Amazon PPC Bidding Strategies: How to Choose Between Fixed and Dynamic Bids
Amazon Seller University now includes lessons on Fixed Bids, Dynamic Bids (Down‑Only and Up‑and‑Down) and Placement Adjustments. Fixed bids stay constant, while Down‑Only can cut bids up to 30% and Up‑and‑Down can raise them up to 100% for top‑of‑search. Amazon advises starting new campaigns with Fixed or Down‑Only and switching to Up‑and‑Down after 2‑4 weeks of conversion data.
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
- 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.”
- 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.
Analysis & Recommendations
Why This Matters
Understanding the new bidding options lets sellers keep ad spend predictable while boosting ROI. For example, a 20% top‑of‑search boost can lift visibility 15%, and switching to Up‑and‑Down after 30 conversions can raise impression share on high‑intent queries.
Key Takeaways
- Dynamic Bids – Down Only can reduce bids by up to 30% on low‑intent impressions.
- Dynamic Bids – Up and Down can increase bids up to 100% for top‑of‑search and 50% for other placements.
- Placement modifiers can be set between 0‑900%; a 50% boost on top‑of‑search typically lifts visibility ~15%.
- Amazon recommends moving from Fixed/Down‑Only to Up‑and‑Down after 2‑4 weeks once at least 30 conversions are recorded.
Recommended Actions
- →In Seller Central > Advertising > Campaign Manager, create new Sponsored Products campaigns using Fixed or Down‑Only bids for the first two weeks.
- →After 2‑4 weeks and ≥30 conversions per keyword, edit the campaign to select Up‑and‑Down dynamic bidding.
- →Add a placement modifier (e.g., +30% for ‘Top of Search’) in the campaign’s ‘Placement Adjustments’ tab and monitor weekly ACOS in the Placement Pe...
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