Introduction
Bids define your auction eligibility and cost per click—but the strategy behind those bids determines how much volume you win, how many conversions you capture, and how efficiently you spend. Choosing the wrong bid strategy (or sticking with a “default”) is one of the most common killers of profitability.
1) Strategy #1: Fixed Bids
You set a constant maximum bid; Amazon doesn’t adjust your bid based on conversion likelihood. AiHello+1
When to use: Launch campaigns needing control, or high-cost categories where margin matters most.
Risk: You may lose auction opportunities for high-intent placements or over-cap what you pay.
Tip: Use when you know your conversion mechanics are solid and you want predictability.
2) Strategy #2: Dynamic Bids – Down Only
Amazon can lower your bids whenever the algorithm predicts a low-conversion click. Amazon Ads+1
When to use: Discovery campaigns, early stage SKUs, or when you’re still validating targets.
Upside: Cost control.
Downside: You may under-bid high-intent clicks and slow volume growth.
3) Strategy #3: Dynamic Bids – Up & Down
Amazon can raise your bid (up to ~100%) for clicks likely to convert, and lower for low-intent clicks. SellerMetrics+1
When to use: Established winners, high-converting SKUs, aggressive scaling phases.
Risk: Costs shoot up if listing conversion, offer or targeting aren’t optimized.
Tip: Only switch to this once you have solid conversion data and retail readiness.
4) Strategy #4: Placement Adjusted Bids
Beyond base bid strategy, you can adjust bids by placement (Top of Search, Rest of Search, Product Pages) sometimes up to 900% for Top of Search. AMZScout+1
When to use: If you have high-intent keywords and strong CVR from premium placement.
Mistake: Many jump to high placement multipliers without checking if those placements convert—leading to wasted spend.
5) How to Pick & Execute Your Strategy
- Launch (Days 0-30): Fixed or Dynamic Down Only; minimal placement mods.
- Scale (Days 30-90+): Move winners into Dynamic Up & Down; test placement adjustments.
- Sustain/Defense: Use a mix—Fixed for low-margin SKUs; Up & Down/Placement for top SKUs with room to grow.
6) Weekly Monitoring & Adjustments
- Pull Search Term and Placement Reports; compare CPC, CVR, ACOS by strategy.
- If ACOS is trending worse without conversion improvement, you may be over-bidding or mis-targeting.
- Switch out strategy by campaign type—not mixing strategies in the same campaign (creates bid cannibalization).
- Re-calculate break-even ACOS after any listing/price changes and adjust base bid accordingly.
Final Thoughts
Bid strategy isn’t “set and forget.” It’s a dynamic lever that must align with SKU lifecycle, listing quality, margin, and campaign objective. Pick the right one, run it with data, monitor ruthlessly—and your Amazon Ads become a growth engine, not a cost center.
