor quality, platform, and accreditation. Ideal search terms in this phase are related to specific things that your prospects value or want to achieve like “affordable Python bootcamp,” “online MBA with scholarships,” or “best UX design course with certification.”
Your PPC ads should also highlight unique selling points for your course like “self-paced learning,” “industry-recognized certificate,” or “job placement success.” It’s at this stage where comparison charts, testimonials, and detailed course previews are highly effective. The goal is to show your prospects why your program beats the competition.
At this point, hesitation is minimal. Prospects are ready to sign up but might need one last push. This is where urgency, social proof, and simplicity make all the difference. Ads should feature strong calls to action like “Enroll Today,” limited-time incentives like “Save 20% - Ends Sunday.” This is the perfect time to showcase real student success stories. Landing pages for ads in the decision stage should remove all friction. Avoid long forms and distracting links. Just provide a clear and simple path to enrollment.
Keep in mind that most of your ideal market will encounter your brand multiple times along their journey across different devices and platforms, like Instagram, Facebook, and YouTube. Mapping your PPC ad campaigns to these three stages ensures you’re showing up with the right message at the right time. When done correctly, focusing on all three stages with separate messages will turn casual searchers into qualified leads ready to buy your course.
The backbone of every PPC campaign is your keyword selection. You can write the most convincing ad copy in the world, but if you’re bidding on the wrong phrases you’ll either waste your budget or attract people who have no intention of enrolling.
Your goal isn’t just to drive traffic to your site. You need to drive qualified traffic – people who are serious about learning what you teach and are ready to invest in themselves. This requires targeting a mix of high-intent keywords, longtail phrases, and negative keywords.
Broad keywords like “data science” and “coding” cast a net that’s too wide. You’ll get clicks but most will be from people who are just curious or looking for free resources. To reach people who are committed, you need to target high-intent keywords that show purchase intent. Phrases like “enroll in our data science course” and “online JavaScript certification with ongoing support” will attract users who are actively seeking instruction.
You’ll pay more for high-intent keywords but they deliver more value and higher conversion rates, and that will increase your ROI when you choose the right ones.
Longtail keywords are used to target a smaller pool of people and that’s a good thing. Since these keywords are more focused, the traffic they generate is more valuable. Instead of competing for saturated, general terms like “learn graphic design online,” you target specific phrases like “best graphic design program for working professionals with evening classes.” The people searching with this level of specificity already know what they want, which means they’re more likely to convert.
If you skip targeting longtail keywords you’re leaving money on the table. Data shows that 70% of all online searches involve longtail phrases – it’s just how people naturally search when they know what they want.
Your negative keyword list is how you’ll preserve your budget and prevent wasting money on irrelevant clicks. Without a list of words you don’t want your ads to show up for, you’ll end up paying for clicks that never convert.
Build a negative keyword list of words that indicate someone is looking for something free or irrelevant to your course. For example, words like “free,” “PDF,” “torrent,” and “Reddit” are usually used in searches when someone is looking for shortcuts and freebies. Adding these and similar words to your negative keyword list will filter out tire-kickers and boost ROI by preserving your ad budget for relevant prospects.
Once you have the right keywords that generate impressions, your ad copy has to do the work to get clicks. Your ads need to grab people right away to prevent them from scrolling and possibly clicking on another course provider’s ad. For e-learning, your ads need to inspire people. Instead of talking about your course you want to highlight what your course will do for the learner. This is accomplished with benefit-driven messaging, emotional triggers, and strong calls-to-action (CTAs).
· Benefit-driven messaging. Most course providers list features like “40 hours of video content” and “downloadable PDFs,” but these details aren’t going to capture attention at first glance. In fact, telling learners they’re going to need to sit through 40 hours of content right off the bat might be a deterrent.
Instead, your ads should highlight tangible outcomes like “land high-paying clients with our program,” or “start a new career as a web developer in just 12 weeks.” Benefits speak directly to a person’s goals and aspirations, which is far more compelling than a list of specs.
· Emotional triggers. Emotional triggers are the heart of every marketing strategy, including PPC ads. People make emotional buying decisions and buy courses because they’re chasing a dream, avoiding a fear, or seeking transformation.
Great ad copy taps into these emotions and creates a sense of urgency. For instance, “Don’t miss the enrollment deadline” plays into the fear of missing out, while “Join 10,000 successful graduates” leverages social proof. The right emotional triggers will give people a good reason to act now rather than bookmarking your page and forgetting about it.
· Clear CTAs. Irresistible ad copy includes a direct, compelling call-to-action that tells the prospect what to do next. Generic instructions don’t cut it. “Learn more,” “Click here,” and similar phrases don’t communicate urgency or value. Choose CTAs that direct prospects to sign up for your course. For example, “Start your free trial” and “Reserve your seat today” work well.
In a crowded marketplace where hundreds of course creators are competing for the same attention, clarity and emotion will generate better results. Lead with benefits and tap into people’s emotions and your ad copy will generate serious leads.
Generating clicks from your ads is only the first half of the equation. Once a prospect clicks your landing page needs to convert them to a paying customer or your ad spend goes to waste. Your landing page is like the final pitch where prospective students choose whether to enroll in your course or move on. If your landing pages create any confusion, friction, or distrust, your prospects will lean toward other course creators. On the other hand, an optimized landing page can become a conversion generating machine.
