Amazon sponsored listings can help sellers in several ways:
It enhances the visibility and discoverability of your products through keyword targeting to make products appear in relevant searches. Your products will appear in front of your potential customers who are looking for similar products.
It helps spark interest in new products. It cannot be easy to get the right interest and traction for new products. Sponsored products on Amazon will help you provide awareness about your new product by making them appear in front of the customers.
You pay for clicks your product gets and not for impressions. The amazon sponsored listing has a unique feature to charge sellers only when the customers click on the product and not when the product appears on the results page.