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SmartScout Glossary
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CPM (Cost-per-mil)

CPM (Cost-per-mil)

Amazon has a cost-per-mil program with which sellers can sell on the site. This means that they will take a certain percentage of your sales price each time a buyer purchases an item from you. You see, as an Amazon seller, this is how the site knows you are genuine and your items are of high quality.

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If your prices are too low or if you are not collecting any leads, then it might not be worth your while to participate in the cost-per-mil program. Think about it like this, there is a cost attached to being listed on Amazon. If you do not want to pay that cost, it may not be worth your while listing your goods for sale there. So think twice before deciding to participate in the cost-per-mil program with Amazon because it might have some hidden costs for sellers.

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What is Cost-per-Mil on Amazon? 

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Cost-per-Mil (CPM) is a metric that Amazon uses to measure the cost of advertising on its platform. CPM measures how much it costs you to display an ad on your page, as opposed to the amount of revenue you generate from click-throughs or sales.

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Sellers might put products in categories on Amazon by using keywords and other factors like the product's popularity. For example, a seller might place books about cooking in the cooking category if they're selling cookbooks. Additionally, sellers could group items together based on similar features or characteristics (e.g., all kitchen knives would be placed in the Kitchen Tools & Gadgets category).

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What Happens When Sellers Join the Cost-Per-Mil Program? 

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When you join the Amazon cost-per-mil program, you agree to provide Amazon with regular shipments of products in order to receive discounted rates. The rate that you receive is based on how much product you send and varies depending on which category your products fall into. You will also be required to fill out an inventory management form each month so that Amazon can keep track of what items are being shipped and when they're expected to arrive. If there are any discrepancies between what is reported by customers and inventory levels, then Amazon may contact or invoice you for delayed deliveries or overages.

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This program has several advantages for consumers: it allows them to stay up-to-date with current trends; saves money because products are delivered at a discounted price compared not purchased outright; helps sellers build long-term relationships with their customers by providing consistent service; keeps warehouses stocked with appropriate amounts of stock so that orders can be processed quickly.

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When Can You Join the Cost-Per-Mil Program? 

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If you are interested in joining the Amazon Cost-Per-Mil Program, you need to be a Prime member. This program allows members to earn money for each item that they purchase from Amazon.com. You can make 10 cents per eligible item that you buy, which is added to your normal shipping charges.

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The program is typically available for items sold by third-party sellers on Amazon, and it does not apply to certain categories or brands of products (for example, groceries). To qualify for the cost-per-mil bonus, all items must meet the following criteria:

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1) Be shipped via standard shipping and arrived within 2 days of being ordered; 
2) weigh no more than 4 pounds; 
3) be purchased using your primary account with a valid credit card; and 
4) have been inspected and are in original condition.

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Is the Amazon Cost Per Mil Program a Good Fit for My Business?

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The Amazon cost per mil (CPM) program is a great option for businesses that are looking to reach new customers and increase their sales. The CPM program allows you to pay Amazon to run ads on its website, which will then generate leads for your business. Once a lead has been generated, you can contact them directly or sell them an item through your online store. Benefits of the CPM program include increased visibility in search engine results pages (SERPs), more click-throughs from ads, and higher conversion rates due to better targeting of the ad campaigns. CPM clicks from ads are charged based on how many times they are clicked rather than how much time they remain viewable for less risk. 

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