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Best Amazon Bidding Strategy

Which is the Best Amazon Bidding Strategy?

Best Amazon’s bidding strategy is an art, and Amazon is the world’s largest e-commerce website. As a result, it’s always dynamic and competitive, with more than 300 million active customers.

The first question is: What is the best Amazon bidding strategy? That’s why we provide a step-by-step guide that helps you find the best Amazon bidding strategies.

There are two types of Amazon bidding strategies:

Dynamic Bidding Strategy

Fixed Bidding Strategy

Dynamic or Fixed Amazon Bidding Strategy

Dynamic or Fixed Amazon Bidding Strategy

Now you understand the essential step of creating your Amazon bidding strategy. So, it is time to decide what type of strategies you use.

For instance, do You have a low budget? Do you want to take complete control over your bids? Do you allow Amazon to decide how much you spend on your bids?

Dynamic Amazon Bidding Strategy (Down Only)

What It Is: Amazon will pay less than your bid price by up to 100%. If you want less, convert your ad.

When to Use: It was Amazon’s previous default option. In our opinion, It is the best profit-driven strategy. In addition, it helps you in conserving money from ads.

Dynamic Amazon Bidding Strategy (Up and Down)

Dynamic Amazon Bidding Strategy (Up and Down)

What It Is: When the conversion is high, Amazon increases your bid up to 100% but decreases it when it is not.

When to Use It: When you use this strategy and still maintain a profitable approach, it is good to tend your bid in the market. So, this is more flexible than other options for you.

However, keep an eye on your expenditures. And make sure you are okay spending 100 percent more for a click than you bid.

Fixed Bids

What It Is: If your bid is the default bid and any adjustment you make. It cannot be changed based on the likelihood of conversion.

When to Use: We don’t advise you to select this option. You can also overpay for clicks because Amazon applies this to every place with the possible likelihood of conversion.

The Basics of Amazon Bidding Strategy

The Basics of Amazon Bidding Strategy

Profit-Driven Bidding:

It is to say; Amazon bidding strategy issues are based on one central concept: profit. Therefore, the most critical component in Amazon campaign optimization is profit-driven management.

The profit is excess income after all other expenditures, including ad spending.


To fully comprehend the implications of your bidding selections. However, you must first understand the costs spent when those bids result in a sale.

The cost of commodities, or replacing the sold things, is generally the most expensive. To make bidding selections easier, provide this cost at the ad group level.


Keep in mind the commission. Typically, the Costs are between 15 and 20% of product sales. But, they can be as high as 45 percent.

That may quickly add expensively, and some products may not be worth advertising at all if all of these expenses are included.

Best Amazon Bidding Strategy

Advertising Cost of Sale (ACoS)

Although it is not the best, the most systematic approach to assessing Amazon advertising performance is ACoS.

ACoS ignores the expenses of generating a sale, which is the only method to understand. The impact of your advertising on your firm. ACOS is a lousy profit indicator. With a decreased ACOS, profits can rise.

Automatic Targeting

On Amazon, automatic targeting means that Amazon, for the most part, decides. Where and to whom your product advertising is broadcast.

Advertisers can modify bids per ad group. But, there is no way to identify which product or targeting is the most successful.

Suppose numerous items are in the group. As a result, we recommend keeping the number of items per ad group to a minimum—either one per ad group or in small, tightly connected sectors.

Manual Targeting

Manual Targeting

Advertisers have more control over campaign targeting, as well as bids and spending, to a degree.

You have the option of bidding on ad groups or keywords. We suggest bidding on keywords since it provides the most granularity.

When should adjustments be made?

Your campaign and click volume will significantly impact the response when you have sufficient facts to make an informed judgment.

You can make changes when you have enough facts to make an intellectual judgment.

Remember that Amazon’s reporting lagtime is often 2 to 3 days. Moreover, keep that in mind when deciding how regularly to make revisions.

Amazon Bidding Strategy By Placement 

Amazon Bidding Strategy By Placement

You may also specify particular places to bid on if you use Dynamic Bidding:

 Top of Page and Product Page. The default is setting targets for any other ad placements on the rest of the pages.

On top of each of these changes, you may apply an adjustment. You may, for example, select Top of Page and apply a 50% change. If your offer was $1.00, you could only raise it to $1.50 to win the top spot on the page.

Top of Page

The top of the page is the first row, on the first page of results. It is the most competitive advertising spot on Amazon – and the price matches.

Product Page

If you choose this placement, your products can appear in the “Sponsored Products Related to this Item” on the product and add-to-cart pages.

Suggested Bids for Keywords

Amazon advertising also provides suggested bids for various keywords and ad groupings. If you intend to figure out how much it costs to win a bid for a given term.

The suggested bid might give you an indication of what your rivals are spending.

Keep in mind that the suggested price might be relatively high at times. So do not blindly follow the Amazon-advised bid if it does not make sense for your business goals.

Special Bidding Situations

These are beyond the capabilities of automated systems, including Amazon’s automatic bidding. As a result, you will need to spend more time maintaining your account—daily variations to plan for holidays and special deals.

For Example, Black Friday, Cyber Monday, and Prime Day, here’s how to create a successful Amazon campaign bidding plan.

Black Friday and Cyber Monday

Black Friday and Cyber Monday

Examine your statistics from the previous year. Which goods did you find to be the most successful?

Is there a particular category that performs well at this time of year? Then, prepare to spend money on things that have performed effectively in the past.

 Remember that extra competition means higher expenses. So, you may need to boost some bids if your firm is particularly seasonal over the holidays.

Prime Day

Prime Day

Only for Sponsored Products, make sure your budgets and bids are optimized for maximum impressions, clicks, and conversions. In addition, have a specific aim in mind when executing Sponsored Brand initiatives, such as new customer acquisition.

Finally, if you conduct display advertising, double-check that your audiences are set up appropriately to target the right people.

How Many Types of Amazon Supplier Negotiation Strategy?

There are two types of Amazon supplier negotiation strategies.



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