Cost Per Clicks Outrageous?

Hi there,

We have 4 maybe 5 top keywords in our category, which for the past 9 months have been at a suggested bid of approximately £2.00. However, these words are now at a premium and this morning the range is sitting at £2.45 - £10.07 with a suggested bid of £5.01!!

Surely this can’t be correct? The average price of the category is sub £11.00 so who in their right mind is paying this outrageous amount. £11.00 - £5.00 - Amazon Fees - Cost of Goods = A big fat Zero!

Does anyone have a take on this or experience in competing here? With a daily budget on this solo keyword campaign of £50 our budget would be exhausted by 9.30am! If we don’t advertise then sales will likely be small to zero. Help please.

May I ask what kind of products are you selling, since the suggested bids are so high? It appears to be a crowded category.

Have you tried selling the items without paying for advertising to see what are the organic sales?

Hi Kika. We are in the sporting goods category. I think we will need to go all organic if this is the state of play. It is a private label product.

We had the same thing happen about a month ago… We just ignored it and put the bid we want to place in and haven’t seen any drop in sales from adverts… Anyone bidding such large amounts are going to use up their budget very quickly (if they’re capping it) so you might get more of a results later in the day once they’ve spent their budget…