Amazon sponsored products placed using three different bidding strategies, dynamic bids - down only, dynamic bids up & down, & fixed bids. Learn more.
There are three different bidding strategies available for Sponsored Product campaigns. The strategy you choose will apply to all bids in your campaign. The options are dynamic bids (down only), dynamic bids (up and down), and fixed bids.
Sponsored Products operate on a PPC, or pay-per-click, basis. You bid on certain keywords in order to appear in specific searches related to your products. You will need to select one of these bidding strategies to start bidding. Each of these will affect how you are able to bid on specific keywords.
There are other aspects to bidding on Amazon. You also want to adjust your bids by placement, for instance. In terms of the bidding amount, however, the following are the options available to sellers:
Amazon sellers can automate the bidding process for keywords they are targeting through the use of dynamic bidding. This feature provides sellers with a flexible way to control the process without forcing them to manually input every bid.
There are several types of dynamic bidding options available, including down only, up and down, and fixed bidding.
By selecting “down only,” Amazon lowers your bid in every keyword auction when your ad is less likely to convert. Old campaigns from before January 2019 all use this bidding strategy.
An example of Dynamic Bidding is as follows: let’s say you place a bid at $1.30. If Amazon decides this bid is less likely to convert for your ad, the bid will be lowered accordingly.
With Amazon down only bidding, the platform makes real-time decisions about the likelihood of conversion from your keywords.
By selecting “up and down,” Amazon will have the authority to both lower and raise your bid in real-time. The amount and the timing of the changes will be based upon the probability of converting clicks into sales. This strategy gives Amazon permission to raise your bids up to 100% for search results and up to 50% for product pages.
The “fixed bids” strategy means that Amazon cannot adjust your bids. So, if your bid is set at $0.30, it will stay at this price regardless of changes in the keyword’s likelihood to convert a sale. This option gives you the control to adjust your bids manually or leave your bids at their set price.