How to Boost Sales with Amazon Retargeting Ads (2024 Sellers Guide)

  • #Scale Insights Team
amazon ppc strategies amazon ppc strategy amazon retargeting ads
amazon retargeting ads

Are you struggling to convert one-time visitors into loyal customers on Amazon? Many sellers face the hurdle of capturing interest only to lose it amidst the digital noise. Amazon retargeting ads could be the answer to this common issue, providing a strategic way to reach out to potential customers who have already shown interest in your products but haven't made a purchase. 

This guide will walk you through the essentials of setting up and running a successful Amazon retargeting campaign. You'll learn how to track visitors to your Amazon listings, develop personalized ad experiences to re-engage them, and ultimately, turn those warm leads into sales. By tapping into the power of retargeting, you're not just recapturing lost traffic—you're building a more robust, more resilient sales strategy. 

Read on to unlock the potential of retargeting ads and see a tangible increase in your Amazon sales.

What are Amazon Retargeting Ads?

Retargeting is a marketing strategy used to target customers who have previously interacted with a product or service. In the Amazon ecosystem, retargeting allows sellers to target customers who have previously viewed or added products to their cart but did not complete the purchase.

How Amazon Retargeting Ads Work

Amazon Retargeting Ads work by using cookies and pixels to track customer behavior on the Amazon website. When a customer views a product, a cookie is placed on their browser, which allows Amazon to track their behavior. If the customer does not purchase the product, Amazon can then use this data to retarget them with ads for the same or similar products.

Benefits of Amazon Retargeting Ads

Amazon Retargeting Ads have several benefits for sellers. Firstly, they allow sellers to target customers who have already shown an interest in their products, increasing the chances of a conversion. Secondly, they can help to increase brand awareness and visibility, as retargeted ads are shown to customers who have already interacted with the brand. Finally, Amazon Retargeting Ads can be highly targeted, allowing sellers to reach customers who are most likely to convert.

Setting Up Amazon Retargeting Campaigns

Retargeting campaigns on Amazon can be a highly effective way to reach potential customers who have already shown interest in your products. By using retargeting ads, you can remind customers of products they have viewed or placed in their cart, encouraging them to complete their purchase. Here are some steps to help you set up your Amazon retargeting campaigns.

Campaign Goals and Targeting Options

Before setting up your retargeting campaign, it's important to identify your campaign goals and target audience. Amazon offers several targeting options such as targeting based on product views, add-to-cart events, and purchase history. You can also target customers who have viewed similar products to yours or those who have purchased from your competitors.

To optimize your campaign, choose the right targeting option that aligns with your campaign goals. For example, if your goal is to increase sales, targeting customers who have placed items in their cart but haven't completed the purchase can be an effective strategy.

Creating Compelling Ad Content

To make your retargeting ads stand out, create compelling ad content that resonates with your target audience. Use high-quality images and clear, concise copy to showcase your products and highlight their unique features. Additionally, consider using promotions or discounts to incentivize customers to complete their purchase.

When creating your ad content, keep in mind that Amazon has strict guidelines for ad content. Make sure to follow their policies to avoid rejection of your ads.

Budgeting and Bidding Strategies

Setting a budget and bidding strategy is an important step in setting up your retargeting campaign. Amazon offers two bidding options: dynamic bids and fixed bids. Dynamic bids adjust your bid based on the likelihood of a conversion, while fixed bids keep your bid constant throughout the campaign.

To optimize your budget, monitor your campaign performance regularly and adjust your bids accordingly. You can also set a daily budget to limit your spending and ensure you don't exceed your budget.

Optimizing Amazon Retargeting Ads

Retargeting ads are a powerful tool for driving sales on Amazon. By targeting customers who have already shown interest in your product, you can increase the chances of converting them into buyers. However, to get the most out of your retargeting campaigns, you need to optimize them for maximum performance. Here are some tips to help you do just that.

Key Performance Indicators

To optimize your retargeting ads, you need to know what metrics to track. Some key performance indicators (KPIs) to consider include:

  • Click-through rate (CTR): This measures the percentage of people who click on your ad after seeing it.

  • Conversion rate: This measures the percentage of people who make a purchase after clicking on your ad.

  • Return on ad spend (ROAS): This measures how much revenue you generate for every dollar spent on advertising.

By tracking these metrics, you can identify which ads are performing well and which ones need improvement.

A/B Testing for Ad Optimization

A/B testing is a powerful technique for optimizing your retargeting ads. It involves creating two versions of an ad and testing them against each other to see which one performs better. Some elements you can test include:

  • Ad copy: Try different headlines, descriptions, and calls to action.

  • Images: Test different product images or lifestyle shots.

  • Targeting: Experiment with different audience segments to see which ones are most responsive.

By testing these elements, you can identify which ad variations are most effective and refine your campaigns accordingly.

Leveraging Customer Insights

To create effective retargeting ads, you need to understand your customers' behavior and preferences. One way to do this is by analyzing customer data and feedback. Some insights to consider include:

  • Purchase history: Look at what products your customers have bought in the past to identify cross-selling opportunities.

