Overview

Amazon has added new Seller University lessons that break down the bidding options available for Sponsored Products campaigns. Understanding the distinction between fixed bids, dynamic bidding (down‑only and up‑and‑down), and placement adjustments is crucial for sellers who want to keep ad spend predictable while maximizing profitable sales. The guidance helps advertisers choose the right approach based on campaign age, data availability, and performance goals.

Key Points

• Fixed Bids — The exact amount you set is used in every auction, delivering the most predictable cost structure; for example, a $1.20 bid will stay $1.20 regardless of the shopper’s likelihood to buy.
• Dynamic Bids – Down Only — Amazon automatically reduces the bid when its algorithm predicts a low conversion probability, such as a click from a shopper who only browses; this can cut wasted spend by up to 30 % in some tests.
• Dynamic Bids – Up and Down — The platform can raise the bid by as much as 100 % for top‑of‑search impressions and 50 % for other placements when it forecasts a high chance of purchase, potentially increasing impression share on high‑intent queries.
• Placement Adjustments — Sellers may apply percentage modifiers (0‑900 %) to specific ad locations, most commonly boosting bids for “top of search (first page)” or “product detail page” slots; a 50 % increase on top‑of‑search can lift visibility by roughly 15 % for well‑performing keywords.
• Data‑Driven Timing — Amazon recommends starting new campaigns with fixed bids or down‑only dynamic bids, then switching to up‑and‑down after two to four weeks of conversion data, ensuring the algorithm has enough signals to act reliably.

How Bidding Strategies Work

1. Set a Base Bid — Choose a monetary amount that reflects the maximum you’re willing to pay for a click; for instance, a $0.80 base bid on the keyword “organic cotton socks.”
2. Select a Bidding Mode — Pick Fixed, Down‑Only, or Up‑and‑Down; with Down‑Only, Amazon may drop the $0.80 to $0.50 on impressions it deems low‑intent, while Up‑and‑Down could lift it to $1.60 for high‑intent searches.