Glossary

What is dynamic bids up and down in Amazon ads?

Dynamic bids up and down is a Sponsored Products bidding strategy in which Amazon raises your bid in real time when a click looks likely to convert, by up to 100% for top of search and up to 50% for other placements, and lowers it when a click looks unlikely to convert. The increase stacks on top of any placement adjustment.

Maximum increase
+100% top of search, +50% rest of search and product pages
Formula (top of search)
max bid = base bid x (1 + placement %) x 2
Worked example
₹10 bid, 50% TOS adjustment: up to ₹30 at top of search
Lowers bids too
Yes, like down only, for low-intent auctions

How up and down is calculated

Amazon starts with your keyword bid, applies the placement adjustment for the slot being auctioned, and then, under up and down, may raise the result by up to 100% if the slot is top of search, or up to 50% for rest of search and product pages. It may also lower the bid when it predicts a low chance of a sale.

Worked example: a ₹10 exact keyword with a 50% top-of-search adjustment. The placement adjustment makes the top-of-search bid ₹10 x 1.5 = ₹15. Up and down can double that to ₹30. On a product page with no adjustment, the maximum is ₹10 x 1.5 = ₹15. On a low-intent auction Amazon might enter at ₹7. So a keyword you think of as a ₹10 bid can cost ₹30 for its best clicks, which is often the answer when sellers ask why they are charged far more than they bid.

Whether that is good depends on conversion. If that keyword converts at 15% on a ₹1,499 product, a ₹30 click is ₹200 per order, an ACoS of 13%. If it converts at 3%, the same click is ₹1,000 per order and a 67% ACoS.

Why it matters

Up and down wins high-intent auctions you would otherwise lose, which is valuable on proven keywords and during sale events when competition at the top of search rises. It hands Amazon's model more of your budget per click where the model is confident.

It is also the main reason ACoS jumps without anyone changing a bid. Stacked on a high placement adjustment, it can triple the effective bid. Sellers reporting ACoS moving from 15% to 80% overnight often find up and down combined with placement multipliers behind it.

How to use it safely

  • Use it only on campaigns of proven exact keywords whose ACoS is well below break-even.
  • Lower the top-of-search adjustment when switching to up and down, since the two multiply.
  • Compare average CPC with the base bid a week after switching; a large gap with no ACoS gain means switch back.
  • Keep auto, broad and research campaigns on down only.
  • Check the placement report: if top of search does not convert better, the extra bid buys nothing.

Related pages

Frequently asked questions

What does dynamic bids up and down mean?

It is an Amazon Sponsored Products bidding strategy where Amazon can raise your bid by up to 100% at top of search and 50% elsewhere when a sale looks likely, and lower it when a sale looks unlikely.

How much can up and down raise my bid?

Up to double at top of search and one and a half times on other placements, on top of any placement adjustment. A ₹10 bid with a 50% top-of-search adjustment can reach ₹30.

Is dynamic bids up and down worth it?

On proven exact keywords with room under break-even ACoS, often yes. On new, broad or auto campaigns it usually raises CPC faster than it raises orders.

Why is my Amazon CPC higher than my bid?

Usually because of up and down bidding, a placement adjustment, or both. Under down only with no adjustment, the CPC cannot exceed your bid.

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