What are Amazon suggested bids? How is it determined? Should sellers consider them? Are they good or bad? What should sellers expect? Jump in with Dustin and Kris to explore them and how Amazon sellers should use them.
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What is Amazon's Suggested Bid?
The suggested bid column shows a recommendation for how much you should bid on a keyword according to Amazon.
Should I use the Amazon suggested bid?
It depends. According to Amazon, the suggested bid feature, “provides you with an estimate of bids that have been used by other advertisers for products such as yours.”
- All right, looks like we're live. Hello everybody. This is Kris and I, I'm Dustin Kane and Kris Gramlich on this with me. How you doing today Kris? - Good, Dustin. Good to talk to you again. - Absolutely, we went live yesterday as a little test run. I think we've got this more down part now, but today we are on here. We are gonna be talking about Amazon's suggested bid. And is it good? Should you use it? How should you use it? We're just gonna touch on that for our topic today, but real briefly, both Kris and I are account executives at Sellozo and we're also both established sellers on Amazon. We've both been selling since 2013 for me- - A good old day. - Yes, back before all things like suggested bids, et cetera. Back in the good old days. But anyway, we're glad to have you on here. We're gonna talk about this and if you've got any questions feel free to throw those into the end of the chat. We will be more than happy to answer those questions or throw them into the comments I should say. All right, Kris, let's talk about the suggested bid. You wanna tell us real quick what it is? - Yeah, for sure. So this was something that Amazon rolled out and I made a few years ago that they gave sellers like a range on what they think their bid needs to be, or what the suggested bid needs to be for each individual keyword to show up on page one for that specific search term or keyword. So we get this question a lot, like when we talked and they were like, hey yeah, I'm just using the suggested bid. And it's like, okay, you do anything else with that? And they're like, yeah, I'll just use a suggested bid. I just look to Amazon tells me the bid how to set it like that. What we have found and I'm sure you've found this in your own businesses that that's not necessarily the best bid price for that keyword. They're just giving you like an average of what everybody else is bidding on. So it's not gonna be the best and you need to do optimization to get that. So what Amazon is showing you here is, just kind of giving you an idea of where your bid needs to be for each keyword and where the bid range is. And the lower number is more like lower down the page, page two, or maybe page three and the higher number I think you see here on that $10 that's gonna get you to page one but I would even go higher than that. Like, I feel like these are very conservative members. I feel like when I do these on my own or I suggest for other sellers, I'd always go higher than this. What's your thoughts there? - Yeah, so I guess to answer the question is the suggested bid good- - No. - Yeah, no? And it depends. It's an indicator and in fact, I had to look up to see what Amazon... how they actually define it. And they define the suggested bid is being calculated from a group of winning bids, for ads that are similar to yours. So, they're basically giving you the number that's going to get your Ad to show. And then that range is like you mentioned before how well it's gonna show, is it going to show a lot in high up or sometimes and lower, whether it's good or not depends on what your trying to do. If this is a keyword, if this one that's 70 cents suggested bid keyword is a keyword that is getting this person a bunch of clicks, but no sales, that's not a keyword you wanna be bidding high on. Your Amazon telling you that suggested bid is telling you that it's gonna show, but it's not converting. So, that's not necessarily great. So in that way, it's and vice versa. Obviously also, if you were on the low end of that range and your ads converting really well you wanna be bidding a lot higher so that you're showing more. So I think as an indicator, it's okay. Certainly can help you get an estimate of where you should start your bids, but it's definitely not the end all of your strategy. I think it could actually really hurt you if you just went... 'Cause you can apply straight down the list there, you can just hit apply all. You could really be in for a world of hurt if your Ad is now showing a time for keywords that don't convert very well. So yeah, I would say overall it's okay but it's not an optimization strategy. Let's put it that way. - Yeah, and what I like about it also is, it gives you an idea. There's something positive about it. What's to say that, it gives you an idea, even the range is you added the suggested bid, this is something different. It gives you an idea of like how competitive, that keyword you're targeting really is. Like, if this one said, $5 all the way up to $23, I'd be like, okay, that's pretty excess, maybe I don't wanna bid on this keyword because I know I'm not willing to spend $5 a click or whatnot. So, I like to look at like the range or the suggested bid just to see how competitive that keyword really is, before I even wanna add it to my campaigns. 