Reply To: If specific keywords are bringing sales, should I be increasing the ad spend?

    Anna Norah

    According to my analysis, we should increase some cents bids if our keywords are performing well and our ROAS is also good, because according to the Amazon algorithm, they rank those keywords whose bidding is higher than others, so we have a chance that our sales will be doubled through this. Suppose you have bid $2.00 for a keyword. The second-highest bidder has a default bid of $1.50. As the highest bidder, you will win the ad spot, but you won’t have to pay $2.00. You will only have to pay $0.01 more than the other bidder. This means you end up paying $1.51 instead of $2.00. I have seen that many times sellers lowered the bids of keywords which are ranked but they see drops in sales soon. When you have set high bids, Amazon will give you priority, but when you decrease your bids, it really affects your ranking if the other sellers have higher bids than yours.