How to optimize and set up Amazon advertising bidding strategies

Amazon Advertising is an important tool for increasing product visibility and increasing sales opportunities. However, one challenge many sellers face is how to properly set their Amazon Advertising auction bids. This article will combine the content of the two articles to introduce in detail how to optimize and set Amazon advertising auction bids.

Consider product gross profit

Gross profit refers to the difference between a product’s sales price and its manufacturing cost. To ensure a good return on advertising investment, it’s recommended to set your bid to around one-tenth of your product’s gross profit. Doing so can not only ensure that advertising costs are controlled within a reasonable range, but also achieve higher conversion rates and profitability. For example, if the seller wants to ensure that the advertisement itself is profitable, the bid can be set with reference to this ratio.

Refer to the system’s default recommended bidding range

The Amazon advertising system will give you a recommended bidding range based on your product listing weight coefficient and advertising data of similar products. Although this recommendation does not consider profit and conversion rate, as a new seller or a seller who has just started advertising, you can refer to the system’s default recommended bidding. In the initial stage, you can use the recommended bidding for delivery, and make appropriate adjustments and optimizations based on actual performance. After proposing a bid for a period of time, you can judge whether the price needs to be adjusted based on the data of each bid.

Balance between advertising budget and expected results

When setting up your Amazon ad bid, you need to balance your ad budget with your expected performance. Higher bid settings can result in better ad ranking and exposure, but may also result in higher ad costs. If you want to get advertising results quickly, you can increase the bid appropriately, but you need to ensure that the daily advertising budget is more than 20 times the bid to avoid premature stopping or restriction of advertising.

Use dynamic bidding and solid bidding

Amazon Advertising provides two forms of bidding settings, namely dynamic bidding and solid bidding. Dynamic bidding is divided into two adjustment methods: dynamic + only decrease and dynamic + increase or decrease. Dynamic bidding provides sellers with greater flexibility. For new sellers or sellers who are not familiar with the advertising rules, it is recommended to choose dynamic bidding with only reduced or solid bidding. This allows you to better control your advertising costs and observe the actual effectiveness of your advertising. For sellers who are familiar with advertising rules and have experience, they can choose to increase or decrease dynamic bidding to set up bids to further optimize advertising effects.

Conclusion

To sum up, correctly setting Amazon ad auction bids is the key to improving advertising performance and return on investment. Sellers should comprehensively consider product gross profit, system recommendations, budget and effect balance, and choose a bidding model that suits them. Remember, each product and market situation is different, so be flexible and make decisions based on actual data. Through continuous testing and optimization, you can finally find the bidding strategy that best suits you.