The next one we need to know is Minimum Bid.
Aside from any rule in automation our system has, this is the bid that we’ll never bid below within the campaign you’re setting up.
As a default, we set 0.2. I’ll give a little bit an explanation.
Let’s say, for example, that the average bid you’re receiving is 0.10, and your bid adjustment estimate is also 0.10, we will look at the average bid over 10 clicks and then add your selected bid adjustment which is 10. And we will adjust your bid to 0.20. This is very good. This is what you asked us to do and we will do it.
In my business I always want to be the highest bidder. A keyword that at the moment is very cheap but is averaging just 10 cents right now might not be cheaper a week from now. It may be discovered by another competitor who will want to win that keyword simply because it’s very cheap right now, and might be happy to bid very high.
In the case that a competitor comes in and sets a default bid of 0.50 on that keyword, I will lose. I will lose my positioning, and among other things, I’ll lose velocity, which is not good for my overall Amazon organic rank.
In my business the minimum bid that I never go below, regardless of what my average might be, in this case, is $1. My minimum bid in my business is always $1. Depending on your niche, your account history, the data that you see in your account, or your average bid, you might have different values but for me, it’s $1.
In this case, I’ll input $1. This means that irrespective of what your average bid or average bid increment is, we will never set the bid below $1 for this campaign.