Amazon PPC is like an auction where you have to bid on your targeted keywords and the seller with the highest bid wins.
There are different types of bidding on Amazon:
Dynamic bidding (down only)
This type of bidding is most suited to those who are not yet familiar enough with Amazon PPC. It helps optimize ad spending and what it does is lower your bids up to 100% if there is a low possibility of a click turning into a sale.
Dynamic bidding (up and down)
This type of bidding is when Amazon increases your bid by up to 100% if there is a high possibility of making sales or lowers your bid up to 100% when it seems like there isn’t any room for conversions.
Fixed bids
With Fixed bids, you can choose a bid to be set as default, and no matter the conversions, the bid will not change irrespective of the adjustments made.
Rule-based bidding
Rule-based bidding is used to target a specific RoAS and the bidding is according to pre-set rules and conditions that sellers get to set themselves. The manual conditions that sellers can set are defined as “if/then” rules that can be used to trigger bid and keyword changes as and when the set conditions are met.