How Does Amazon PPC Bidding Work? A Beginner’s Guide

PPC (Pay-Per-Click) is an advertising system in which sellers pay for ad placements. To appear in search results, you have to bid on keywords. Amazon Seller Experts use PPC bidding strategies to maximize visibility and sales. But how does the Amazon PPC bidding process actually work? Let’s break it down. 

What is Amazon PPC Bidding? 

It’s like an auction, (if I can say so), Amazon PPC bidding. When customers search for a product, you compete alongside other sellers for your ad to appear. The highest bid does not always prevail. Instead Amazon looks at your bid, ad relevance and conversions.

Types of Bidding Strategies

Amazon offers three main bidding strategies:

1. Dynamic Bids – Down Only
   • Amazon lowers your bid if your ad is less likely to convert.
   • Best for budget-conscious sellers who don’t want to overspend.
2. Dynamic Bids – Up and Down
   • Amazon increases or decreases your bid based on the chances of conversion.
   • Great for highly competitive niches where you need to win key placements.
3. Fixed Bids
   • Your bid stays the same, no matter what.
   • Ideal if you want full control over your spending.

How to Set Up an Amazon PPC Bid?

1. Choose Your Campaign Type:
   • Sponsored Products, Sponsored Brands, or Sponsored Display.
2. Select Your Keywords:
   • Use Amazon’s auto-suggestions or tools like Helium 10.
3. Decide on Your Bidding Strategy:
   • Pick from Dynamic Down, Dynamic Up & Down, or Fixed.
4. Set Your Daily Budget:
   • Start small, around $10-$20/day, and scale as needed.
5. Monitor and Adjust:
   • Check performance and tweak bids based on results.

How Does Amazon Decide Who Wins the Bid?

Winning a bid isn’t just about offering the highest amount. Amazon considers:

• Your Bid Amount – Higher bids increase the chances of winning.
• Ad Relevance – If your product matches the search intent, you have an edge.
• CTR (Click-Through Rate) – More clicks = better ranking.
• Conversion Rate – If your ad leads to sales, Amazon prefers showing it.

How to Optimize Your Amazon PPC Bidding?

1. Start with Automatic Campaigns
   • Let Amazon find the best keywords for you.
   • Analyze data, then create manual campaigns based on performance.
2. Use Bid Adjustments for Placements
   • Amazon lets you increase bids for top-of-search positions.
   • Adjust bids for product pages and rest-of-search placements.
3. Optimize Your Keywords
   • Remove low-performing keywords (negative keywords help cut wasted spend).
   • Focus on high-converting, long-tail keywords.
4. Monitor Your ACoS (Advertising Cost of Sale)
   • Keep your ACoS low (aim for 20-30%) by adjusting bids and focusing on profitable keywords.
5. A/B Test Different Bids
   • Test different bid amounts to find the sweet spot for conversions and cost control.

Common Amazon PPC Bidding Mistakes to Avoid

• Bidding Too High Too Soon – Start low, test, then increase.
• Ignoring Negative Keywords – Block keywords that waste money.
• Not Checking Performance Metrics – Track CTR, ACoS, and conversions.
• Using Only Automatic Bidding – Manual campaigns give better control.

Promoting Supply Experts Through Amazon PPC

If you’re running ads for a brand, you can use Amazon PPC to gain visibility. Here’s how:

• Run Sponsored Brand Ads featuring Supply Experts to boost awareness.
• Target competitor keywords to attract potential buyers.
• Use manual campaigns to bid on high-converting terms related to supply chain and procurement.
• Leverage top-of-search bid adjustments to appear at the top of results.
• Analyze your ACoS and tweak bids for cost-effective conversions.

With the right Amazon PPC strategy, Channel Supply Experts can increase visibility, attract buyers, and boost conversions on Amazon.

Final Thoughts

Amazon PPC bidding isn’t just about spending more money. It’s about smart targeting, testing, and refining your approach. Start small, analyze data, and adjust bids based on performance. If done right, Amazon PPC can boost your sales and increase your visibility without breaking your budget. 

Looking for expert help? Check out Channel Supply Experts’ Amazon Advertising Management Service to scale your campaigns effectively.