  • Search history: Analyze what keywords your customers are searching for to inform your ad targeting.

  • Reviews and feedback: Pay attention to what customers are saying about your products to identify areas for improvement.

Challenges and Considerations

When it comes to Amazon retargeting ads, there are several challenges and considerations to keep in mind. Here are some of the most important ones:

Navigating Privacy Regulations

One of the key challenges of Amazon retargeting ads is navigating privacy regulations. With the increasing focus on data privacy and security, it's important to ensure that your retargeting efforts are compliant with all relevant laws and regulations. This means being transparent about how you collect and use customer data, and giving customers the ability to opt out of retargeting if they choose to do so.

Dealing with Ad Fatigue

Another challenge of Amazon retargeting ads is dealing with ad fatigue. If you show the same ad to the same customer too many times, they may start to tune it out or even become annoyed by it. To avoid this, it's important to vary your ad creative and messaging, and to limit the frequency with which you show ads to individual customers.

Understanding Amazon's Algorithm Changes

Finally, it's important to keep up with Amazon's algorithm changes when running retargeting ads. Amazon is constantly tweaking its algorithms to improve the relevance and performance of its ads, which can have an impact on your retargeting efforts. To stay ahead of the curve, monitor your ad performance regularly and adjust your strategy as needed.

Measuring Success in Amazon Retargeting

Retargeting ads on Amazon can be an effective way to increase sales and drive conversions. However, it's important to measure the success of your retargeting campaigns to optimize your ad spend and ensure that you're getting the best return on investment. Here are some key metrics to track when measuring the success of your Amazon retargeting campaigns:

Tracking Conversion Rates

Conversion rate is the percentage of users who take a desired action, such as making a purchase or signing up for a newsletter, after clicking on your retargeting ad. Tracking your conversion rate can help you understand how effective your ad is at driving conversions and identify areas for improvement.

To track your conversion rate, you can use Amazon's Advertising Console or a third-party analytics tool. Be sure to set up conversion tracking before launching your retargeting campaign to ensure accurate measurement.

Analyzing Return on Ad Spend (ROAS)

Return on ad spend (ROAS) is a key metric for measuring the success of your retargeting campaign. ROAS is the revenue generated by your campaign divided by the cost of the campaign. A high ROAS indicates that your campaign is generating revenue at a low cost, while a low ROAS may indicate that you need to adjust your targeting or ad creative.

To analyze your ROAS, you can use Amazon's Advertising Console or a third-party analytics tool. Be sure to track the revenue generated by your retargeting campaign to accurately calculate your ROAS.

Utilizing Amazon Attribution

Amazon Attribution is a tool that allows you to measure the impact of your advertising across the entire customer journey, from initial impression to final purchase. By using Amazon Attribution, you can gain insights into how your retargeting ads are contributing to sales and optimize your campaigns accordingly.

To utilize Amazon Attribution, you'll need to set up tracking tags and integrate them into your retargeting campaigns. Once set up, you can use the Attribution dashboard to view detailed performance metrics and make data-driven decisions about your retargeting strategy.


Amazon retargeting ads are designed to rekindle the interest of shoppers who aren't yet convinced about your product. By strategically reminding them of the products they viewed, you're increasing the likelihood they'll return to complete a purchase. The key is to remain patient and persistent while refining your approach based on campaign performance and customer behavior.

Now that you understand the basics of Amazon retargeting ads, you might be wondering how they stack up against other advertising options on Amazon. Navigating the choices between Amazon DSP Ads and Sponsored Display can further enhance your advertising strategy. To continue optimizing your Amazon presence and make an informed decision about which advertising solution fits your business goals, check out our article on Amazon DSP vs Sponsored Display. Equip yourself with this knowledge to effectively allocate your ad spend and maximize your return on investment.

Frequently Asked Questions

Does Amazon have retargeting ads?

Yes, Amazon offers retargeting ads to advertisers who want to target customers who have previously interacted with their products or services on Amazon's platform.

How do I create a remarketing campaign on Amazon?

To create a remarketing campaign on Amazon, you need to first create a sponsored products or sponsored brands campaign. Then, select the "Audiences" tab and choose the "Remarketing" option. From there, you can create a new audience or use an existing one, and set your bid and budget.

Do retargeting ads still work?

Retargeting ads can be effective in reminding customers of products or services they have previously shown interest in. However, it is important to use them in moderation and with a clear strategy to avoid overwhelming or annoying potential customers.

What is an example of a retargeting display ad?

An example of a retargeting display ad could be an image or video ad. This ad features a product that a customer has viewed or added to their cart. It should also have a call-to-action to complete their purchase or learn more about the product.

How do I create a retargeting audience?

To create a retargeting audience on Amazon, you can use the "Customer Engagement" feature. This feature allows you to target customers who have viewed your product detail page or added your product to their cart. You can also create a custom audience based on customer data such as email addresses or phone numbers.

What are the disadvantages of retargeting ads?

Retargeting ads can be seen as intrusive or annoying if not used strategically. Additionally, they may not be effective for all types of products or services, and can be costly if not managed properly.