Dynamic bidding is used by Amazon to adjust your campaign bids to the probability of sales.
There are three options of dynamic bidding:
If Amazon considers that a click is not likely to convert for an ad, the bid is reduced by up to 100%.
If Amazon considers a click more likely to convert, it will raise it up to 100% to obtain placements at the top of the search results page or up to 50% for all other placements. While if it is less likely to convert, the bid will be reduced by up to 100%.
With this feature, dynamic bidding is deactivated and Amazon leaves your default bid as it is without adjusting it.
With “Adjust Bids by Placement” you allow Amazon to increase your bid by up to 900% to participate at the “Top of Search” and “Product Pages” placement auctions.
These ad placements can be divided in: