Numerous studies have shown that around 70% of purchases on Amazon are made from products that appear in the top 10 search results. To address this, Amazon has developed a powerful feature that allows us to relinquish control over bid management to optimize our visibility in Amazon search results.
However, many sellers I've encountered in consultation calls do not use this powerful tool correctly, resulting in losing control over their bids and turning profitable campaigns into losses.
Here are some guidelines for using placements effectively:
Which campaigns should you manage placements for?
Campaigns with low or balanced ACoS (Advertising Cost of Sales).
Campaigns with a fixed bid management strategy.
Which campaigns should you not manage placements for?
Up and Down bid management strategy campaigns.
Main Keywords campaigns (with strong keywords that may go out of control).
The idea is to essentially allow Amazon to put us on the stage in the top search results while maintaining full control over the average bid (CPC) at any given time. So, if you change the placements percentages, return after 5 days and observe what it has done to your bids and whether there is a change in results. If there is, adjust the bid for the keyword accordingly to gain maximum control.