Your landing pages should be simple and clean without too much information. The page content should be specifically designed to direct people to sign up for your course. You want to eliminate navigation menus and sidebars to prevent people from clicking away from the page and getting distracted. Each landing page should have one end goal, either to get sign-ups/purchases or apply for acceptance if required. Too many options will create cognitive overload and reduce the chance of any action.
It’s crucial to include trust elements on your landing pages. When people are thinking about investing their time and money in an online course, they’re naturally going to be skeptical. This is where trust signals can help. Testimonials, instructor bios, refund guarantees, and case studies will help build your course credibility. The goal here is to reassure people that your program is legitimate and worth their investment.
Clicks are important but they’re somewhat of a vanity metric when measured on their own. The only time clicks matter is when you’re looking at your conversion rate. If you generate 100 clicks and get 40 people to enroll that’s much better than generating 1,000 clicks and only getting one person to enroll in your course.
The metrics that matter most are your conversion rate, your cost per lead (CPL), and lifetime customer value (LTV). For instance, you’ll want to track completed signups, demo requests, and enrollments rather than overall clicks.
Cost per lead is a simple measurement that can tell you how efficient your campaign is. For instance, if you’re paying $50 per lead but your average enrollment fee is $500, your margins are good. If your CPL is too close to your revenue then your course might be priced too low or you need to adjust your targeted keywords.
For e-learning, many students invest in more than one course or renew their subscription, which increases their lifetime value to your business. Tracking LTV will help you determine how much you can afford to spend acquiring each new student. For example, if your LTV average is $1,500, it makes sense to spend $200 to acquire each lead. This long-term view helps you maintain profitability and allows you to outbid your competitors who aren’t willing to spend much.
PPC ads require fine-tuning and you can’t just “set it and forget it.” What works today might underperform tomorrow or not perform at all on other platforms. Even small changes can make a huge difference in conversions and that’s why it’s important to test variations. For example, Dell is just one example of a company that saw a 300% increase in conversions from A/B testing.
By running experiments to test different elements you can identify what resonates most with your target audience and optimize your ads based on those results. The most important elements to test are your headlines, CTAs, and images.
· Testing headlines. Your ad headline is usually the first thing a prospect sees. Testing different headlines can help identify which promises resonate most. For example, “Land your dream job” might appeal to people looking for a new career, while “Get certified in 12 weeks” might hook people in a hurry. If you get more conversions from the former, your main audience is likely people looking for a new career, and you can tailor your ads to that group.
· Testing CTAs. A strong CTA can generate more clicks, but what works will depend on your audience. For example, “Get started today” might work for some courses while “Reserve your spot” works better for others. Avoid vague CTAs like “Learn more” that don’t instruct people to take action.
· Testing visuals. Images can put people off or draw them closer. Visuals are processed faster than text and are perceived in a split-second. A single image can make or break an ad. For instance, sometimes a photo of an instructor works well, but other times it’s better to use abstract graphics.
Split testing isn’t optional when you’re running PPC ads. It’s the only way to know which elements make your ads more effective.
At the end of the day, PPC is a great way to build a pipeline of motivated students who want to enroll in your courses. By aligning your campaign with the learner’s journey and optimizing your ads and landing pages for conversions, you can turn your PPC campaign into a reliable growth engine. As the e-learning market becomes more competitive, ads that hit hard are a must.
If you’re ready to stop wasting ad spend and start filling your online classrooms with qualified leads, it’s time to bring in PPC experts. At PPC.co, we specialize in turning clicks into enrollments through high-converting campaigns that deliver qualified leads for online course creators . Contact our team today and let’s build campaigns that fill your classroom.
Pay-per-click (PPC) remains one of the fastest paths to pipeline, but the economics vary widely by industry and are shifting as AI reshapes the SERP. CPCs are up versus prior years, conversion rates have improved in many categories, and lead quality is increasingly a function of how well advertisers feed first-party data into bidding models.
The table below summarizes 2025 search-PPC benchmarks by sector—CPC, conversion rate (CVR), and cost per lead (CPL)—so you can compare what “good” looks like in your niche and calibrate ROI assumptions.
Use these numbers as directional guardrails, then layer in your own close rates and LTV to get to the only metric that matters: profitable growth.
In short, AI is changing the way PPC campaign management is occurring, and it's happening FAST.
ROI ≈ (Close-Rate × Avg Customer LTV ÷ CPL) − 1
Example (legal): if close-rate 12% and LTV $6,000 on CPL $132 → ROI ≈ (0.12×6000 / 132) −1 ≈ 4.45x (345% net). Improve any one input (faster intake bumps close-rate; better routing lowers CPL) and ROI jumps. Benchmarks for CPL/CVR above provide solid starting points. LocaliQ
PPC will keep paying when two things are true:
(1) you can convert and qualify leads quickly, and
(2) your bidding models are trained on the outcomes that actually make you money.
As AI compresses differences in targeting, the edge shifts to first-party data, creative velocity, and value-based bidding.
Treat the benchmarks above as starting points, then rebuild your ROI math from the ground up: ROI ≈ (Close Rate × LTV ÷ CPL).
Contact us today for your customized PPC audit to see how we can improve your search engine marketing ad spend.
