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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When you’re a plumber relying on a steady flow of leads to be profitable, it’s not enough to get your leads through word-of-mouth alone. That may work if you’re only a two-person team, but if you plan to grow your business, you’ll need to start marketing your services, specifically with PPC advertising.
Pay-per-click (PPC) ads are a beneficial form of advertising, but they can be a source of leads or a money pit for plumbers. When done right, PPC helps plumbing companies generate targeted leads looking for services, but poorly-crafted PPC campaigns can burn through a budget without results. The good news is with smart targeting, strategic bidding, and continual optimization, plumbers can generate qualified leads at a cost that provides a positive ROI. Here’s how pay-per-click (PPC) advertising is done for lead generation for plumbing businesses.
The biggest mistake plumbers make is targeting a broad area rather than a specific local area. Hitting your target audience by demographic and location will be critical to be most efficient in your PPC ad spend. Even when your company serves customers throughout several counties, you’ll want to create ad campaigns that target each individual city or county. If your ads are reaching people outside of your service area, you’re paying for clicks that won’t turn into paying customers.
An easy way to prevent this problem is to use location targeting inside of your PPC account to set your target location by zip codes, cities, or a custom radius around your main location. This will ensure your ads will only be seen by leads you can actually convert.
You’ll also want to explicitly exclude areas you don’t serve. For example, you might serve a whole county with the exception of a couple cities or neighborhoods because of traffic congestion or licensing issues. Make sure to add these locations as exclusions in your ad campaign settings to avoid wasting money.
The keywords that will bring you the best leads are keywords that signal high intent to purchase. This includes terms like “emergency plumber near me,” “24-hour plumber,” “toilet overflowing fix,” or “fix for busted pipe.” The people who search for these terms aren’t just casual browsers. They’re people who need a plumber immediately.
This type of expert keyword research isn't necessarily rocket science, but it's critical for your rankings in search engine results pages.
Prioritize these keywords and increase your bid to capture more of these leads.
Avoid using the kinds of keywords that will attract people who aren’t likely to hire you for plumbing services. For example, terms like “DIY toilet repair” or “how to fix (fixture)” will rarely lead to calls. People who search for these phrases are usually just looking for ways to fix their own problem, so filter them out.
When people need a plumber, they want to call and get someone out fast, especially if their basement is flooding or they’re dealing with a busted pipe in the house. Google offers call-only ads that let users tap to call you immediately from search results rather than click to visit your website, where they’d need to search for a way to contact you. This ad type alone will increase your conversions.
It’s crucial to use ad tracking tools like Google’s call forwarding or third-party platforms that track which ads generate your phone calls. Knowing what ads are driving your best leads will help you do more of what works and eliminate what doesn’t.
Since most leads will want to call you immediately, only schedule your ads to run when you’ll be available to answer the phone. If you don’t offer 24/7 emergency services and don’t answer your phone at 2 AM, don’t schedule your ads to run until the start of your business day.
Depending on your location and services, you might get more calls on weekdays or weekends. To find out your peak, check your reports to see when you’re getting the most calls and then adjust when you run your ads based on your actual performance data.
Don’t create complicated, wordy ads. Use simple, clear, and direct headlines that speak directly to the problems your leads may be dealing with. They’re going to be drawn to ads that promise to help them with real problems. For example, write headlines like “Broken water heater? Get 24/7 help,” “Clogged drains fixed fast,” and “Overflowing toilet? Get help now.”
In your ad copy, it helps to use location-specific phrases. For example, you might write “Serving Phoenix homes since 2001.” Doing this helps build trust and establishes relevancy.
For Google Ads that send visitors directly to your website, you’ll need to optimize your landing pages for conversion. The following elements are essential:
· Landing page copy that matches your ad. To create a seamless experience, don’t send leads to your home page. Send them to a landing page that matches your ad. For example, if your ad targets people with a clogged drain, ensure your landing page speaks to people with a clogged drain.
· An easy-to-find phone number. Your phone number should be readily visible on every page of your website, including all of your landing pages. The ideal place is in the top right corner of every page header.
· A click-to-call button. It’s easier for mobile leads to click to bring up your phone number in their dial pad rather than forcing them to write down a phone number they’ll need to then dial.
· A call-to-action (CTA). Leads need to be told what to do. Be direct and tell them to call you now for an estimate or to schedule a service call.
Your search ads will only bring you potential leads. Your landing pages are responsible for converting potential customers into paying customers.
To maximize your ROI without wasting money, you’ll want to set a realistic daily budget and scale it only when you know you’re ready. Most local service providers stick with a $10-$50/day budget, but it depends on the industry and your location.
Over time, you’ll find that some campaigns are working better than others. A varied performance can be caused by a variety of factors, and you’ll need to take a close look before making any changes. For example, underperforming keywords and plumbing ads that don’t get many clicks should be paused. However, if your ads are getting clicks, but limited conversions, you’ll want to tweak your landing page copy and/or your offer.
