How to Get More Amazon Ads Conversions by Bidding Less - PPC Optimization

Published on November 25, 2025

About this video

For personalized assistance with your Amazon Advertising strategy, visit https://amazoniappc.com

Learn why lowering your Amazon PPC bids can actually increase your sales in this detailed Amazon advertising strategy video. I explain the counterintuitive approach of reducing bid amounts to get more clicks and conversions within your daily budget.

In this Amazon PPC tutorial, I break down a real scenario using a 30 dollar daily budget campaign. When you bid high at 4.75 per click in competitive markets, your cost per click matches your bid exactly, indicating fierce competition. With only 6 clicks per day from your budget, you need at least 10 clicks on average to generate a sale with a 10% conversion rate, making it nearly impossible to achieve consistent results.

By lowering your bid to 1.75 per click, you can generate 17 clicks daily instead of just 6, giving you better chances for conversions even if you lose premium placements like top of search. This Amazon PPC strategy focuses on volume over position when your listing isn't strong enough to compete with top players.

I cover essential Amazon advertising concepts including bid optimization, cost per click management, conversion rate considerations, and daily budget allocation. This approach works when your product listing optimization is solid and you understand your target keywords' competitiveness.

Whether you're managing Amazon sponsored products campaigns or working with an Amazon advertising agency, understanding this bid strategy can improve your Amazon ads performance and return on ad spend. Perfect for Amazon sellers looking to optimize their Amazon PPC advertising without increasing budgets.

Contents: 0:00 Introduction to Lower Bid Strategy 0:24 High Bid Scenario Analysis - 30 Dollar Budget Example 1:30 Competition and Cost Per Click Reality 2:13 Click Volume vs Conversion Rate Math 2:40 Lower Bid Strategy Benefits 3:20 When Your Listing Isn't Strong Enough 4:00 Algorithm Learning and Optimization Tips

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Transcript

Hi guys, welcome to another video on Amazon PPC. In today's video, I would like to cover one interesting fact and that is if you lower your bid and pay less for a click, you will start to have sales on Amazon. It may sound like a paradox, but hear me out. So, let's say this is the situation. Now, you can multiply this by 100, by a,000, by 100,000. The the point is the same. So, let's say you have a daily budget of $30 per campaign and maybe you have a I don't know single keyword campaign or whatever, but stay with me. So, you have a daily budget of $30 and you have a pretty high bid. Uh what's happening in reality very often is that you will have if the competition is really fierce, you will have high cost per click of 4.75. Let's say that gives you an information that you're bidding high. you're paying $4.75 per click and the CPC is the same, meaning that every single click is costing you $4.75. So, it's not 4.2, it's not two on average. On average, if if the average is exactly the same as your bid, it means that you're spending the exact bid amount on the same click. Meaning, it's it's really competitive. So you would probably have to go up to seven or whatever it takes, you know, to bid high depending on your goal if you want to hit top of search and you know just not making it. So that brings us further down to the daily clicks. Daily clicks for if you have $30 and you have 4.75 cost per click, it brings you to only 6 something clicks per day, which is taking into consideration the conversion rate. If that that's the case, you know, it may be up and down depending on your context. It it gives you the uh information that you need at least 10 clicks on average to have a sale with a conversion rate of 10 10%. So what's happening in reality that bidding this high you will not getting you will not get enough clicks to actually have a sale. Yes, sale can happen here and there. If somebody clicks and buys after a single click, yeah, that can happen. But in reality that rarely happens or it is so low that you don't basically um accomplish anything. So if you lower the the the bid you know you will not get premium placements. You will not get top of search or any anywhere higher on the page. But that doesn't mean that you will not have any sales because you know if you go down the to to to the rest of search and middle of the page or even half of the bottom half of the page for less clicks. So let's say your CPC then starts to be 1.75. So that's something already. So if we take a calculator, let's see. So if you now have $30 budget and let's see. So immediately you have 17 clicks that you can have for for a daily budget you know. So this is something you will have to have in mind. So sometimes you simply your listing is not strong enough to compete with the top players out there and you need to settle for as I said in previous videos either different keywords which are not that competitive or if you really want to bid on this uh keyword or for a few keywords then you need to consider your context. So do you really have to be that high? Can you even afford to be that high or do you need to go lower? And then um you know play with what you have for the moment and then once the algorithm starts to know your product and your conversion rate is pretty good because you optimize your listings and did everything you should be doing before launching or relaunching, then this is something to take into consideration. Let me know what you think and if you had have any questions, please let me know in the comments and see you tomorrow in the next video. Bye-bye.

Frequently asked questions

Why can lowering your Amazon PPC bid actually lead to more conversions?

With a fixed daily budget, a high bid eats through your spend on very few clicks. In the example from the video, a $30 daily budget at $4.75 per click yields only 6 clicks per day, which is not enough volume to produce consistent sales at a 10% conversion rate (which requires roughly 10 clicks per sale on average). Dropping the bid to $1.75 stretches the same $30 into 17 clicks daily, giving the algorithm enough data and volume to generate conversions even from lower page positions.

What does it mean when your average CPC exactly matches your bid in Amazon PPC?

When the actual cost per click equals your bid amount with no reduction, it signals that competition for that keyword is extremely fierce. In a less contested auction, Amazon would charge you only slightly above the second-highest bid, so your actual CPC would come in below your maximum. An exact match between bid and CPC means other advertisers are consistently bidding at or above your level, and you are barely winning those auctions at full cost.

When does a lower-bid, higher-volume strategy make sense for Amazon PPC?

It is the right approach when your listing is not yet strong enough to compete for top-of-search placements, or when your daily budget is too limited to generate sufficient click volume at competitive rates. Accepting middle-of-page or rest-of-search placements at a lower CPC keeps clicks flowing within budget, gives the algorithm enough conversion data to learn your product, and avoids the situation where a high bid drains the budget after just a handful of clicks with no sale.