Amazon retailers who want to grow their business and increase customer base will need more than organic sales. It is time to invest in advertising. Amazon ads campaigns have been proven to be the fastest way for sellers to increase visibility and double their conversion rate.
It is not an easy task to set up a compelling campaign. There are many steps that require effort and attention. The most difficult step is choosing the best bidding strategies.
Let’s take a look at this article if you don’t have any experience with Amazon and want to know what, where and how to bid. You can find out more about branding in the Amazon review guide for Amazon sales.
What Is Amazon Bidding?
Amazon bidding is Amazon’s system for placing ads. The algorithms of the Amazon hosting engine can’t place all ads in the desired spot because there are many companies selling similar products on the platform trying to reach the same customers. To find more information about importance of branding, you should try What Is The Amazon FBA Fee Calculator for Amazon sales
Only a few people are allowed to have their ads displayed. Amazon uses an auction-based system to ensure fairness. Sellers must pay a set amount to get their desired ad displayed.
It is easy to see why Amazon is so competitive and the number of competitors vying for the victory. It is important that you keep track of your bidding strategies.
How To Bid For Tangible Results On Amazon?
1. Determine your goals.
Amazon ad auctions are best prepared. This will help you determine your goals, the ad formats that you are targeting, and how often you plan to run your campaign.
These are often overlooked by Amazon sellers who jump at bidding without a deep understanding of their business. They bid on the basis of gut feelings, with no supporting evidence.
Most of the time, such reckless investments will go stale. You might consider evaluating the unique selling points and narrowing your target audience to get a better idea of what you can afford to spend.
These aspects will help you plan your next move and make it more likely that you succeed.
2. Understand your competitors.
Bidding in an auction is similar to going to war against your rivals. It is normal for you to compete for the same terms and phrases if you all have the same product line.
This scenario will require you to assess their strengths and weaknesses as well as whether they have used these keywords in the past and their financial resources. This will give you a better understanding of your opponent and help you decide whether you want to continue fighting or quit.
Your store sells food processors that are affordable for the average household. When you try to find “cheap food processing units” as your primary keyword, KitchenAid’s official Amazon store becomes your competition. You will likely lose because of the brand’s strong sales record and reputation.
Imagine that you had no idea about your rivals. You would have been too involved in the bidding process and wasted a lot of time and effort. You would still not have the keyword. Do a thorough Amazon competitor analysis before you go.
3. Select a suitable set of bidding strategies.
Amazon currently offers three types of bidding to retailers: down-only, up & down, and fixed.
- You can grant Amazon the right to lower your initial bid up to 100% if you don’t get as many click-throughs as you expected. Amazon will automatically identify searches that are not relevant to your ads and reduce the amount you spend.
- Increased and decreased bids:Amazon can limit your ads if they aren’t potent enough, but it can also increase your initial bids if you have outstanding ads.
If a search results in a strong sales intent Amazon will raise the funds, place your ads on page one, and encourage customers to convert right away.
- Fixed Bids: These are the oldest form of bids. Fixed bids, as the name suggests, allow you to control how much money is spent on each sponsored article.
Many aspiring businessmen find it difficult to choose between these three options. People with tight budgets will prefer to have down-only or fixed bids in order to reduce ad spend. Large companies that have a track record of executing effective ad campaigns will be more likely to opt for up-and-down bids.
4. Keep track of your bidding
You might feel tempted to just leave the bid process alone and let Amazon handle it. This can have a negative impact on your budget as well as the results of your ads campaigns, since there are always changes.
What if someone offers a better bid than yours What if Amazon spends more than you expect? If you want your ads to be relevant long-term, it is important that you closely monitor how your bids perform.
Conclusion
Amazon makes it more difficult to win a bidding auction, especially considering the competition from other brands who want the same keyword. As such, it is important to seek professional assistance whenever possible.
Read More : Amazon Promotions: A Quick Guide