Sometimes irrelevant keyword searches will display your ads, so if you can come up with a list of keywords related to services you don’t provide, you can limit where your ads show up. For example, if you don’t offer sewer camera inspections, make “sewer camera” a negative keyword. If you don’t service septic systems, make “septic” a negative keyword. Doing this will prevent clicks from irrelevant leads.
Local Service Ads appear at the top of Google’s search results above the typical PPC text ads and organic listings. LSAs are pay-per-lead, not pay-per-click, which makes them even more profitable. With LSAs, you only pay when a lead contacts you directly through your ad, either by calling you or messaging you. This is a much safer way to manage your ad spend and generate qualified leads. It’s also an easier way to capture bottom-of-the-funnel leads who need emergency plumbing services.
To set up these ads, head over to Google’s LSA page and click “get started.” You’ll be prompted to go through the setup process, which includes confirming your business eligibility. To complete the process, you’ll need your business license, general liability insurance proof, and at least one Google Business Profile with positive reviews. The system will then ask you to choose the zip codes or cities you serve, list the types of services you provide, and set your weekly budget. Once you submit the form and pass Google’s screening process, you’ll start showing up in results for searches related to your business.
Try to get as many positive reviews on your Google Business Profile as possible since businesses with better reviews tend to rank higher with Local Service Ads. Also, keep in mind that Google tracks your response times, and the faster you reply, the better placement you’ll get. Unlike PPC ads, you can request refunds from leads that aren’t relevant, like leads requesting the wrong services or who are outside your service area.
It’s important to take advantage of these ads because it’s an easy way to get your business listed at the top of search results pages when people search for terms like “plumber near me.” It’s easier than waiting months for SEO to kick in, and it will bring you immediate leads. People will see your reviews and your Google Guaranteed badge, which will boost your credibility.
Getting your business verified by Google will give you a green checkmark next to your business name in your Local Service Ads. It tells customers that Google has personally verified your business, you’ve passed a background check, your insurance has been verified, and Google Ads will back your services with up to $2,000 in reimbursement if a customer isn’t satisfied with your services.
Getting this badge can boost your visibility and credibility, which can get you more clicks, leads, and paying customers. It will also help you rank higher in the list of LSAs.
To get this green checkmark, you need to get approved for Google LSAs. Once you’re approved for LSAs, you’ll get the “Google Guaranteed” checkmark badge automatically. Just make sure you renew your insurance policy on time, maintain a high review rating, and keep responding to leads quickly. If you don’t maintain these things, Google Ads might remove your badge.
You can’t improve what you don’t track. Track your critical metrics, including call tracking, form tracking, and chat tracking. Run regular reports and check in with your ad campaign performance on a regular basis. It will take a little bit of time to gather enough data to make informed decisions, but the sooner you catch underperforming ads, the sooner you can make necessary changes.
It’s important to split test ads to see what elements drive the most conversions. Split testing, also called A/B testing, is where you run two nearly identical ads, but with one small difference between them. The difference could be a headline, colors, an image, the main copy, or the CTA. Once you run the ads long enough, take the winning ad and change one more element to test. Repeat this process by changing just one element at a time to see which version performs better. Use Google keyword planner to help navigate this. When done correctly, your clicks should increase over time.
Getting satisfied customers to review you is crucial, and as previously discussed, it can impact how your Local Service Ads show up. Reviews can also impact how you show up in the Local Pack. The more high-quality, genuine, recent reviews you have, the more likely you are to show up in search results. You’re also more likely to get clicks.
Positive reviews act as social proof that helps customers choose which business to call. You could have the best ad copy in the world, but if your competitor has 150 five-star reviews and you only have 6 reviews from 2019, customers will choose them over you.
It’s easy to get clicks, but getting real leads from search engines– the kind that book your plumbing services – takes work. For plumbers, a strong PPC strategy can make the difference between getting steady jobs or wasting cash. By targeting high intention search terms, targeting narrow service areas, and optimizing your ads, you can create high-performing ads that deliver real results without burning through your marketing budget.
Lead generation is critical for your plumbing business, but when done without a positive return on investment, it's foolish.
Whether you’re new to PPC ads, or you’re tired of wasting money on ads that don’t generate calls, we’d love to help you get real results. Our PPC experts specialize in helping local service businesses in the plumbing industry just like yours attract high intent plumbing leads, reduce wasted ad spend, and grow predictable revenue.
Contact us now for a free evaluation for your lead generation strategies, PPC campaigns and search engine optimization services – we’d love to help.
Pay-per-click (PPC) advertising is the lifeblood of modern digital marketing, a finely tuned machine designed to separate serious advertisers from those who enjoy setting their money on fire. At its core, PPC is about buying attention—whether it’s from Google Ads, Facebook (or should we say Meta?) Ads, LinkedIn’s overpriced clicks, or whatever ad network is currently promising “unprecedented results.” The trick, of course, is making sure that the attention you’re paying for actually turns into conversions, and not just a collection of clicks that lead nowhere.
