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Why Amazon Bid Adjustments Are Costing You Sales
Description
Lucas and Luna dig into Amazon's bid adjustment feature for placements, devices, and audiences. Lucas reveals how a DTC skincare brand lost 22% of its ROAS by letting default bid adjustments run unchecked on Amazon Sponsored Products. They walk through three specific adjustment traps: over-bidding on 'top of search' placements, ignoring the 'rest of search' conversion delta, and blanket device adjustments that ignore tablet traffic conversion rates. Lucas explains why the optimal bid adjustment for 'top of search' is often a negative percentage, not a positive one, and shares a simple spreadsheet framework to calculate placement-level target ROAS. Luna questions whether Amazon's own bid adjustment recommendations can be trusted, given the platform's revenue incentives. The episode closes with a practical takeaway: run a placement-level report weekly and adjust in 10% increments only.