This episode highlights a critical, often overlooked detail for Amazon sellers: Amazon's own recommendations for placement bid adjustments can significantly impact ad performance. Ecommerce operators should be wary of blindly following these suggestions without understanding the potential for inflated costs and diminished returns, especially as these recommendations can be as high as 70%.
Key takeaways
Do not blindly accept Amazon's recommended bid adjustments; always analyze them critically.
High recommended bid adjustments (e.g., 70%) can drastically increase ad spend without guaranteeing proportional returns.
Implement a strategy for regularly reviewing and adjusting Amazon ad bids based on your specific performance metrics, not just Amazon's suggestions.
Focus on understanding the underlying reasons for bid recommendations to avoid overspending on placements that don't convert efficiently.
Consider the potential impact of exaggerated bid adjustments on overall Advertising Cost of Sale (ACoS) and profitability.
It's true that placement adjustments help improve conversion and sales volume, but the output depends on a number of factors that we discuss in this episode. The right adjustment % would vary for products and categories.5 Amazon ad lessons. 2 minutes read. 1 weekly email.https://georges.blog/subscribeFind every wrong with your Amazon ads in under 72 hours.https://georges.blog/auditRESOURCESRead our News Feed.Book an Amazon Advertising audit.Follow me on Twitter.Amazon design examples.Follow o...
