{"id":9335,"date":"2024-06-25T07:19:21","date_gmt":"2024-06-25T07:19:21","guid":{"rendered":"https:\/\/www.amzonestep.com\/blog\/?p=9335"},"modified":"2025-07-11T18:14:08","modified_gmt":"2025-07-11T18:14:08","slug":"ad-bidding-strategies-every-amazon-seller-should-know","status":"publish","type":"post","link":"https:\/\/www.amzonestep.com\/blog\/ad-bidding-strategies-every-amazon-seller-should-know\/","title":{"rendered":"Ad Bidding Strategies Every Amazon Seller Should Know?"},"content":{"rendered":"

We’ll answer that question for you today as we go over the ins and outs of each bidding plan and provide examples of when to use each one. To optimize or scale your Amazon Ads campaign, you change your bids, not your budget. This is a typical misunderstanding in the Amazon Ads world.<\/span><\/p>\n

What we mean by “bids” is the amount of money you are willing to spend to get someone to click on one of your Amazon ads.<\/span><\/p>\n

The advertiser sets the bid for each keyword, ASIN, or area they want to target. As a result of who sees your ad and how likely it is that a sale will happen from that person, your bidding strategy affects how, if at all, Amazon’s algorithm changes your price. Difficult stuff, right?<\/span><\/p>\n

Increasing a Campaign’s budget won’t help you grow. Cutbacks on a Campaign’s budget won’t help you optimize or cut down on useless ad spend either. The only thing that can do that is bids.<\/span><\/p>\n

Not wasting any more time, let’s take a closer look at each bidding strategy and pick the best one for your projects.<\/span><\/p>\n

Read More:\u00a0Mastering Amazon PPC: Strategies for Maximizing Your Advertising ROI<\/a><\/em><\/p>\n

Dynamic Bids \u2013 Down Only<\/strong><\/h2>\n

You should use this bidding technique if you don’t want to spend too much money on Amazon Ads.<\/span><\/p>\n

Choosing this bidding approach means you allow <\/span>Amazon FBA<\/b> to LOWER your bid right now if the algorithm thinks that a click on your ad is not likely to lead to a sale of the book you are advertising.<\/span><\/p>\n

Although Dynamic Bids Down Only is a good safety net because it lets Amazon lower your bid for you, the biggest problem I’ve found with it is that Amazon will almost always lower your bid to almost nothing if the book being offered hasn’t sold very many copies in the past.<\/span><\/p>\n

This happens because there isn’t much proof that your book sells well. This also applies to newly released books: if Amazon doesn’t see proof that your book sells well, they will automatically lower your bid, making it hard to get noticed.<\/span><\/p>\n

When To Use Dynamic Bids Down Only<\/strong><\/h3>\n

With Dynamic Bids Down Only, you can try out <\/span>Amazon Ads<\/span><\/a> even if your book has been selling well through other channels of marketing or advertising, like Facebook Ads.<\/span><\/p>\n

The best way to bid is different if you have a brand-new book or a book that doesn’t sell very well. We’ll talk about that soon.<\/span><\/p>\n

Dynamic Bids Down Only can be a good choice if you want to bring down the bids on an Amazon Ads campaign that has been doing well with one of the other bidding strategies but you’d like to make it a little more profitable.<\/span><\/p>\n

Read More:\u00a0What Are Some Current Ways To Boost Sales on Amazon in 2024?<\/a><\/strong><\/em><\/p>\n

Dynamic Bids \u2013 Up and Down<\/strong><\/h2>\n

You can let Amazon LOWER your bids when its algorithm thinks a click is less likely to lead to a sale and INCREASE your bids when it thinks a click is more likely to lead to a sale. This is similar to the Dynamic Bids Down Only bidding technique.<\/span><\/p>\n

Do not forget that <\/span>Amazon FBA<\/b> can raise your bids by up to 100% with Dynamic Bids Up and Down. However, it is allowed to raise it that much. A $1,000 bid, for instance, might go up to $2,000, which makes your Amazon ads much more expensive.<\/span><\/p>\n

If you don’t keep a close eye on performance, this rise in your bids can make Dynamic Bids Up and Down an expensive way to bid that can get out of hand over time.<\/span><\/p>\n

When To Use Dynamic Bids Up and Down<\/strong><\/h3>\n

It’s not something we want to do by hand, and it’s not possible to do it by hand on a per-click basis either! For better results, let Amazon’s system decide when to raise and lower your bid.<\/span><\/p>\n

