Amazon PPC Bid Strategy: Why Suggested Bids Are a Trap

Amazon's suggested bids are designed for impression share, not profit. Here is how to calculate target CPC from product economics, conversion rate, and campaign intent.

Article summary

Amazon's suggested bids are designed for impression share, not profit. Here is how to calculate target CPC from product economics, conversion rate, and campaign intent.

About the author

A home goods brand I onboarded last year was setting every bid to the top of Amazon's suggested range. Their logic made sense on the surface: "Amazon knows the market better than we do, so we'll bid what they recommend."