Amazon PPC bid management is a core part of running profitable Sponsored Products and other ad campaigns. Many sellers struggle with rising costs per click (CPC) or high Advertising Cost of Sale (ACoS) because of avoidable errors in how they handle bids. Understanding these common mistakes can help you maintain better control over spend and improve performance.
In this guide, we explain frequent bid-related pitfalls and practical steps to fix them. These insights draw from Amazon’s official bidding options and real-world optimization patterns.
Effective bid management balances visibility with profitability. Amazon uses a second-price auction system, where you pay just above the next highest bidder (plus a small increment) for clicks. Poor bids lead to wasted budget on low-converting traffic or missed opportunities from underbidding.
Sellers often set bids without strategy, leading to volatile ACoS. Proper management involves regular reviews, data-driven adjustments, and alignment with goals like target ROAS or ACoS.
Amazon provides suggested bid ranges based on recent winning bids for similar keywords. While helpful for starting, these suggestions often inflate costs to favor higher spend.
Many sellers use them as fixed values without testing. This results in overpaying for clicks, especially on competitive terms.
To avoid this, calculate your starting bid using your break-even point. Divide your target ACoS by your average conversion rate and average order value to find a sustainable CPC. Start lower than suggested for new keywords and adjust upward based on performance data.
Fixed bids keep your exact amount without adjustments. This can generate more impressions but often fewer conversions in dynamic markets where competition fluctuates.
Amazon offers dynamic options: “down only” (reduces bids for low-conversion likelihood) or “up and down” (adjusts both ways based on conversion probability). Fixed bids miss these real-time optimizations, leading to inefficient spend.
Switch to dynamic bids – down only for budget-conscious campaigns or up and down for growth-focused ones. Monitor placement reports to see how adjustments impact top-of-search or product page performance.
Amazon allows bid multipliers for placements like top of search (up to 900% in some cases). Many overlook these, treating all impressions equally.
High-conversion placements deserve higher bids, while others may waste money. Neglecting adjustments means missing out on premium spots or overspending on lower-value ones.
Review placement reports regularly. Increase bids 20-50% for top-of-search if data shows strong ROAS there. Use negative adjustments for underperforming areas like rest-of-search if needed.
Bids apply to matched search terms, but irrelevant queries can trigger ads. Failing to add negatives from search term reports lets bids go to non-converting traffic.
Common issue: Broad or auto campaigns run without negatives, inflating CPC and ACoS.
Download search term reports weekly. Add poor performers as negatives at the ad group or campaign level. This refines traffic without lowering base bids unnecessarily.
Many set initial bids and rarely adjust. Amazon’s algorithm changes, competition shifts, and seasonality affect performance.
Bids need ongoing tweaks based on metrics like impressions, clicks, CPC, and conversions. Ignoring this leads to drifting ACoS.
Schedule weekly reviews. Use bulk operations for bid changes across keywords. Tools can automate rules, but manual oversight ensures alignment with business goals.
Start with clear targets: Decide on target ACoS or ROAS per campaign. Use Amazon’s rule-based bidding if available for guardrails.
Test small: Run experiments with different strategies on similar ASINs. Track results over 2-4 weeks before scaling.
Combine automation with oversight. Dynamic bidding handles real-time, but periodic human review catches broader trends.
Explore Amazon bid optimization tools that simplify adjustments.
What is the best bidding strategy for Amazon PPC beginners?
Dynamic bids – down only is often safest for new advertisers. It reduces bids for less likely conversions while keeping control over spend.
How often should I adjust Amazon bids?
Review and adjust weekly or bi-weekly. Use search term and placement reports to guide changes. More frequent tweaks help in competitive categories.
Do higher bids always mean more sales?
No. Higher bids increase impressions but can raise CPC without proportional conversions. Focus on profitability metrics like ACoS over raw visibility.
Can bid management tools replace manual work?
Tools automate routine adjustments and rules, saving time. However, combine them with strategy reviews to avoid blind reliance.
Why does my ACoS rise even after lowering bids?
Lowering bids reduces impressions and clicks, often from higher-quality traffic. This can increase ACoS if remaining clicks convert poorly. Test gradual changes.
Connect your Amazon account or upload a bulk file. BIDVENTOR's AI will optimize your bids, cut wasted spend, and boost ROAS.
The BidVentor Editorial Team is a dedicated collective of Amazon PPC and paid advertising experts. We empower brands to unlock scalable growth through data-driven strategies, precision campaign management, and a relentless focus on ROI. Our mission is to transform your ad spend into your most profitable channel.
