🚨 𝐘𝐨𝐮𝐫 𝐀𝐦𝐚𝐳𝐨𝐧 𝐏𝐏𝐂 𝐁𝐢𝐝 𝐒𝐡𝐨𝐮𝐥𝐝 𝐍𝐎𝐓 𝐒𝐭𝐚𝐫𝐭 𝐖𝐢𝐭𝐡 𝐀𝐦𝐚𝐳𝐨𝐧’𝐬 𝐒𝐮𝐠𝐠𝐞𝐬𝐭𝐞𝐝 𝐁𝐢𝐝 Many sellers ask: “𝐖𝐡𝐚𝐭 𝐛𝐢𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐈 𝐬𝐞𝐭 𝐟𝐨𝐫 𝐭𝐡𝐢𝐬 𝐤𝐞𝐲𝐰𝐨𝐫𝐝?” That’s the wrong first question. The better question is: “𝐖𝐡𝐚𝐭 𝐢𝐬 𝐭𝐡𝐞 𝐦𝐚𝐱𝐢𝐦𝐮𝐦 𝐂𝐏𝐂 𝐭𝐡𝐢𝐬 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 𝐜𝐚𝐧 𝐚𝐟𝐟𝐨𝐫𝐝?” 📊 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 — 𝐈𝐥𝐥𝐮𝐬𝐭𝐫𝐚𝐭𝐢𝐯𝐞 𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨 Product price: $39.99 After COGS, Amazon fees, fulfillment, promotions, etc.: 𝐂𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧 𝐛𝐞𝐟𝐨𝐫𝐞 𝐚𝐝𝐬 = $𝟏𝟓/𝐨𝐫𝐝𝐞𝐫 Target contribution after advertising: $𝟕/𝐨𝐫𝐝𝐞𝐫 That means the product can afford: $𝟖 𝐚𝐝 𝐜𝐨𝐬𝐭 𝐩𝐞𝐫 𝐨𝐫𝐝𝐞𝐫 Now assume the campaign converts at 12%. Maximum profitable CPC: $𝟖 × 𝟏𝟐% = $𝟎.𝟗𝟔 So if Amazon suggests a $𝟏.𝟒𝟎 𝐛𝐢𝐝, that doesn't automatically mean you should bid $1.40. At a 12% conversion rate: $𝟏.𝟒𝟎 𝐂𝐏𝐂 ÷ 𝟏𝟐% 𝐂𝐕𝐑 = $𝟏𝟏.𝟔𝟕 𝐚𝐝 𝐜𝐨𝐬𝐭/𝐨𝐫𝐝𝐞𝐫 That leaves only about $𝟑.𝟑𝟑 𝐜𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧. 🎯 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐰𝐡𝐞𝐫𝐞 𝐏𝐏𝐂 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐦𝐚𝐭𝐭𝐞𝐫𝐬. Amazon's suggested bid tells you something about the 𝐚𝐮𝐜𝐭𝐢𝐨𝐧. Your unit economics tell you something about your 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬. I don't want to manage PPC around: ❌ Suggested bids ❌ Competitor bids ❌ CPC alone ❌ ACoS targets without context I want bids to be connected to: ✅ Contribution margin ✅ Conversion rate ✅ Target profit ✅ Customer value ✅ Campaign performance 𝐓𝐡𝐞 𝐠𝐨𝐚𝐥 𝐢𝐬𝐧'𝐭 𝐭𝐨 𝐰𝐢𝐧 𝐞𝐯𝐞𝐫𝐲 𝐚𝐮𝐜𝐭𝐢𝐨𝐧. It's to win the right auctions at a price your business can afford. If your PPC strategy is built around bids first and profitability second, there may be money being left on the table. 𝐀𝐦𝐚𝐳𝐨𝐧 𝐏𝐏𝐂 𝐢𝐬 𝐧𝐨𝐭 𝐣𝐮𝐬𝐭 𝐚𝐧 𝐚𝐝𝐯𝐞𝐫𝐭𝐢𝐬𝐢𝐧𝐠 𝐩𝐫𝐨𝐛𝐥𝐞𝐦. 𝐈𝐭'𝐬 𝐚 𝐮𝐧𝐢𝐭-𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜𝐬 𝐩𝐫𝐨𝐛𝐥𝐞𝐦.