How do I set bids for Amazon PPC keywords?
Set bids for Amazon PPC keywords by starting with the maximum cost per click your target ACoS and expected conversion rate can support, then adjust each bid using actual campaign performance. A useful starting formula is selling price multiplied by target ACoS multiplied by conversion rate. Multiply the product's selling price by your target ACoS to estimate allowable advertising cost per order, then multiply that figure by the expected conversion rate. For garden pruning shears priced at £24 with a 25% target ACoS and a 10% conversion rate, the starting bid is £24 × 0.25 × 0.10, or £0.60. This is an estimate, not a promise that every £0.60 bid will be profitable. Your actual cost per click may be lower than the bid, conversion varies by keyword, and fees, returns, coupons, and tax affect the margin available for advertising. Use the formula to establish a rational ceiling before comparing it with auction conditions. Review each keyword after it has accumulated enough clicks and attributed sales. Raise the bid cautiously when a relevant keyword converts below target ACoS but receives limited impressions or weak placement. Lower the bid when ACoS is consistently above target, conversion is weaker than expected, or spend approaches the allowable cost per order without a sale. Avoid applying the same percentage change to every target. A keyword with repeated profitable orders may justify a 10% increase, while a keyword with expensive clicks and no sales may need a larger reduction or pause. Record the old bid, new bid, date, and reason so the next review measures a clear change. Do not copy suggested bids across every keyword, set all targets to one bid, or raise bids simply because impressions are low. Low delivery can also result from poor relevance, a weak listing, limited search demand, budget constraints, or strong competition. Do not edit bids every day when little new data has arrived. Judge bids alongside placement, search terms, conversion rate, price, stock, reviews, and profit. The best bid is not the one that wins the most auctions, but the one that attracts useful traffic at an acceptable cost.
Set Amazon PPC keyword bids from your target ACoS, conversion rate, and selling price, then adjust them using actual performance data.