25/01/2023
This is a very common question, Amazon sellers ask and are confused about.
They mix things up, 𝗱𝘆𝗻𝗮𝗺𝗶𝗰 𝗱𝗼𝘄𝗻-𝗼𝗻𝗹𝘆 is a bidding strategy that adjusts your bids in real-time based on the probability of conversion, If the Amazon algorithm thinks that you are not going to convert during an auction it will reduce your bids by 100%. This is a very cost-effective method, but only works well with some sales history you have already built and Amazon has data to work with.
The same goes for 𝗱𝘆𝗻𝗮𝗺𝗶𝗰 𝗨𝗽 𝗮𝗻𝗱 𝗗𝗼𝘄𝗻 bidding strategy, the "𝗗𝗼𝘄𝗻" part is exactly the same as down-only bidding strategy but for "𝗨𝗽" part algorithm can increase your bids based on conversion probability.
"For 𝗧𝗼𝗽 𝗼𝗳 𝘀𝗲𝗮𝗿𝗰𝗵, they can Increase bids by 100%
"For 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗣𝗮𝗴𝗲𝘀, they can Increase bids by 50%."
So if we take the same example in the picture attached,
if you put 50% on product pages placement, it means you are willing to pay 50% more on product pages, lets's say you are bidding $1 as a base bid, so for product pages algorithm can increase the bids by 50% for product pages, so $1 bid will become $1.5 for bidding strategy "Dynamic Down-only"
for Dynamic up and down, you are allowing Amazon to increase the base bids by 100% for TOS, And 50% for product pages.
So your $1 bid will become $2 (100% increase) and then placement will be applied 50% so your overall bid Will become $3 for Top of Search.
and for product pages, $1 bid will be $1.5 (50% increase) nd then placement will be applied 50% so your overall bid Will become $2.25 for Product Pages.
Dynamic Up and Down with Placements Modifiers is a deadly combination and should be used carefully, otherwise, you will be wondering how the heck CPC is that much high.