There are different campaign types, but 80% of all Amazon sellers use Sponsored Products campaigns.
These campaigns offer several bidding options in Seller Central:
Also: Rule-Based Bidding
Let’s see what the differences are.
1. Dynamic bids - down only (Beginner)
The "Dynamic bids - down only" strategy on Amazon automatically lowers your bids when your ad is less likely to lead to a sale.
“Down only” bidding strategy can be a good choice because:
Prevents your ads from appearing in irrelevant searches
Keeps your ads targeted towards potential buyers more effectively
This can ultimately help you save money.
Beginner Tip:
When you first start advertising on Amazon, I recommend you to go with “Dynamic bids - down only” bidding strategy. This will help you control costs and avoid overspending when you kick off your first Amazon Ads and learn how they work.
Not sure how to decide on your bid amounts? Use the amount automatically suggested by Amazon or set it to minimum (which equals to roughly 50 cents).
2. Dynamic bids - up and down (Advanced)
The “up and down” bidding strategy means that Amazon raises and lowers your bids when your ad may be more or less likely to convert to a sale.
This approach is best for slightly more advanced users with higher budgets or those who are confident in their product’s conversion rates.
“Dynamic bids - up and down” lowers your bid when your ad is less likely to make a sale, similar to the "Down Only" option.
However, if your product is likely to sell, Amazon can increase your bid by 10%.
This bidding strategy keeps your ads competitive in searches where they have a good chance of success.
Be cautious, though—this approach can sometimes drive your bids too high.
3. Fixed bids (Beginner)
With “Fixed bids” bidding strategy, you set an exact amount you’re willing to pay for each click. Then Amazon uses your exact bid for all opportunities to display your ad.
Your bid remains unchanged unless you decide to modify it.
This bidding strategy might look easy—you just set your bids once and leave them. However, it has a downside. Your bid doesn't change, but your competitors' might. If they decide to pay more, your unchanged bid could mean your ads don't show up as often. This could lead to fewer people seeing your ads, which might result in fewer sales.
In short, this strategy is suitable for Amazon Ads beginners who want predictable costs BUT it’s less recommended than dynamic options because it lacks flexibility.
Rule-Based Bidding (NOT used by Adspert)
First, a disclaimer: Rule-based bidding is an Amazon tool that helps you automatically adjust your bids to align with your marketing goals, making it easier to manage your advertising campaigns.
Rule-based bidding is NOT used by Adspert. Adspert uses algorithmic bidding. The explanation below about rule-based bidding is here only for your better understanding of the whole picture.
Additional resources:
How Rule-Based Bidding Works
Set a specific goal in Amazon Advertising console, such as ROAS (Return on Ad Spend
Example, if you want to earn $5 for every $1 spent on ads, set a ROAS goal of 5.
Amazon adjusts your bids in real-time to try to increase conversions while sticking to your ROAS goal.
This means you don’t have to manually change your bids every time you want to optimize your campaign—it’s done for you.
Important Considerations:
System isn’t foolproof. Amazon doesn’t guarantee that it will always meet your ROAS target.
Rule disabling: If your campaign's ROAS falls below your target for 21 consecutive days (excluding special days like holidays), Amazon will automatically turn off the rule.
When this happens, your ads will switch back to the bidding strategy and targets you were using before.
Downsides of Rule-Based Bidding:
Time-consuming
Requires a lot of manual effort
In short, some sellers prefer rule-based bidding and to manually adjust their bids and settings for complete control. This approach can be more flexible, but it also requires much more involvement and time.
But honestly, who has the time for that?
Sellers who want to save time often use algorithmic bidding. Using an AI such as Adpert is like having an expert manage your ads to make every penny work harder, even while you're sleeping.