I really don't get it. Do Amazon Affiliates make a lot of money when they are competing with Amazon themselves in their own niches? Amazon will always be ranked ahead of their affiliates.
I'm running an Adwords campaign right now where my ad is way more relevant than Amazons, yet they dominate the top spot because they can afford it. Will clicking on Amazon's ad take the customer to what they're looking for? No. They'll end up having to do a new search at Amazon. So it's still possible to compete if your operation is more relevant and saves the customer time. And that's where knowing and caring about the niche comes in.
umanohone: Amazon does not allow direct adwords campaigns any more so I guess you are sending the traffic to your site first right? and yes you can compete with amazon in any niche if you choose the right keywords and make good SEO effords
I heard that there're most affilaters quit from Amazon after Amazon.com don't allow send traffic from PPC directly. However direct traffic from PPC to Amazon.co.uk can usable.
@pixads: Yes, my site first, then Amazon (if they make it that far). My point is, clicking on my ad saves the user at least one click and some typing. Whereas Amazons ad links to something in the general vicinity of what the user may be looking for, but not quite.
Yes, make more money but not compete with Amazon. We help Amazon using our site/astore for certain niche that dominated by other seller. It is depend what kind of product that Amazon did not rank well and don't tell me "Kindle". Use Google.
On some of my keywords I`m ranked above Amazon. I`ve never sent visitors direct to Amazon via PPC, just straight to one of my sites.
I don't look at it like I am competing against Amazon. I feel I am a value add reseller. I have niche products that are easier to find than the one on Amazons site. I too use Adwords campaigns from time to time.