How are CPC calculated?

I am currently on holiday so have extended shipping times and thought I had put all of my campaigns at .02p. We have an automatic campaign that has had four clicks today at .96p each.
Default Bid is 0.02
Set at Fixed Bid
Where you can increase bids by a percentage these are both set at 0%.
Obviously there are no keywords which overrides these as it is an automatic campaign. Can anybody explain where else I can look to stop these high costs please? TIA.

It sounds like you’ve taken several steps to ensure that your bids are set at a low level in your automatic campaign, yet you’re still seeing higher click costs. Here are a few additional factors to consider and steps to take:

  1. Market Competition: Even with a low bid, if there’s high competition for the keywords related to your product, the bids required to win auctions can be higher. Evaluate the competitiveness of your market and consider adjusting your bid strategy accordingly.
  2. Bid Adjustments: While you mentioned that you’ve set the bid adjustments to 0%, check whether any of the bid adjustments have been accidentally adjusted or if they’re being overridden at a different level (e.g., ad group or campaign level).
  3. Bid History: Amazon’s algorithm considers historical performance when determining bids. If the algorithm perceives a higher likelihood of conversions for certain placements or audience segments, it might adjust bids accordingly. Monitor your campaign’s performance data to see if there’s any pattern in higher-cost clicks.
  4. Ad Relevance: Ad relevancy and click-through rate can impact bid costs. An ad that’s highly relevant and generates clicks might be rewarded with better ad placement, even with low bids.
  5. Keyword Relevance: Even though it’s an automatic campaign, Amazon’s algorithms choose keywords based on your product information. Ensure that your product listing and backend keywords are highly relevant to avoid unrelated clicks.
  6. Negative Keywords: Check if you’ve added any negative keywords that might be preventing your ads from showing for certain searches. This can inadvertently limit the reach of your campaign.
  7. Review Search Terms: Analyze the search terms that triggered your ads. If there are certain terms leading to expensive clicks that aren’t relevant to your product, consider adding them as negative keywords.
  8. Campaign Optimization: Continuously monitor your campaign’s performance and regularly adjust bids based on the actual data you’re seeing. Optimize your campaigns by pausing or adjusting underperforming keywords or ad groups.
  9. Contact Amazon Support: If you’re unable to identify the exact cause of the high click costs, consider reaching out to Amazon seller support. They might be able to provide insights specific to your campaign.
  10. Stay Updated: Amazon’s advertising platform and algorithms can undergo changes. Stay informed about any updates or changes that might impact your campaign performance.

Remember that Amazon’s advertising platform is dynamic, and a combination of factors can influence bid costs. Regularly monitoring and adjusting your campaigns based on data-driven insights will help you achieve the right balance between visibility and costs.