Formula
Placement-adjusted bid = base bid × (1 + adjustment ÷ 100)
Worked example
A $1.00 base bid with a 50% top-of-search adjustment becomes a $1.50 placement-adjusted bid. Under dynamic bids up and down, Amazon can then raise that amount by up to 100%, making the possible bid $3.00. The example excludes other bid modifiers and does not predict the CPC actually paid.
If your product supports only $1.20 per click at its target, the original $1.00 keyword bid is not enough information to judge the settings. Review the base bid, placement adjustment and bidding strategy together. A placement with a higher conversion rate may support a higher click cost, but that needs evidence from comparable traffic.
Why it matters for profit
Placement controls help align eligible bids with differences in click value. Calculate that value from sales per order, conversion rate and the product’s target ACoS. A placement’s observed ACoS is useful context, but changing the adjustment can also change the auctions and traffic mix, so the old result is not a forecast.
Amazon currently allows placement increases from 0% to 900% for top of search, rest of search and product pages. A 0% setting leaves the base bid unchanged; 900% means ten times the base bid before other applicable modifiers. Audience or other adjustments may also apply, so check the full campaign configuration rather than treating this simplified formula as the final auction limit.
Check it on your numbers
Related terms
Source: Amazon Ads guidance. Platform rules checked October 30, 2026.