'Cause if it's aggressive, if it's high, it's gonna take all the spit. You're not gonna get that many impressions or clicks because that one keyword is gonna be so competitive. And so sought after that, this campaign, if you have a limited budget this campaign, a couple of clicks and you'll be done with that campaign. - On just that word? - On just that word, right. If you don't want to like add, like maybe high searched keywords, you wanna put in a separate campaign and then those longer tail keywords you could put in another campaign. 'Cause they're all gonna have relatively close bids to one another. - Yeah, I totally agree. I think as you said, it's a good indicator, but it's not the end all. All right Kris, move it to the next thing that we're gonna talk about some tips- - Yeah, sure. - So if you're just basing things off of the suggested bid or you're manually managing your own keywords in your campaigns. Some things you wanna focus on, basing off what Kris just said. You definitely don't want to be in a situation you have just a few keywords eating up all the budget, especially if they're poor performing keywords and you're just using the suggested bid just to show. What you probably wanna do if you have a limited budget and this dovetail is pick a few of the keywords that you'd like to try to rank for. And I usually try to go for mid range ones. That's where the suggested bid, I use it. If I'm looking at 10 or 15 different keywords and I'm trying to figure out the three or four I'd like to really focus on and try to rank on and I've got a couple, $2 ones in there and the suggested bid those go away. I'm looking more at the 50, 70 cent ones, because I know I can bid a dollar and dominate on those. And if a dollar works for me, I can go. So you can use that suggested bid to help isolate the keywords you'd like to target. And then maybe just do a few keyword ranking strategy try to rank organically for those. What do you think about that Kris? - Yeah, I like that strategy. You wanna make sure you get those high search ones. I would probably put those in a separate campaign like you said and let those long tail ones run. So that's a good strategy. A lot of this sounds very tedious. Again, you and I talked to Todd of daily and they're like, oh, I just said it and maybe I'll come check on it once or twice a day. That doesn't work anymore. That's fine, but I like to have my bids updated constantly once a day seems good. But there's other things you can do as well. What other tips do you have? - Yeah, well going off of that and we're gonna talk about that later about how both you and I have moved on to automation. We've done this by hand ourselves and yeah there's a lot to it, but automation is absolutely where you wanna be. But yeah, I like to look through there, in terms of additional tips on this suggested bid. like I said, I think it does allow you to pick and choose what sort of keywords you'd like to target. And additionally, I'd like to look for good long tail keywords that have a lower ranges where you can really dominate on those. You can really go aggressive way above that range on some of the lower ones and really rank yourself fast on those long tail keywords. So, those are opportunities there. I just really try to stay away from the super high competitive keywords. They can just drain your budget so fast. - Another quick thing is like sometimes a match type is gonna be different. Like if you do an exact competitor phrase or broad, those ranges are all three gonna be different. So there's times where I've done, like a really high search keyword and the exact match the range is just outrageous. But if you put it in a broad match, it's a little bit smaller of a range where you're gonna get a wider net of those keywords you're still gonna target, pulling that exact match as well, but it's gonna be a lower cost per click per se 'cause you're not bidding so much, unlike you do the exact match. - Absolutely, that's a great point. If we didn't even get into too much about the different match types. All right, now you do get the suggested bid on the different match types as well. So, if you're trying to save some time, a broad match gets you a lot more keywords but just adjusting the one bid. So that can be beneficial as well. Still, not the full automated optimization that we'd like to see though- - For sure and let's move to that. Let's discuss what Sellozo does. So before working with Sellozo and before finding Sellozo and working with them. Get a job with them, I didn't even know this existed. Like I never knew about it, even know this type of option was available to automate your ads. I was just doing this manually, like maybe twice a week, going in and just changing all my bids manually and kind of going blind. We'll be doing the same thing- - I think we're losing