What are dynamic bids up and down on Amazon?
Dynamic bids up and down on Amazon allow Amazon to increase your bid when an ad opportunity appears more likely to convert and reduce it when a conversion appears less likely. This can improve access to valuable placements, but it also raises the maximum CPC exposure. For a hiking boots keyword with a £0.90 base bid, Amazon may lower the bid to £0.45 for a weaker predicted opportunity or raise it above £0.90 for an opportunity that appears more likely to produce a sale. For Sponsored Products, Amazon states that increases can reach up to 100% for top-of-search placements and up to 50% for other placements. Placement bid adjustments can also apply, so calculate the combined exposure before choosing a base bid. A seemingly conservative base amount can become a materially higher effective bid when dynamic increases and placement adjustments work together. Use up-and-down bidding when a campaign has proven conversion data, sufficient margin, and a clear reason to compete more aggressively for stronger predicted opportunities. It may suit exact-match keywords with repeated profitable sales, important branded targets, or campaigns where top-of-search visibility produces a reliable return. Avoid enabling it broadly across untested targets. New keywords, loose match types, weak listings, and campaigns already above target ACoS can become more expensive when Amazon is allowed to increase bids. Test on a controlled group and compare results with the previous strategy. Start with a lower base bid than you would use under fixed or down-only bidding, especially when placement adjustments are active. Calculate the highest combined effective bid and confirm that the product's margin and conversion rate can support it. Monitor actual CPC, spend, ACoS, conversion rate, orders, and placement performance after the change. Use a defined test window and change log. If traffic increases without profitable sales, reduce the base bid, lower placement adjustments, return to down-only, or pause unsuitable targets.
Dynamic bids up and down let Amazon raise or lower bids based on predicted conversion likelihood. Learn the benefits, limits, and risks.