Key KPIs for Amazon Bid Optimisation
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Quick answer
Amazon bid optimisation KPIs are the performance signals used to decide when to raise, lower, or hold keyword and product targeting bids. The most important include ACoS, ROAS, wasted spend, impressions, clicks, sales, CPA, and conversion rate. These metrics show whether ad spend is producing profitable orders or leaking into clicks that do not convert. Monitoring them together helps advertisers move from broad bid changes to targeted adjustments based on account-level evidence, rather than reacting to a single number in isolation.
If you are already reviewing Amazon Ads search term reports but still choose bid changes by feel, this page explains which KPIs to watch and how to combine them. It also covers where wasted spend fits into the decision process, so you can prioritise profitable adjustments instead of cutting budget across the board.
Core KPIs to Track in Amazon Ads
Amazon reports surface many metrics, but bid optimisation typically depends on a small set of signals. ACoS measures ad spend as a percentage of attributed sales, while ROAS shows the revenue generated for each dollar spent. Conversion rate and CPA indicate whether clicks result in orders and how much each order costs. Impressions and clicks show whether your bid is competitive enough to earn visibility, and wasted spend highlights clicks that did not convert.
- ACoS — compare it with product margin to judge profitability.
- ROAS — a quick read on whether revenue supports current spend.
- Wasted spend — flags high-click, no-sale targets for negative keywords or bid cuts.
- Conversion rate and CPA — reveal post-click efficiency and order cost.
How to Act on ACoS, ROAS, and Wasted Spend
A single ACoS number can mislead without ROAS and order volume. A low ACoS on very few clicks may not mean a campaign is scalable; a higher ACoS can be acceptable for launch visibility. ROAS gives the inverse view, so a 4.0 ROAS equals 25% ACoS. Use both against your product margin to define a break-even threshold before changing bids.
When ROAS is above target, bids may have room to increase for more impressions. When ACoS climbs above your profit tolerance, reduce specific bids or add negative keywords before pausing an entire campaign. The Amz Ad Waste Detector organises raw auction data around spend below target ROAS and provides a cleanup plan for bid reductions and negative keywords.
When These KPIs Matter Most
These metrics become especially important when a campaign has enough click data to show patterns but not enough profit to ignore inefficiencies. A product with tight margins should trigger action on wasted spend sooner than a high-margin launch where visibility is still the priority. If you manage multiple accounts or marketplaces, consistent KPI tracking also prevents underperforming targets from hiding inside aggregate reports.
Use Amazon Ads search term reports to see which search terms drive sales and which only consume budget. Tools that centralise KPI tracking and cleanup plans can reduce the manual work, but the bid decision itself should still be reviewed by the account owner before changes go live.
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Related guides
Once these KPIs are tracked consistently, the next step is applying them to product targeting bid changes. For a broader look at how these signals work together, see the main guide on Amazon product targeting bid optimisation and the metrics that matter.