you a little bit there Kris. - Were you doing the same thing? - It might be the... Okay, I think I lost you there for a second Kris, could be a slow internet connection in my house. Can you hear me okay right now- - It's probably that Google fiber you just updated with- - Hung on one second. Let me put something real quick. - Get the kids off the Xbox. - All right, we'll see if that makes a bit of a difference here, yeah you were cutting up. But I know that you were talking about before we came on with Sellozo that we didn't really know that automation existed and we spent a lot of time downloading certain reports pulling out keywords. So it was definitely an eye opener for us, but the way that automation is is all these bids are made based on a target, a cost that you set for your campaign. So our tool actually will take all of the data from every keyword and there'll be the ad groups and your auto campaigns, every keyword, it will daily look at the data and see how that keyword is performing against your target a cost and make marginal up or down adjustments to your bids daily. And that's where you really see the power of what you can do with automation. You're now getting hundreds to thousands of adjustments on a daily basis to your campaigns. And it can really make a huge difference. - And this has been a topic that a lot of people are talking about recently, about like using software or should I just do this manually? And there's two different thoughts. And obviously I'm on the software side, 'cause I have a tool now that does my bid adjustments for me every day, it'll move my keywords for me as they convert to the next campaign. It'll make negative keywords for me automatically, but there's still gonna be those people out there that just wanna do it manually. And that's all I really wanna focus on. We kind of cater to both of those. You don't have to turn on the automation, inside slows up for every campaign there's still campaigns you can do manually. I know I've talked to some sorters and they do that. They still wanna monitor some of their campaigns majorly but I can tell you from experience and Dustin you probably can too, is just having that off your shoulders so that we could focus on product or listings or trying to figure out different strategies on ranking. Let the tool run. You can always come in and check on it. You can put parameters on it and you could still check on a daily and see how it's performing. Still with me? Mic check one two. It looks like he's cutting- - I think I lost it there again Kris. - It's all good, we'll keep going here. So yeah. So that's kind of what Sellozo does. Is we help with automating- - Can you hear me Kris? - Yeah, I got you Dustin. Yeah, so we'll go ahead. We'll get this rolling here. We'll leave it open for Q&A- - Everyone out there can hear me right now. - There's a... - I think we have some internet connection problems. Kris is hosting this meeting so hopefully we can get... If it's on his end, we can get it up and running. If it's on my end, I apologize- - We'll just pause you for some Q&A- - See if Kris pops here in one second. Give him a second to come either- - Yeah, I'm here. - You could hear me talking the whole time? - Yeah and on my side it looked like I was live all the time. Like I never got out. - Okay, it's probably me then, if it cuts out again or you look at me and I'm frozen, you can wrap this up for everybody. I apologize if it's on my end, I don't know what's going on- - Well, there's a link in the description where Dustin and I you can book a call with us and Dustin I we can kind of go over your account with you and show you what Sellozo does. Again, we work with sellers daily. We take calls every day and we just, I don't know enjoy learning about your business and enjoy showing you what Sellozos can do. 'Cause it's powerful tool. And then a lot of people are trying to look for a good tool. This is one of them. This is definitely a good tool to use. - Yeah and like Kris mentioned, we love having conversations with you. You can book a time with us and we'll just consult with you. We're not real salesy on our calls. We're just gonna consult with you. And if we can help you out in any way on your business, we'd love to do that. And then we'd obviously love to walk you through and answer any in depth questions about how Sollezo operates. But I did like what you mentioned Kris is that, I basically turn everything over to all my campaigns to Sellozo but I will make small adjustments manually if needed. Like if there's a keyword that's looks like it's a hero, sort of a keyword. I can move that out into its own campaign. I'll make adjustments like that. So they're more strategic. They're not money like constantly changing the bids. So yeah, that works best for me. - Yeah, I agree, I agree. Well, we'll leave it at that again, there's a link in the description, but call, we'll chat. We'll just do like convo. We'll go over your business. Give us a check go on and talk about Amazon and then go from there. So thanks for everybody who joined and look forward to doing the next one with you. - You got it.