The Ultimate Amazon Ads Bidding Strategy (& Top Amazon Bidding Tools) [2023

You can think of bidding on Amazon as attending an auction: it’s all about being the highest bidder. When you’re bidding on the biggest e-commerce platform in the world, being the highest bidder sounds almost impossible. 

Amazon bidding is a process through which sellers can compete to display their products prominently on Amazon’s search results and product detail pages. This system allows sellers to bid on specific keywords relevant to their products, with the highest bidder winning the right to display their product when a customer searches for those keywords.

To help you make the right choice when it comes to bidding, we’ve broken down what Amazon bidding is, tips and tricks, and some bidding tools you can use. 

Types of Bidding for Amazon Ads

One important component of a campaign with Amazon Ads is your bidding type. This determines how much you’re willing to pay for each click on your ad and which ads are more likely to appear in search results. Several bidding strategies are available, each with its own pros and cons.

Dynamic Bids Down Only

In down-only dynamic bids, sellers can set a target for their desired cost-per-click (CPC). Amazon’s algorithm will automatically adjust the bid for each keyword auction in real-time, but only by decreasing it. Before deciding, the algorithm will consider each auction’s ideal bid, relevance, ad quality, and competition.

Choose “Down Only” bidding if you’re testing ads, attempting to reduce costs, or hoping to maximize profits.

Dynamic Bids Up & Down

Dynamic “Up and Down” bidding means that Amazon will raise your bid no more than 100% if you’ve got a good chance of making a sale. Your bid is reduced if you don’t have enough conversion. 

Use “Up and Down” bidding if you’re looking to boost your sales, maximize profit from a high-performing campaign, or try to win ad placements for keywords. 

DO NOT: 

Do not run an “Up and Down” campaign to compare results with an already existing “Down Only” campaign. They’re two different types of bidding strategies, and the older results have more data. 

Also, don’t run an “Up and Down” campaign to compete against a “Down Only” campaign. They are competing for the same results, which won’t provide new insights. 

Fixed Bids

Amazon will not change a fixed bid, as it’s a flat PPC rate. No matter what, this bit will not change based on conversions and will be the default, despite any adjustments you’ve made. 

Advertisers can use this method to capitalize on product launches for new niches because Amazon is still collecting data on them. 

While this may sound like a smart idea, this bid often proves to be ineffective. 

Fixed bids are mainly for increasing your impression rather than your conversions and sales. The only plus side to this strategy is that Amazon cannot touch your bid once it’s set. If you see that your bid is underperforming, you’ll have to go in and change the bid yourself. 

Using fixed bids could also potentially result in excessive spending on clicks and impressions, as Amazon tends to use your bid for nearly all placements without considering conversion rates. 

Rule-based Bidding

Rule-based bidding removes all the guessing that comes with adjusting bids and helps you meet your marketing goals. For any campaign that has been going on for at least 30 days, you can set a rule with a return on ad spend (ROAS) limit, and Amazon may adjust your starting bids up or down to improve conversions while still honoring your ROAS limit.

However, Amazon does not guarantee that your campaigns meet your ROAS goal. However, if the campaign isn’t meeting this goal and the ROAS drops over 21 days, the rule will be turned off, and your previous bidding strategy and target bids will be activated.

What are Amazon Bidding Tools?

Amazon bidding tools are software programs or platforms that help Amazon sellers manage their advertising campaigns on the Amazon platform. These tools provide advanced features and analytics that allow sellers to bid on keywords, set budgets, and keep track of the performance of their ads. Automated bidding strategies, keyword suggestions, and bid optimization recommendations are offered to increase the visibility and profitability of sellers’ products. 

By using these tools, sellers can save time and effort by automating the bidding process and making informed decisions to gain higher sales and improved ROI.

Features to Look For in Amazon Bidders

The right software can help maximize your profits and minimize time spent managing your business. Knowing the key features to look for in Amazon bidder software will help you make the best choice for your business.

Security & Safety

When it comes to bidding and your ad campaign, you need to make sure that your data is private. Competitors might try to leverage insights from your data to one up in the bidding process. One way to do this is to use an Amazon bidder tool to help you secure your data and assets from malicious actors or competitors. 

With a secure Amazon bidder tool, you can rest assured that your data won’t be transferred to anyone else, allowing you an edge over your competitors in the bidding process.

