How to Bid on Amazon PPC? Beginners Guide 
Hi everyone, I hope you are all safe and well at home. We will be discussing something really exciting that has a high impact on your Amazon sales and revenue. We will be discussing PPC bidding strategies. It’s going to be super informative, so buckle up.
We have more than a hundred clients benefiting from our PPC managed services, and a majority of them are six-figure sellers. So I will be sharing some of the most effective PPC Bidding strategies out there with you today. The topics that we will be covering in today’s webinar would be different types of bidding strategies on Amazon.
- Importance of Strategizing PPC bidding
- Types of bidding strategies on Amazon
- The fast & sloppy method
- The inch-up method
- Bid Wise
- Up & Down
- Down only
- Placement Wise
- Top of Search
- Product pages
- Rest of Search
Importance of Strategizing PPC Bidding
Why is it important to have the right PPC bidding strategies in place? We are all here to make more money, right. So we want to spend as little money as possible to make the most sales. That’s what we’ll be discussing today how to spend smartly so that we get five or ten times more of the returns.
The first two strategies are quite common. They’re commonly used and are very well known, and they are typically used for launching.
General Amazon Bidding Strategies
The Fast and sloppy method
In this method, you start with a high bid, maybe even overshoot from where we actually need to be, then cut down on the bids according to your ad spends.
In this method, for example, you could be starting with $5 or $6 on day 1, and then you reduce it to $4, you study how many impressions and clicks you are getting and then reduce to $3, and then you find that this ACoS meets your target. so this is where you’re going to start, and this is your perfect fit.
In this method, you go from the smallest bid that gives the most information, then gradually increases the bid amount until you reach your target.
Inch up method is quite the opposite, where you start very cautiously. If your default bid is about one dollar, you bid slightly higher or stick to one dollar. The second day you bid slightly higher or, like let’s say, 10 cents more and then see how it impacts your impressions; how is it impacting your clicks and then study the impact carefully over a period of time to find the right bid for your product.
There’s one drawback with both of these strategies: Amazon signals attribution cycle. You need to wait for at least about a week a couple of weeks before you change the bids, and that means you need more time and more money to experiment.
Amazon has released other varying strategies that give you more control over your conversions, and your ad spend.
We’re going to be discussing two sets of strategies with you today. The first set of strategies will give you more control over conversions, and the second set of strategies will give you more control over placements.
The first strategy has three are different types of bidding strategies one is up and down, the second is down only, and the third is fixed.
Amazon Dynamic Bidding Strategy
This video explains how to align your Amazon dynamic bidding strategies with your goals and influence your PPC campaigns. And, we give you insights into the different strategies that you can adopt for bidding on your PPC campaign.
a. Up & down
If you opt for this strategy, you’re literally giving amazon permission to bring your bid up & down or increase your bid or decrease your bid based on the likelihood of conversions.
b. Down Only
If you opt for this strategy, you’re giving Amazon the permission to decrease your bid based on the likelihood of conversion.
If you select a fixed bid, Amazon will not touch your bids at all.
Using this, you can pick the places where your product ad can be displayed.
a. Top of Search
Sponsored Ads will be placed on the top of the Amazon SERP Results Page.
b. Product pages
Product pages refers to the on the product detail page, and placements outside the SERP results.
c. Rest of Search
All other placements in the Amazon search results page.
There are a couple of other things for you to keep in mind:
Target ACoS is how much percentage of the product price you are willing to spend on advertising. This means you need to be aware of your profit percentage and how much you are willing to spend on advertising.
Maximum bid is the maximum CPC you are willing to spend when someone clicks on your ad.
So, in this below example, we have taken 25%
Product Price – $20
Clicks required to get 1 sale – 10
Target ACoS – 25%
Amount that can be spent advertising – $5
5/10 = $0.50
Maximum bid per click – $0.50
PPC Bid Optimization – 5 Key Strategies
Knowing the right bid optimization strategy can not only make your campaign successful. But also can reduce your advertising costs.
With that said, let us give you 5 crucial Amazon PPC bid optimization strategies!
- Have a look at your bid history and analyze the data to make decisions
- Always pay attention to your bids and update them at regular intervals
- Instead of aiming for the lowest ACoS, aim for the ACoS that gives you the most profit
- Bidding in your branded terms will help you to dominate your SERP Results
- Start with the smallest bid & gradually increase the bid amount until you reach your target
Keep these bidding strategies in mind to supercharge your PPC campaigns.
Tips to Bring down ACoS
- You can reduce the default bid to accommodate the dynamic bidding
- you can choose to appear only in certain spots such as the top of .search by reducing the default bid significantly and choose fixed/up & down + 80% or more for placement.
Do check out the SellerApp PPC tool. It gives you insights it helps you take immediate real-time actions on your campaigns to optimize. It gives you super convenient to use and gives you ton data, making your life really easy.
so we crunched the numbers, and we found out that there has been a
- 23% increase in conversion rate for our clients who use PPC analyzer
- 10% decrease in ACoS
- 74% can be an improvement probability
Some of the other advantages of using a PPC analyzer would be seamless Amazon integration, flexible data filtering, advanced data control, and expert support.