If one to two weeks after moving a campaign to Dynamic Bids Up and Down, it stops working well and makes too little money for you, go back to the way things were.<\/span><\/p>\n

Dynamic Bids Up and Down is a great choice when you want to reach more people with a campaign that is already working well and sell more books.<\/span><\/p>\n

Fixed Bids<\/strong><\/h2>\n

Final Bids are the last bidding tactic. By choosing this choice, you don’t use Amazon’s algorithm at all, unlike the first two bidding strategies.<\/span><\/p>\n

By doing this, you are stopping Amazon from changing your bids at all. Your price is $0.50 for a keyword. <\/span>Amazon FBA<\/b> won’t make it cheaper or more expensive. In the Amazon Ads auction, your whole price is calculated.<\/span><\/p>\n

While using Dynamic Bids Down Only, a $0.50 bid might change to a $0.23 bid, a $0.48 bid, or even a $0.01 bid. Fixing bids gives you full control over how competitive you are in the Amazon Ads sale.<\/span><\/p>\n

One word of caution about Fixed Bids, though, before you change all of your campaigns to use this bidding technique. Regular Fixed Bids will usually use up a lot of a campaign’s daily cash.<\/span><\/p>\n

If Amazon usually only spends a small part of the budget you give it, switching to Fixed Bids could cause your campaign costs to go up by a lot.<\/span><\/p>\n

Read More: Million Dollar Question: How to optimize PPC Campaigns?<\/a><\/strong><\/em><\/p>\n

When To Use Fixed Bids<\/strong><\/h3>\n

Always use Fixed Bids when you first start an Amazon Ads campaign for a brand-new book. If you want to use <\/span>Amazon Ads<\/span><\/a> to promote an old book that hasn’t been selling well for a while and has a low bestseller rank (over 50,000), make sure that all of your ads use Fixed Bids.<\/span><\/p>\n

If you use any of the other bidding tactics, <\/span>Amazon FBA<\/b> is likely to keep lowering your bids because they don’t have enough data and proof of sales. This means that your campaigns will take a LONG time to get going.<\/span><\/p>\n

There’s no doubt that this is an aggressive bidding strategy, so keep a close eye on how your Fixed Bid ads are doing to make sure they’re not spending all of your money and not making any sales.<\/span><\/p>\n

How Does Amazon PPC Bidding Work?<\/strong><\/h2>\n

Sellers only get paid when someone hits on their ad in Sponsored Products, Sponsored Brands, or Sponsored Display. This is called “cost-per-click” pricing.<\/span><\/p>\n

That seller who wins the ad space on product listings is chosen by a bidding system. Two-Price Auction rules say that the person who bids the most will only have to pay an extra $0.01 over the person who bid the next most.<\/span><\/p>\n

In an auction, sellers try to win by making a list of related keywords and product targets and then bidding at the level of those targets. People who want to sell something are ready to pay as much as possible for someone to click on a related ad.<\/span><\/p>\n

The seller may pay less than the amount they said they would, though, so the bid amount isn’t always the same as the amount they were offered. As well as the goal level bid, <\/span>Amazon FBA<\/b> looks at a lot of other factors, so the winner of the auction might not have to bid the most to get the first spot.<\/span><\/p>\n

Many factors are used to choose and rank approved ads, such as relevance, ad rank (which is based on how quickly the product sells), conversion rate, and click-through rate. Many times, this means that sellers with more experience pay less per click in the sale than sellers with less experience.<\/span><\/p>\n

Read More:\u00a0How Does The New Seller Guide Affect Amazon FBA Sales In 90 Days?<\/a><\/em><\/strong><\/p>\n

Mistakes To Be Avoided<\/strong><\/h2>\n

If you want to compare results, don’t run “Down Only” and “Up and Down” ads at the same time. They will be competing in the same auction. Don’t compare a new “Down Only” campaign to an old “Up and Down” campaign. The “Down Only” campaign has more data and will probably do better.<\/span><\/p>\n

For new campaigns, don’t use the “up and down” dynamic bidding approach because the Amazon algorithm can make wrong predictions when there isn’t enough data, which wastes money on ads.<\/span><\/p>\n

If you want to play around with Amazon’s pay-per-click (PPC) bidding strategies, you need to know about the formulas and data sets that power its bidding optimization decisions. Let’s get into it more. Amazon mainly looks at three sets of statistics to figure out the Chances of Conversion:<\/span><\/p>\n