Fast Connection

Bidding on Amazon can be tricky, but having the right tools can make all the difference in whether or not you get your desired item. A fast Amazon bidding tool can be a defining factor in the success of your bid, as it allows you to make the necessary adjustments to your bid quickly and efficiently. With the right software, you can stay one step ahead of the competition and increase your chances of winning the bid. 

Remember, the concept of Amazon bidding is similar to auctions. You have to act fast to get what you want. 

Campaign Bandwidth

Your Amazon bidding tool must handle multiple campaigns, especially if you have a larger Amazon storefront with multiple products. You need software that can take care of all your listings and then some as you continue to grow your store. 

Cost

Make sure you’re not draining your wallet when it comes to using bidder software. You need to use software that works for your company’s budget.

If you’re looking for bidding software that optimizes your ad spend at a great price, look no further than Sellesta! 

Sellesta’s bidder is compatible with both Amazon and Google Ads and has been optimized to increase your sales and optimize your bids based on the Advertising Cost of Sale (ACoS).

You can also use Sellesta to boost your visibility and get your products to the top of the SERP on Amazon. Your bid will be adjusted based on your likelihood of making a sale, your relevance, ad quality, and competitors, depending on your bidding. 

Sellesta can help you create amazing, Amazon SEO-optimized product listings and gather market insights on your competitors, consumers, and any newcomers selling similar products. 

Sellesta also allows you to: 

• Perform a review and competitive analyses using our key tags to see what your consumer thinks about you and your competitors’ products. 
• Take advantage of AI and get optimized product listings with AI-generated copy. 
• Generate multiples at one time. 
• Keyword research and generation
• Collect and analyze data from over a million websites and social media channels
• Know what categories to avoid when selling on Amazon 
• Get notified when your competitors are out of stock
• Track keywords daily

Product listings without Sellesta: 

Product listing optimized using Sellesta’s AI:

Customization

Creating successful advertising campaigns for your business can be a difficult process. It’s important to be able to tailor your campaigns and bids to your specific business needs to maximize their effectiveness. 

Fortunately, with the right software, you can customize your campaigns and bids to guarantee that you’re reaching the right audience and making the most of your budget. A good bidding software should make adjusting your campaigns and bids easy to fit your business’s needs and provide additional options to set defaults and pick and choose your bid pricing and type. 

Amazon Bidding Tools

Here are a few bidding tools that can help you up your sales and conversion and increase your visibility on Amazon.

1. Amazon’s Bidder

Amazon uses the Second-Price auction model that rewards the highest bidder. Users can use any of the bidding strategy types offered by Amazon and the “Adjust Bids by Placement” feature that shows ads in categories: top-of-search, resort-of-search, and product pages. 

This helps users bid more competitively and determine where the ad performance is the most successful. However, there are some flaws with Amazon’s bidder tool. 

Using Amazon’s bidder tool doesn’t provide insights and keep you updated on trends the way other tools like Sellesta do. You won’t be able to monitor your competitors either. Amazon will suggest bids without factoring in your competitors and popular trends and keywords, putting you at a disadvantage. 

2. Sellesta Amazon Bidder

Sellesta also offers an ad bidder, which is compatible with both Amazon and Google Ads. Our platform has created an algorithm that can increase your sales and optimize your bids based on the ACoS. All you have to do is provide the following: 

• Your ASINs
• Target ACoS
• Permission to adjust your campaign

Sellesta will find the right keywords and set up effective bids. We’ll also: 

• Optimize ad campaigns by using ML-based auto bidding and keyword selection.
• Provide an analytics team to finetune bids and campaigns
• Use AI to make the necessary adjustments based on keyword performance
• Leverage insights from competitors to help make more data-driven decisions
• Offer customizable dashboards with ad insights

Improve your Amazon Ads Bidding

Amazon ads are a powerful tool to drive traffic to your products and increase Amazon sales. By understanding the bidding system and making necessary changes, you can optimize your bids and maximize the return on your ad spend. 

If you want to change how you’ve been marketing completely, you’ve come to the right place!

Sellesta.com is an AI-powered software dedicated to helping you optimize your product listings with the highest-performing keywords and search terms, monitor the competition, and more to help you maximize your ROI.