A formula for calculating a starting keyword bid instead of accepting Amazon's suggested bid:
Starting Bid = Target ACoS × Product Price × Conversion Rate
The presenter is explicit that Amazon's own suggestion should be overridden: "I can tell you with certainty the answer is no do not use Amazon suggested bid" — Amazon's suggestion optimizes for filling the auction, not for hitting your margin target.
Pull the real conversion rate from Seller Central → Business Reports → ASINs tab, reading the "Unit Session Percentage" column. That figure is the conversion-rate term plugged into the formula — don't estimate it.
The computed number is a starting bid, not your expected cost per click: "your bid doesn't equal your cost per click, it just tells Amazon whether or not you're in the game." Actual CPC is set at auction (see Amazon PPC Auction Model) and typically comes in below the bid.
Related: Revenue-Per-Click (RPC) Bid Formula, a different bid formula built from revenue-per-click rather than target ACoS.
Из тем: PPC Campaign Structure & Bidding