Understanding Amazon’s Bidding Strategies
Amazon PPC offers sellers several bidding strategies that directly affect how ads perform. Whether you’re using dynamic bidding or fixed bidding, choosing the right Amazon bidding strategy impacts how your budget is spent, how aggressively you win placements, and ultimately—how profitable your ads are.
In this guide, we’ll compare Dynamic Bids (Up & Down and Down Only) vs Fixed Bids, explore when to use each, and share real-world examples so you can decide what’s best for your campaigns.
What Are the Different Amazon Bidding Strategies?
Amazon offers three bidding strategies within Sponsored Products campaigns:
- Dynamic Bids – Down Only
- Dynamic Bids – Up and Down
- Fixed Bids
Each bidding model influences how Amazon adjusts your bid in real time based on the likelihood of conversion.
1. Dynamic Bids – Down Only
How it works:
Amazon lowers your bid when it predicts your ad is unlikely to convert.
Example:
If your bid is $1.00 and Amazon predicts low conversion, it may reduce it to $0.60 to protect your budget.
Best For:
- Lower-risk campaigns
- Testing new products
- Early-stage campaigns with limited data
Pros:
- Cost-efficient
- Protects budget
- Ideal for conservative bidding
Cons:
- May limit visibility
- Less aggressive in competitive niches
2. Dynamic Bids – Up and Down
How it works:
Amazon adjusts your bid up to +100% for top placements and down when conversions seem unlikely.
Example:
If your default bid is $1.00, Amazon may raise it to $2.00 for a highly relevant top-of-search opportunity.
Best For:
- High-performing products
- Competitive, high-converting keywords
- Seasonal campaigns needing aggressive growth
Pros:
- Maximizes visibility on high-converting searches
- Dynamic response to real-time buyer intent
Cons:
- Risk of high spend
- Can drain budget if not monitored closely
3. Fixed Bids
How it works:
Your bid stays exactly as set. No adjustments by Amazon.
Example:
Bid is $1.00? Amazon won’t touch it—whether the placement is promising or not.
Best For:
- Niche, low-competition products
- Tight budgets and strict cost control
- When you want total control
Pros:
- Predictable ad costs
- Full control over bidding
Cons:
- No flexibility
- Missed opportunities if bid is too low
Dynamic vs Fixed Bids: Side-by-Side Comparison of Bidding Strategies
| Feature | Dynamic (Down Only) | Dynamic (Up & Down) | Fixed Bids |
| Real-time adjustments | ✔️ Yes | ✔️ Yes | ❌ No |
| Bid Increases | ❌ No | ✔️ Yes (+100%) | ❌ No |
| Budget control | ✔️ High | ⚠️ Medium | ✔️ High |
| Conversion targeting | ⚠️ Moderate | ✔️ High | ❌ None |
| Ideal for | Budget-conscious sellers | Aggressive growth | Manual control fans |
When to Use Each Bidding Strategy: Use-Case Examples
✅ Use Dynamic – Down Only When:
- Launching a new product
- Collecting data without overspending
- Running automated campaigns with broad targeting
Example:
You’re testing a new ASIN with no reviews. You want to show ads but avoid overpaying. “Down only” helps minimize losses while gathering early performance data.
✅ Use Dynamic – Up and Down When:
- You’ve identified high-converting keywords
- You’re scaling a bestseller
- You want to dominate top-of-search positions
Example:
Your hero product converts at 18%. You enable “Up and Down” so Amazon increases your bid when there’s a strong chance to win a sale at premium placements.
✅ Use Fixed Bids When:
- You know your exact break-even ACoS
- You’re advertising in a low-competition niche
- You need predictable costs for budgeting
Example:
You sell a niche replacement part. You set your bid at $0.75 and use Fixed Bids to maintain strict cost control.
Bid Smarter with Bidventor
Managing bid strategies manually is time-consuming—and risky without enough data. That’s where Bidventor gives you the edge.
Bidventor is an AI-powered Amazon PPC tool that:
- Tracks real-time performance per keyword and ASIN
- Automatically shifts bids between dynamic and fixed depending on results
- Protects your budget while boosting conversions
Example:
Bidventor detects “Fixed Bids” working better for one ASIN while “Up and Down” outperforms for another. It auto-adjusts the strategy to match each ASIN’s behavior.
Final Thoughts: Choose the Right Strategy, Not the Popular One
There’s no one-size-fits-all answer in Amazon PPC. The best bidding strategy depends on your product, goals, and campaign maturity.
- Choose Down Only for safer testing
- Use Up & Down to scale known winners
- Stick to Fixed Bids for full cost control
And if you want the smartest path forward?👉 Let Bidventor manage it for you—dynamically, intelligently, and profitably.
