Guide

Amazon ads default bid and suggested bid: what they mean and what to bid instead

The default bid is the bid Amazon uses for every keyword or target in an ad group that has no bid of its own, and for the whole of an auto campaign ad group. The suggested bid is Amazon's estimate, with a range, of recent winning bids for that keyword. Neither knows your margin, so set your own bid from target ACoS.

Default bid
Ad group level; used where no keyword bid is set
Suggested bid
Amazon's estimate from recent winning bids, with a range
Your bid
Price x conversion rate x target ACoS
Example
₹999 x 8% x 25% = about ₹20

Default bid: the ad group's fallback

When you create an ad group, Amazon asks for a default bid. Any keyword or product target you add without a bid of its own uses it. In an auto campaign it is the bid for every match group unless you set them separately. Change the default bid and every target without its own bid changes with it, which is useful for a quick test and dangerous in an ad group with fifty keywords that you thought had their own bids.

Good practice is to give every keyword in a manual campaign its own bid and keep the default bid as a floor, so a keyword added later without a bid does not overspend.

Suggested bid: what Amazon thinks wins

Amazon shows a suggested bid and a range next to each keyword. Amazon's help page describes the suggestion as based on bids that won auctions for similar ads recently. It moves with competition and season, and it is often higher during sale events. It does not know your price, margin or conversion rate, so it can be profitable for one seller and a loss for another on the same keyword.

Amazon also offers to apply suggested bids in bulk. Accepting them everywhere is one of the quicker ways to double an account's CPC.

How to set your own bid

  1. Find your target ACoS

    Break-even ACoS minus the margin you want to keep. The break-even calculator does this from price and fees.

  2. Estimate conversion rate

    Use the keyword's own history if it has thirty or more clicks; otherwise the ASIN's organic rate from Business Reports.

  3. Multiply

    Bid = price x conversion rate x target ACoS. A ₹999 product at 8% and 25% target supports about ₹20.

  4. Compare with the suggested range

    If your number is above the range, bid your number or the top of the range, whichever is lower. If it is well below, the keyword may not be affordable at your margin; try it at your number for two weeks and see if it wins any impressions.

  5. Adjust weekly on data

    Raise bids where ACoS is below target and orders are steady; lower where it is above.

When the suggested bid is too high

Sellers often see a suggested bid of ₹40 on a keyword for a ₹399 product. At a 10% conversion rate that is ₹400 per order in ad spend, more than the price. The suggestion is not wrong about what wins; it is telling you that the keyword belongs to sellers with a higher price or a better conversion rate. Bid what you can afford and accept fewer impressions, or target longer, cheaper phrases. Our CPC guide collects reported India ranges; our keyword research guide covers finding cheaper terms.

When it is too low

A campaign that is not spending often has bids below the low end of the range. Our not spending guide covers that case. Raise bids on your five or ten best keywords to the low end first, not across the board, and check the effect after a week.

A bid well under the range is not always a mistake. On long-tail phrases with little competition, a low bid can win enough impressions at a much lower CPC than the head term. Judge it by impressions and orders over two weeks, not by where it sits against the suggestion.

Setting bids across hundreds of keywords

The console shows one suggested bid at a time. BlooprintAI lists every Amazon India keyword with its current bid, the suggested bid, CPC, conversion rate and ACoS, so you can filter the keywords whose bid is above your target-ACoS bid and bring them down, or raise the ones below the suggested range that convert, in one action after a summary. It suggests; you choose and apply.

Frequently asked questions

What is the default bid in Amazon advertising?

The bid Amazon uses for every keyword or target in an ad group that has no bid of its own, and for auto campaign ad groups. It is set when you create the ad group.

What is the suggested bid on Amazon ads?

Amazon's estimate of what has been winning auctions for similar ads recently, shown as a number and a range. It does not account for your margin or conversion rate.

Should I use Amazon's suggested bid?

As a reference, not a target. Work out your own bid from price, conversion rate and target ACoS, then compare it with the range.

What should my first bid be on Amazon India?

Price times expected conversion rate times target ACoS. A ₹999 product converting at 8% with a 25% target supports about ₹20 per click.

Does BlooprintAI set bids automatically?

No. It shows your bid beside the suggested bid and your performance so you can change bids in bulk after a summary. Every change is yours.

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