Formula
Up-and-down upper bid, excluding other modifiers = placement-adjusted bid × 2
Worked example
With a $1.00 base bid and no placement or other adjustments, dynamic bids up and down can raise the bid to $2.00. Add a 50% placement adjustment and the placement-adjusted bid is $1.50; the dynamic upper amount can then reach $3.00. These amounts describe bid limits in the simplified setup, not the price of every click.
Dynamic bids down only can reduce a bid by up to 100% but does not raise it. Up and down can increase or decrease by up to 100% at all placements under Amazon’s current guidance. Fixed bidding does not apply that dynamic conversion adjustment, although separately configured placement adjustments still apply.
Why it matters for profit
Amazon’s conversion estimate is not your product’s contribution margin. A higher chance of an order does not establish that the increased click cost leaves enough money after fees and landed cost. Choose a product target and review the combined upper bid before enabling a strategy that can raise the amount entered in the bid field.
The Placement Bid Calculator helps compare settings with observed click value, using the assumptions you provide. It does not know Amazon’s auction-by-auction conversion predictions or predict the traffic a new strategy will buy. Audience and other eligible modifiers can also affect bids beyond this example, so confirm them in the campaign and monitor actual CPC and product-level results after a change.
Check it on your numbers
Related terms
Source: Amazon Ads guidance. Platform rules checked October 30, 2026.