Every Sponsored Products campaign asks you to pick a bid strategy. Most sellers accept the default and never think about it again. That’s a mistake, because the strategy you choose changes how Amazon spends your money on every single auction. Here’s each option in plain English.
The three strategies
1. Dynamic bids — down only. Amazon lowers your bid in real time when a click looks less likely to convert. It never raises it. This is the safest option: you’ll rarely overpay, but you may miss some high-value placements.
2. Dynamic bids — up and down. Amazon can raise your bid (by up to 100% for top of search) when a click looks likely to convert, and lower it when it doesn’t. More aggressive, more reach — and it can spend faster than you expect.
3. Fixed bids. Amazon uses your exact bid every time, no adjustments. You get full control and predictable spend, at the cost of the algorithm’s help.
How to choose
- New or testing a campaign? Start with down only. It protects budget while you learn what converts.
- Proven, profitable keywords? Up and down can win more of the good traffic — once you know the terms convert.
- Need strict, predictable spend (tight budgets, defensive branded campaigns)? Fixed keeps things simple and controlled.
Then layer placement modifiers on top: you can bid more specifically for top-of-search or product-page placements. Bid strategy and placement work together.
The default isn’t wrong — it’s just not automatic. Pick the strategy that matches what each campaign is there to do.
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