I’ve been selling on Amazon for 5 years now and doing reasonably well. I’ve always had an auto-target campaign and in Sept 2019 was convinced by Amazon a manual campaign would be wise. Their people game me recommended keywords for my products, as well as recommended bids. Over time they send me more recommended keywords which make sense, as well as bid recommendations to go along with them.
I saw the option for dynamic bids for both up and down, when more likely to convert to a sale, it bids up, when less likely, it bids down. That sounds awesome! Anything that helps the business do more business and spend less on unneeded advertising expenses is a good thing for us all.
But here is the problem… Since using this tool, I’ve never lost more money than I have recently. I’m used to being charged $500 for my sponsored ads maybe once every two weeks. In the last two weeks I’ve been charged $1,664 and only captured $1,994 in sales. On the surface, I made $330, right? Well of course not… I’m FBA and MAYBE I capture 40% of a sale as profit, with about 40% being various Amazon fees (not counting PPC), and 20% being cost of product. Taking into account the $330, I spent $1,964 to cover all the fees and costs associated with those sales. I lost SO much money in these last two weeks it’s not funny and I don’t know where it went wrong. I’m wondering if a competitor is maliciously clicking on all of my ads to drive up my costs. Manual has never done as well as the auto ads, but it’s never been like this. I’ve been able to make a living and now I can not.
I turned the setting for dynamic bids to down only, on all the bids which recommended lower bids, I’ve lowered them, will NOT raise bids as they are recommending because bid over $1 and up to $2 are unreasonable to me for a $12 sale where it may not even convert. Today I just turned off the manual campaigns. I can’t afford them. I’m basically paying people to take my products at this point and I can’t do business like that.
I’m not a PPC guru and I try to follow recommended bids as well as the advice of the professionals who send me information and recommendations. I don’t feel any of the recommended keywords are bad, in fact they’re applicable, but my budget it suddenly being eaten up quickly and my money is flying out the window and I don’t know what to do about it. Help would be appreciated.
I have two manual campaigns and one auto. The ROAS for the manuals last week was .81 for 18 sales and 1.41 for 52 sales. The auto for the same period was 7.21 for 11 sales. In the last 7 days it was 1.33 for 25 and .63 for 26 respectively with the auto doing 5.66 for 9 sales. While the auto is grabbing fewer sales, I am completely happy with those numbers.