A formula for deriving a starting PPC bid mathematically rather than guessing: Revenue Per Click (RPC) = product price × conversion rate. Bid = RPC × target ACOS.
This gives a defensible starting bid for a keyword or target based on the economics of the specific product, rather than accepting a platform's suggested bid. A parallel formula covers budgeting: daily budget = break-even TACOS × daily revenue, with an assumed-TACOS variant for new launches that lack historical sales data (see Amazon Product Life Cycle (Launch, Expansion, Harvest)).
An equivalent framing of this formula, presented as a replacement for Amazon's own suggested bid: Starting Bid = Target ACoS × Product Price × Conversion Rate. Since Revenue-Per-Click (RPC) = Product Price × Conversion Rate, this collapses to Bid = Target ACoS × RPC — the same relationship, just computed from price and conversion rate directly rather than from a pre-derived RPC figure.
Conversion rate for the formula is pulled from Seller Central's Business Reports → ASINs tab → 'Unit Session Percentage,' not guessed or left at Amazon's suggested bid default. See Amazon PPC Auction Model for how this bid feeds the auction, and Daily Budget Formula (Target Units × Price × Target ACoS) for the companion budget-sizing formula.
Из тем: PPC Campaign Structure & Bidding