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We use them but extremely targeted from our other site.
We have about 850 products and list 5 though planning a few more.
We only list ones now that are 'unique' meaning no one else sells them there (or anywhere else in this case) so they show up on search just like Amazon products too instead of just in the ads area. That may not be your option if you don't make any of your products. We do not spend a lot.
PPC can kill you if not targeted even when you put a limit it's wasted $ if you just get lookers.
Advice:
Unique products get top billing.
Do not submit your entire catalog!! Do a manual targeted feed.
Shop your keywords there and find some weak areas or target your really strong points.
Start with 5-10/whatever your comfort level of best closers/sellers of yours in those weak categories/strong areas so you have a good chance of a sale and to test the waters.
Hopefully they will view other products (already paid for) while there.
Don't submit anything under $30 to absorb multiple click cost. The higher the better and may reduce your competition and increase conversions.
Add/subtract as needed.
Hope this helps, I'm not a expert but stayed in a holiday inn express once and spend very little on Amazon PPC. Conversion is fairly low but most don't just bounce.
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