Bid
The maximum you will pay for a click. Amazon runs a second-price auction, so you usually pay less than you bid.
Why it matters
Because it is second-price, your bid controls which auctions you enter rather than what you pay in each one. Raising a bid from $1.00 to $1.40 does not make every click cost 40% more, it makes you eligible for placements you were previously losing.
In practice
Layered on top are bidding strategies (down only, up and down, fixed) and placement modifiers, which can multiply your bid for top-of-search or product-page placements. 'Up and down' with an aggressive top-of-search modifier is powerful and can also run away with a budget quickly; introduce it deliberately and watch it for a week.
Related terms
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