Cost Per Clicks Outrageous?

Amazon Sponsored Products
1

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.

2

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?

3

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…

4

I have feeling this may be as a result of poor sales generally, sellers increasing their bids to try to get the sales, I have also noticed a big jump from £1-2 up to £8-10 needless to say we haven’t increased our bids.

5

I too have seen this in my niche (gifting). Some bids today which are at over a £5ver for a products worth 20 quid. after the fba fee, cogs and any discounting, there’s little left.

6

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.

7

Are you selling unique products or rather generic private label items?

8

it is private label products.

9

Hi there
I sell a unique, custom made Home & Kitchen product.
I had the same thing happen with my suggested bids increasing from about 25p to up to around £2.50 months ago! My ACOS has gone from between 4-6% to it’s current 18%, which is outrageous. All profit is now being eaten up by my ad spend and I’m at my wits end.

I had heard that Amazon was changing to become a “pay to play” only platform and have noticed that they have been promoting their sponsored product webinars in a big way. I feel the system has become rigged / strongly manipulated to increase Amazon’s profits even further and have lost all trust in their systems. It is sad that they have become just to big to really care about their sellers.

10

yes i can help you

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