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    Home»Business»Real Estate»4 Most Effective Amazon Bidding Strategies (2021 Updated)

    4 Most Effective Amazon Bidding Strategies (2021 Updated)

    Trevor James.cBy Trevor James.cNovember 17, 2021No Comments6 Mins Read
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    Boost the effectiveness of your Amazon PPC campaign using these highly recommended strategies from the top experts. Keep reading to know more!

    For Amazon retailers that want to scale their businesses and expand the customer base, relying on organic sales alone will not suffice. You need to step up the game and invest in running ads. Amazon ads campaigns are proven to be the quickest way for sellers to increase their visibility and double down on the conversion rate.

    However, setting up a compelling campaign is no easy task, as it involves multiple steps that call for effort and attention. Among these, picking out the most suitable bidding tactics is considered the most challenging.

    If you have no experience regarding what, where, and how to bid on Amazon, let’s have a look at the article below. To find more information about importance of branding, you should try Amazon review guide for Amazon sales

    What Is Amazon Bidding?

    Amazon bidding refers to the working mechanism of Amazon when it comes to ad placements. Since there are various companies on the platform selling the same products and trying to reach a similar group of potential customers, the algorithms of the hosting engine cannot possibly put all of their ads on the coveted spot.

    Only a selected few are allowed to have their ads featured. Amazon ensures the process is done fairly through an auction-based system, in which sellers put forward a certain amount of money to gain their desired ad display.

    Given how competitive Amazon is and how many rivals are vying for the win, it is understandable that you should closely keep track of your bidding approaches.

    How To Bid For Tangible Results On Amazon?

    1. Determine your goals.

    Source

    Preparation is crucial concerning Amazon ad auctions. It helps you to draft out what your objectives are, which ad formats you aim at, and how frequently you intend on running your campaign.

    Many Amazon sellers fail to take these into account and jump at bidding without having a thorough grasp of their business. As a result, they bid based on nothing but gut feelings and have no solid evidence to back up their decision.

    In most cases, such a reckless investment will end up going to waste. Hence, you might want to kickstart by evaluating the unique selling points of the items for sale, narrowing down your target audience, and having a general idea of how much money you are willing to spend.

    Once you have these aspects under control, your next move will be well calculated and is more likely to be successful.

    2. Understand your competitors.

    Source

    Going into a bidding auction is like going to war with various rivals. If all of you share the same line of products, it is natural that some of you may end up competing for the exact terms and phrases.

    In this scenario, you have to be aware of their strengths and weaknesses, whether these keywords have been employed in the past, and how generous their resources are. From there, you have a better viewpoint to decide if you want to continue your battle or you should drop out.

    For example, your store focuses on selling food processors for the average household. You try to get “cheap food processors” as your primary keyword, and you find yourself going up against KitchenAid official Amazon store. Knowing the brand reputation and its strong sales records, chances are you will lose.

    Suppose you knew nothing about the rivals. You would have been caught up in the bidding and wasted lots of time and effort during the process. And you still would not have got the keyword!

    So, remember to perform a comprehensive Amazon competitor analysis beforehand.

    3. Select a suitable set of bidding strategies.

    Currently, Amazon provides retailers with three main bidding types, including down-only bids, up & down bids, and fixed bids.

    • Down-only bids: In this type of bidding, you grant Amazon the ability to reduce your initial bid by up to 100% if your ads do not deliver as many click throughs as expected. Amazon will automatically pick out searches that bear little relevance to your ads and dial down on the amount of money you put on.
    • Up & down bids: Here, not only is Amazon capable of limiting your ads when they are not potent, but it also has the right to increase your original bids if your ads are excelling.

    Should a search come up with a strong sales intent, Amazon will raise the money, put your ads on the front page, and urge customers to convert immediately.

    • Fixed bids: These are undoubtedly the most traditional form of bids. As the name already indicates, fixed bids mean you are the one in complete control of how much money is spent on each sponsored content.

    Choosing one out of these three choices can be a dilemma for many aspiring businessmen. Generally speaking, people with a tight budget would prefer down-only bids and/or fixed bids so as to keep the ad spend minimum. Big companies with a history of efficient ad campaigns are more inclined to go for up & down bids.

    4. Keep track of your bidding

    Source

    Once you finish placing a bid, you might be tempted to leave it there and let Amazon do the work. However, this can be detrimental to both your budget and the results of your ad campaigns since changes can emerge all the time.

    What if there is someone offering a higher bid than yours? What if Amazon spends way much more than your expectations? Closely following how your bids play out is needed for those wishing their ads to stay relevant in the long term.

    Conclusion

    Winning a bidding auction in Amazon is more difficult than it appears, especially when you consider the sheer competition of various brands wanting to get the same keyword.

    Thus, you should always get as much professional help as possible instead of working on your own. Olifant Digital is a highly experienced digital marketing agency that specializes in Amazon bids, and they are always more than willing to provide assistance. Check out their website now!

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