Most sellers don’t think twice about their default bid on Amazon. It’s that field you fill in when setting up a campaign — and then usually forget about.
But here’s the truth: that one number quietly controls how aggressive your ads are, how much you’re spending, and whether your campaign ever even gets off the ground. Set it wrong, and you’re either invisible or bleeding budget on garbage clicks.
I’ve seen sellers waste thousands simply because they didn’t understand what this setting actually does. So let’s clear that up — in plain English — and talk about when and how to adjust it so your ads stop wasting money.
What the Default Bid Really Does (and Why It Matters)
Think of the default bid as your campaign’s autopilot. It kicks in when you haven’t told Amazon how much to spend on something specific — a keyword, a product, a placement.
In manual campaigns, it’s your fallback bid if you don’t assign keyword-level values.
In automatic campaigns, it drives everything unless you take the time to adjust by match type.
Amazon calls it a “starting point,” but if you leave it unchecked, it can easily become the reason your ads underdeliver or overspend. Here’s how Amazon defines it.
Where You Set It — and How to Change It
You’ll set your default bid during ad group creation, usually without much thought. That’s the problem.
You can find it again later under:
Campaign Manager → Ad Group → Settings → Default Bid
This is one of the first places I go when auditing a struggling ad account.
What Happens When It’s Too Low
If your default bid is too low, Amazon treats you like background noise. You won’t get impressions. You won’t win the auction. Your product never gets seen. And when it does? You’re buried.
This is especially common with new sellers who are nervous about spending and try to “test the waters.” Fair enough — but you can’t gather data on a campaign no one sees.
What Happens When It’s Too High
Now flip it. You crank your default bid way up thinking you’ll dominate.
What actually happens? You start paying $2.50 a click for random traffic that doesn’t convert. Your ACoS blows up. Your daily budget evaporates before noon. You’re left wondering why this “profitable platform” is draining your margin.
So What’s a Smart Default Bid?
Short answer: it depends on your category, price point, and goals. But here’s where I usually start:
- $0.50–$0.75 — Testing low-competition or long-tail terms
- $0.85–$1.50 — Mid-tier products or when building traction
- $2.00+ — High-margin products in ultra-competitive spaces
Amazon gives you suggested bid ranges. Use them as a guide, not gospel. Trust your data, not the defaults.
The Danger in Auto Campaigns
If you’re running automatic campaigns — and a lot of sellers do — your default bid gets spread across all four targeting types:
- Close match
- Loose match
- Substitutes
- Complements
And unless you tell Amazon otherwise, it treats all of them equally. That’s a mistake.
You might pay the same for a spot-on keyword like “collagen powder for women” and a total mismatch like “collagen cookbook.” Both get the same default bid. Both cost you.
The fix? Use bid adjustments by targeting group to fine-tune. Raise your bid on close match. Drop it on complements unless they truly convert.
How Often Should You Change It?
Check it weekly if you’re just starting out or testing. Once your campaign stabilizes, monitor it monthly — or whenever you see a drop in impressions or a spike in wasted spend.
If you’re layering in keyword-level bids, consider lowering your default to avoid doubling up. You don’t want to pay more than necessary for filler traffic.
Not Sure What to Do With It? We’ll Help You Set It Right
At Space Command, we manage ad spend for sellers who are tired of guesswork. We look at the structure, the bids, the targeting — all of it. And yes, we fix default bids that are bleeding dollars or burying your product.
Want your campaigns built by people who do this all day, not someone winging it?
Talk to us — and let’s fix your ad foundation the right way.
FAQ
What is a default bid in Amazon PPC?
It’s the fallback per-click amount Amazon uses when no other bid is specified.
Is the default bid used in auto campaigns?
Yes — unless you manually adjust by targeting type, Amazon uses your default bid for all automatic targeting.
Should I change my default bid once I have keyword-level bids?
Definitely. Lower the default so you’re not overspending on non-priority terms.
What’s the danger of setting it too high?
You burn through budget on irrelevant clicks. High bids don’t guarantee conversions.
Can I ignore it once my campaign is running?
No — default bids affect your ongoing performance. Always keep an eye on it.