Essential tricks for sellers: Tips and tricks for bidding on Amazon ads

Essential tricks for sellers: Tips and tricks for bidding on Amazon ads



When placing Amazon ads, sellers need to learn how to bid. Bidding is a basic course for Amazon sellers to bid on keywords, which affects the ranking and display position of the seller's ads on search results. Different display positions have different cost per click (CPC).


A high bid can increase the conversion rate. Although the advertising expenditure increases, the higher the conversion rate, the lower the ACOS.

Bidding patterns that sellers should avoid


1. Ignore optimization bidding

If sellers want to gain benefits from bidding, they must optimize their bids. Many sellers ignore optimizing their bids and keep all ad bids the same without changing the bids.


2. Setting bids by guesswork

When setting advertising bids, some sellers make bids based on their feelings, thinking that their sixth sense is very accurate. However, advertising bidding is not metaphysics and needs to be supported by data.


3. Bidding recklessly

Bidding recklessly can cause your ads to cost too much. Just like guessing, bidding recklessly can hurt your ads’ performance. Don’t make drastic changes to your bids without evidence, unless you have sufficient data.


4. Excessive pursuit of low ACOS

When new sellers discuss the advertising goals they hope to achieve, low ACOS is one of the goals. Although ACOS of 1% looks good, you must have a lot of advertising budget left, so sellers should not be stingy with their bids.


Low ACOS does not mean high profit. You should find the ACOS that maximizes traffic and exposure.

Bidding optimization strategy


After talking about the four bidding misunderstandings that sellers are prone to fall into, let’s talk about how to optimize your bidding strategy.


The following are some optimization strategies:
1. Bid based on historical records


Data can help you succeed. All you have to do is find the perfect CPC (cost per click) by calculating your revenue per click. You can calculate your revenue per click by calculating the total sales you get for a keyword and then dividing it by the total number of clicks for that keyword.


Calculate the revenue per click for the past 30 days, 60 days, and 90 days, understand the seasonal factors that affect the revenue per click, and the long-term effects of keywords.


Once you’ve calculated your revenue per click, divide it by your target ACOS. The result is your CPC, which is your bid.


Another simple trick is to divide your target ACOS by your current ACOS, and then multiply that ratio by your current CPC to get a CPC that meets your target.
2. Set expected conversion rates


If there is no relevant advertising data for a product, the seller cannot calculate the bid based on historical records. However, the seller can set an expected conversion rate.
Expected conversion rate
Sales price
Target ACOS


The expected conversion rate is how many clicks are needed to convert a sale. The average conversion rate on Amazon is around 10%, so sellers can use 10% as your expected conversion rate.
The selling price is the product price, and the target ACOS is the seller’s ideal advertising cost.


For example, if the expected conversion rate is 8%, the product price is US$29.99, and the target ACOS is 30%, then the ad bid = product price * target ACOS * expected conversion rate.
The final ideal bid is $0.72.


If the seller finds that the keyword has 15 clicks but no sales, then the expected conversion rate may not be 10%. It is necessary to adjust the expected conversion rate and then adjust the bid.

The core of bidding optimization

Whether it’s predicting metrics or adjusting bids, sellers need data to use before making a decision .

Don’t use intuition as the basis for bidding. All ideal bidding models rely on the calculation of account data . Simple and fast calculation methods can make wise decisions.


By introducing the above methods, I hope to help sellers calculate the perfect advertising bid.



Recommended Reading


Autumn product selection guide: These products will become hot sellers
The first step to boost sales during peak season: 2019 Halloween product selection guide
Under the Sino-US trade war, sellers suffered three major blows



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