In the ever-evolving landscape of Amazon advertising, even small updates can create massive shifts in campaign performance. One of the latest changes — and arguably one of the most important for advertisers — is Amazon’s rollout of performance-based suggested bid adjustments for top-of-search placements.
This feature is claimed to help sellers make their advertisements smarter and better. But like any tool, its effectiveness depends on how well it’s used.
Let’s talk about what this update is, why we care, how it works, and how to use it in order to maximize your Amazon advertising performance without throwing money away.
Understanding Amazon’s Suggested Bid Adjustments for Top-of-Search
Top-of-search positions are the top spots on the front of Amazon’s search results page. These top positions get the most views and clicks, and are therefore some of the most desirable real estate for advertisers.
In the past, you had to manually bid up or down to compete for top-of-search visibility, usually based on guesswork and sparse historical data. Amazon is now streamlining the process through automatic, performance-based bid suggestions based on your true campaign performance and aiming to advise you how much you should adjust your bids to get the most top-of-search exposure.
Why Amazon Added This Feature
There are definite reasons why Amazon has decided to introduce suggested bid adjustments for top-of-search.
First, it makes advertisers more effective by employing data-driven recommendations, which necessarily leads to greater ad spend. Second, it optimizes the profitability of top-of-search positions, which convert at two to three times the rate of other positions on the platform.
Lastly, it simplifies the ad management complexity so that small and medium-sized businesses can compete more effectively without requiring large, advanced ad teams.
How Suggested Bid Adjustments Operate
You now have the option to see auto-suggested bid changes for your campaigns if you click on your Amazon Ads Console. These automatically calculate using significant performance metrics such as prior click-through rates (CTR), conversion rate, number of sales within top-of-search placements, and spend effectiveness measurements such as Return on Ad Spend (ROAS) and Advertising Cost of Sales (ACOS).
For instance, if your initial bid on a Sponsored Products campaign is $1.00 and Amazon observes your top-of-search CTR and conversion rates being much better compared to others within the placements, it may imply a top-of-search adjustment of +80%. That would be establishing your effective top-of-search bid at $1.80, improving your chances of securing those highly prized top placements.
The Benefits of Suggested Bid Adjustments
One of the biggest benefits of this update is advertisers now have the ability to benefit from data-driven decision-making without having to digest complicated reports through manual analysis. Instead of following gut instincts or rigid rules, you can now make decisions on what is indeed occurring within your campaigns.
Another significant advantage is increased visibility. Because ads on top of search convert at a significantly higher rate than anywhere else, using suggested bid adjustments effectively can result in a dramatic increase in traffic and sales.
Time saved is another consideration. By taking the guesswork out and providing actionable recommendations right in the console, Amazon is helping to make it easier for advertisers — particularly small business owners — to quickly and easily optimize their ads. Lastly, it’s worth noting that these bid suggestions are not mandatory. Advertisers have complete control and can decide to implement, alter, or disregard the suggestions based on their tactical objectives.
Potential Risks and Drawbacks to Watch Out For
While this update has clear advantages, there are risks involved if not handled carefully. The first and most obvious danger is increased ad spend. Top-of-search placements are premium, and bidding too aggressively based on Amazon’s suggestions could cause your advertising costs to skyrocket without necessarily leading to profitable sales.
Another risk is misalignment between Amazon’s goals and your own. Amazon wants advertisers to spend more. You, on the other hand, want to earn more profit. Blindly following bid suggestions without analyzing your margins and lifetime value (LTV) could hurt your profitability.
There is also the potential for short-term data bias. Amazon’s recommendations are based on recent campaign data, but performance can vary seasonally or based on promotions, causing suggestions to become less relevant over time.
Real-World Examples: When to Apply Suggested Adjustments
Consider the case of a seller offering high-ticket kitchen appliances priced around $249 with a $100 profit margin per unit. Amazon suggests increasing the top-of-search bid by 50%. Given that the seller’s CTR and conversion rate at top-of-search are significantly better than other placements, applying the adjustment makes sense. The improved visibility is likely to boost sales profitably.
On the other hand, imagine a seller offering $9.99 phone cases with very thin profit margins. Even if Amazon suggests a 90% top-of-search adjustment, the slight improvement in conversion rate may not justify the additional ad spend. In such cases, applying the full suggested adjustment could lead to operating at a loss.
These examples highlight the importance of evaluating each suggested adjustment within the broader context of your product economics and campaign objectives.
Best Practices for Using Suggested Bid Adjustments
If you want to take advantage of this feature while minimizing risks, a few best practices can help:
Start with small increments rather than applying the full suggested increase immediately. Monitor your campaigns carefully and adjust bids gradually based on real performance over time.
Focus your bid adjustments primarily on high-margin products or products with strong customer lifetime value. Top-of-search visibility is powerful, but only if the underlying economics support higher advertising investments.
Closely watch key performance metrics such as CTR, ACOS, ROAS, and conversion rates specifically for top-of-search placements. This will help you quickly identify whether the adjustment is improving your profitability.
Use placement reports to cross-reference the performance of different placements before accepting any bid adjustments. Finally, consider setting portfolio budgets or campaign caps to prevent runaway spending if your bid adjustments scale too aggressively.
Final Thoughts: Smarter Advertising for the Win
Amazon’s introduction of suggested bid adjustments for top-of-search is a step toward more intelligent, data-driven advertising. Sellers who embrace this tool thoughtfully — by testing carefully, monitoring results, and prioritizing profitability — will be able to make the most out of this update.
However, it’s critical to remember that not every suggested bid is a good one. Amazon’s goals are not always your goals. Strategic, cautious application of this feature will help you leverage its benefits without falling into the trap of overspending.
In a highly competitive marketplace, success isn’t just about selling more. It’s about earning more from what you sell — and this new feature, if used wisely, can help you get there faster.
