Dynamic vs Fixed Bids: What’s the Best Bidding Strategies for Amazon Sellers?

Understanding Amazon’s Bidding Strategies

Amazon PPC offers sellers several bidding strategies that directly affect how ads perform. Whether you’re using dynamic bidding or fixed bidding, choosing the right Amazon bidding strategy impacts how your budget is spent, how aggressively you win placements, and ultimately—how profitable your ads are.

In this guide, we’ll compare Dynamic Bids (Up & Down and Down Only) vs Fixed Bids, explore when to use each, and share real-world examples so you can decide what’s best for your campaigns.

What Are the Different Amazon Bidding Strategies?

Amazon offers three bidding strategies within Sponsored Products campaigns:

Dynamic Bids – Down Only
Dynamic Bids – Up and Down
Fixed Bids

Each bidding model influences how Amazon adjusts your bid in real time based on the likelihood of conversion.

1. Dynamic Bids – Down Only

How it works:
Amazon lowers your bid when it predicts your ad is unlikely to convert.

Example:
If your bid is $1.00 and Amazon predicts low conversion, it may reduce it to $0.60 to protect your budget.

Best For:

Lower-risk campaigns
Testing new products
Early-stage campaigns with limited data

Pros:

Cost-efficient
Protects budget
Ideal for conservative bidding

Cons:

May limit visibility
Less aggressive in competitive niches

2. Dynamic Bids – Up and Down

How it works:
Amazon adjusts your bid up to +100% for top placements and down when conversions seem unlikely.

Example:
If your default bid is $1.00, Amazon may raise it to $2.00 for a highly relevant top-of-search opportunity.

Best For:

High-performing products
Competitive, high-converting keywords
Seasonal campaigns needing aggressive growth

Pros:

Maximizes visibility on high-converting searches
Dynamic response to real-time buyer intent

Cons:

Risk of high spend
Can drain budget if not monitored closely

3. Fixed Bids

How it works:
Your bid stays exactly as set. No adjustments by Amazon.

Example:
Bid is $1.00? Amazon won’t touch it—whether the placement is promising or not.

Best For:

Niche, low-competition products
Tight budgets and strict cost control
When you want total control

Pros:

Predictable ad costs
Full control over bidding

Cons:

No flexibility
Missed opportunities if bid is too low

Dynamic vs Fixed Bids: Side-by-Side Comparison of Bidding Strategies

Feature	Dynamic (Down Only)	Dynamic (Up & Down)	Fixed Bids
Real-time adjustments	✔️ Yes	✔️ Yes	❌ No
Bid Increases	❌ No	✔️ Yes (+100%)	❌ No
Budget control	✔️ High	⚠️ Medium	✔️ High
Conversion targeting	⚠️ Moderate	✔️ High	❌ None
Ideal for	Budget-conscious sellers	Aggressive growth	Manual control fans

When to Use Each Bidding Strategy: Use-Case Examples

✅ Use Dynamic – Down Only When:

Launching a new product
Collecting data without overspending
Running automated campaigns with broad targeting

Example:
You’re testing a new ASIN with no reviews. You want to show ads but avoid overpaying. “Down only” helps minimize losses while gathering early performance data.

✅ Use Dynamic – Up and Down When:

You’ve identified high-converting keywords
You’re scaling a bestseller
You want to dominate top-of-search positions

Example:
Your hero product converts at 18%. You enable “Up and Down” so Amazon increases your bid when there’s a strong chance to win a sale at premium placements.

✅ Use Fixed Bids When:

You know your exact break-even ACoS
You’re advertising in a low-competition niche
You need predictable costs for budgeting

Example:
You sell a niche replacement part. You set your bid at $0.75 and use Fixed Bids to maintain strict cost control.

Bid Smarter with Bidventor

Managing bid strategies manually is time-consuming—and risky without enough data. That’s where Bidventor gives you the edge.

Bidventor is an AI-powered Amazon PPC tool that:

Tracks real-time performance per keyword and ASIN
Automatically shifts bids between dynamic and fixed depending on results
Protects your budget while boosting conversions

Example:
Bidventor detects “Fixed Bids” working better for one ASIN while “Up and Down” outperforms for another. It auto-adjusts the strategy to match each ASIN’s behavior.