CPC’s are all relative, and usually, a lot of people’s individual feelings dictate their bidding than the numbers do.
2.50 * average 10% PPC conversion rate for a 20 dollar product means something is definitely out of whack. You can’t spend 25 bucks to sell something for 20 bucks. The real issue probably lies elsewhere (with CTR or conversion rate)
Is 2.50 much higher than the average? You bet. It’s about 3x the average. (Average CPC is about 0.85 (source, I see lots of data from within our PPC tool).
Instead of only looking at CPC’s, I would look at a few additional metrics.
1. Is your account structure set-up properly? Do you have the automatic-research to exact match winner’s circle strategy going? Are your products organized in a logical manner that maximizes visibility?
2. Then, what’s your ACOS? Is your ACOS acceptable or unacceptable? If you’re not hitting your target ACOS, you’re either showing up for terms you’re not converting for, or showing up for irrelevant terms and have a low CTR. Fixing these things is important. Average CTR on Amazon sponsored products about 0.32%, and average conversion rate is about 10%). if you’re way outside the norm and have an ACOS that you don’t like, something is up. Pare back your campaigns and get it under control. Do lots of search term analysis and be sure you’re showing up for only the terms you intend to.
3. Is 2.50 expensive? You bet. Share some additional info and I’m sure we’ll be able to point you in the right direction. 2.50 is expensive, but it might not be the reason PPC challenging right now.
Check out the average CPC, ACoS, and Sales for Ad Badger users.