(6.2) Keyword Bid – Key Factors for Selecting Potential Products.

Keyword Bid – Key Factors for Selecting Potential Products.

Eazyppc welcomes you to the article ‘Keyword Bid – Key Factors for Selecting Potential Products.’ – You should read and thoroughly understand the previous articles, as Eazyppc uses terms and phrases that were explained in earlier posts throughout later ones.

Articles you should review before reading this one:

• (3.1) Why Keyword Bid Matters
• (3.2) Estimated Advertising Costs
• (2.2) Average Market Price
• (5.1) Prerequisites for Ranking
• (5.2) Why You Need to Run PPC Ads on Amazon

For new Sellers on Amazon, Eazyppc believes that controlling advertising costs is a critical factor for survival. One of the most effective and suitable approaches for new Sellers is to choose products with low keyword bids: ideally under $1 or €1.

1/ Why Prioritize Products with Low Bids?

• Easier budget control: Product niches with low bids in the core keyword set -> Lower estimated advertising costs -> This makes it easier to run your ad campaigns, especially important when capital is limited.

• Better cash flow rotation: With low bids, you can use revenue from subsequent months to reinvest in inventory and advertising to continue growing — especially when Cashflow is not yet large enough to handle products with high bids.

• Avoid ‘sinking’ – no impressions or traffic in the market: In niches with high bids (e.g., $5–6 per click), if you don’t have enough budget to compete with well-performing competitors, your PPC ads won’t generate sufficient impressions or traffic -> no orders & no improvement in Organic Rank. This can easily cause your product to “sink” while storage fees keep accumulating.

• Drawback: More new competitors entering the market due to low bids.

2/ Building an Advertising Cost Scenario Spreadsheet

Before running ads, Eazyppc has guided you to create a spreadsheet simulating business scenarios based on bid levels:

• Collect bid data from Helium10 and Amazon Advertising in Seller Central (Note: using Amazon’s suggested bid as an anchor is more accurate.)

• Build 3 scenarios using the Sample Template that Eazyppc has provided:

  • High Case: High Bid

  • Median Case: Median Bid

  • Low Case: Low Bid

For each scenario, you can calculate the following data as a baseline when you start selling — though in practice, results will vary:

• Monthly advertising costs

• Revenue and profit

Having a clear picture of the numbers will help you proactively make sound financial and product decisions. Based on the 3 bid scenarios, you can adjust your projected metrics accordingly.

3/ When Should You Consider High-Bid Products? (High risk, high return)

For experienced Sellers with significant capital (typically businesses with years of experience or those who own their manufacturing technology), high-bid niches can be seen as an advantage because:

• Not every competitor is willing or able to sustain a CPC of €5–6 per click, nor absorb losses until the product reaches high-visibility positions to generate organic traffic and orders.

• If ads are well managed, SEO is fully optimized, and you’re prepared to absorb losses in the early stages to push the product to high-visibility positions (top 10, 20, or the upper half of page 1)

For niches with high bids:

• If the product has a high selling price (you should review the article on market pricing) or a strong conversion rate, it will be better able to sustain high keyword bids when running PPC, since the revenue from each conversion can offset the advertising cost for that order. Additionally, if the PPC campaign is properly optimized and focused on high-converting keywords, it can still be profitable even with high keyword bids.

• In cases where organic rank improves significantly — for example, breaking into the top 10 organic search results — after approximately 2–3 weeks you can gradually reduce the keyword bid.

4/ Keyword Bid Levels According to Eazyppc:

• Low bid: <$1 -> most suitable for new Sellers
• Medium to high bid: $1–$2.99
• Very high bid: >$3