This guide is for marketers who already know the basics and are ready to squeeze every last drop of ROI from their PPC campaigns. If you’re looking for a “Beginner’s Guide to Google Ads,” this isn’t it. But if you’re tired of watching your ad spend disappear into the void and want to start running PPC like a ruthless efficiency machine, read on.
There’s nothing quite as tragic as a PPC campaign with no clear objective. Running ads without goals is like throwing darts blindfolded—sure, you might hit the board occasionally, but mostly you’re just making a mess. Before you even think about setting up a campaign, define what success looks like. Are you driving leads? Pushing e-commerce sales? Increasing brand awareness (ugh, we’ll get to why that’s usually a waste of money later)? If your goal is just “more clicks,” congratulations—you’ve just fallen for the ultimate PPC scam: paying for traffic that doesn’t convert.
Every campaign should have a quantifiable, measurable outcome tied to business KPIs. That means actual revenue, leads that don’t ghost you, or at the very least, cost per acquisition (CPA) that doesn’t make your CFO break out in hives.
Google Ads is the undisputed king of PPC, but let’s not pretend it’s the only game in town. Depending on your audience and objectives, Meta Ads (Facebook and Instagram) can still be a goldmine—if you’re willing to put up with Meta’s ever-changing rules and the occasional algorithmic meltdown. LinkedIn Ads? Great if you enjoy paying $12 per click for someone who will never fill out your lead form.
And then there’s the rising trend of alternative ad platforms. TikTok Ads are fantastic if you’re targeting Gen Z and have the budget to experiment. Microsoft Ads (formerly Bing Ads) may be the underdog, but they offer cheaper CPCs and a surprising number of high-intent users. If you’re in e-commerce, don’t ignore Amazon Ads—they print money for sellers who get their targeting right.
Google would love for you to just use broad match keywords and let their algorithm “figure things out.” Spoiler alert: this is a terrible idea. Broad match means your ad could show up for searches so unrelated to your business that it’s practically performance art.
Instead, focus on high-intent keywords—the ones that indicate users are actually ready to buy. Long-tail keywords often convert better because they signal more specific intent. The goal is not just to drive traffic, but to attract users who already have their wallets half-open.
Want to know what works? Look at your competitors. Tools like SEMrush, SpyFu, and Google’s Auction Insights let you see what keywords they’re bidding on, which ones they’re ranking for, and—most importantly—where they’re burning money so you don’t have to.
If a competitor is bidding on specific high-intent keywords, that’s your signal to investigate. Either they’re seeing a positive ROI, or they’re making an expensive mistake that you can learn from. Either way, it’s free intelligence.
Great PPC ads aren’t just about catchy headlines—they’re about aligning with search intent, making a compelling offer, and convincing users that clicking your ad is the smartest decision they’ll make today. A well-optimized ad uses clear, persuasive language with a direct CTA, because vague CTAs like “Learn More” are about as useful as a screen door on a submarine.
A/B testing is non-negotiable. Your gut instinct is probably wrong, so test different headlines, CTAs, and descriptions to see what actually drives conversions. If you’re not actively testing, you’re just guessing.
You have about three seconds to convince visitors that they made the right choice clicking your ad. If your landing page loads slowly, looks like it was designed in 2008, or makes users hunt for the CTA, they’re gone.
Your landing page should have a singular focus: conversion. That means no distractions, no unnecessary links, and definitely no autoplay videos that scare people away. A strong landing page aligns perfectly with the ad copy, ensuring a seamless experience from click to conversion.
Nothing kills conversion rates faster than misleading ad-to-landing page alignment. If your ad promises “50% off running shoes” and your landing page is a generic homepage with no mention of that discount, expect a bounce rate that makes your campaign ROI cry. Every landing page should reinforce the ad message, use clear headlines, and make it painfully easy for users to complete the desired action. If a user has to think, they’re already gone.
If you’re still using manual CPC bidding across all campaigns, congratulations—you’re officially working harder, not smarter. Google’s automated bidding strategies have their place, but blindly trusting the algorithm is like handing your credit card to a stranger and hoping for the best.
Smart bidding, when done correctly, can optimize conversions and lower CPA, but it requires constant monitoring. Target ROAS (Return on Ad Spend) and Maximize Conversions can be effective, but only if you have historical data to feed the algorithm. If you’re running a new campaign, manual bidding still gives you more control.
Running PPC without proper tracking is like driving blindfolded and hoping you’ll reach your destination. You need to track not just clicks, but actual conversions, customer lifetime value (CLV), and return on ad spend (ROAS). Google Ads’ built-in tracking is decent, but combining it with Google Analytics, heatmaps, and call tracking will give you a full picture of what’s working.
Scaling PPC isn’t as simple as increasing your budget and watching conversions skyrocket. If you scale too fast, you’ll tank your ROI. The right approach is incremental scaling—gradually increasing spend while monitoring CPA and conversion rates. If your CPA starts climbing faster than your revenue, it’s time to reassess. And if your PPC manager insists that “everything is going great” while your ROAS tells a different story? It might be time for a new PPC manager.
