Amazon ad bids

So I had published a few books before over 5 years or so, and I just plop them on kdp and they do whatever they can...and I made like 600$ in 2024. But I would like to make more sales, and I just published 2 more books I had been working on, so I tried Amazon ads.

I put daily budget at 5$. And bid at 0.2 with auto targeting. 1. Is that too low? 2. If the ad doesn't get clicked, does it deduct 0.2? How does it work?