Amazon Retargeting: Boost Your Sales by Re-Engaging Shoppers

Reach Out to Potential Buyers and Increase Conversions

By ChannelMAX Staff Writer
Mar-2025#27

Amazon retargeting is a smart digital advertising strategy that focuses on shoppers who previously looked at your product listings but didn’t buy anything. By showing ads to these potential customers on Amazon and other websites, you can bring them back to finish their purchase. This helps increase sales and make more money.

According to a study, retargeted ads can boost conversion rates by up to 150% compared to regular ads. With millions of shoppers visiting Amazon every day, retargeting helps you get back lost sales and turn potential buyers into repeat customers.

How Does Amazon Retargeting Work?



Amazon retargeting uses customer activity data to show personalized ads to people who:

1. Looked at your products but didn’t buy them.
2. Added items to their cart but didn’t complete the purchase.
3. Searched for similar products but didn’t check out.

When these users visit other websites or return to Amazon, they are shown targeted ads that remind them of the products they viewed. This helps sellers stay in the customers’ minds and encourages them to come back and complete their purchase.

Types of Amazon Retargeting Campaigns



Amazon offers different types of ads that help sellers show their products again to shoppers who showed interest earlier. Here are the main types:

1. Sponsored Display Retargeting Ads
Sponsored Display ads let Amazon sellers retarget audiences both on and outside Amazon. These ads appear on Amazon’s product detail pages, customer review pages, and even third-party websites and apps.

a. Who It Targets: Retarget shoppers who viewed your products or similar ones.
b. Where Ads Appear: Appear on Amazon product pages, customer review pages, and even on other websites and apps to remind users of the products they previously viewed.

2. Amazon DSP (Demand-Side Platform)
Amazon DSP offers advanced retargeting ads by letting sellers display ads on and outside of Amazon. DSP campaigns help target specific audience segments and retarget shoppers across multiple platforms.

a. Behavior-Based Targeting: Target users based on their shopping habits, product views, and purchase intent.
b. Where Ads Appear: Ads appear on Amazon-owned websites, third-party sites, mobile apps, and even on video platforms.

3. Remarketing with Sponsored Products
While Sponsored Products primarily focus on driving new traffic, they can also be used for remarketing purposes by targeting high-intent shoppers who already viewed or interacted with your product.

a. Who It Targets: High-intent shoppers who have shown interest in your product.
b. Where Ads Appear: On Amazon search results and product pages.

These campaigns help sellers increase sales by reminding potential buyers about their products.

Why Use Amazon Retargeting?



Retargeting is important for Amazon sellers who want to sell more and get better results. Here’s why:

1. Increase Conversion Rates
Retargeting helps bring back shoppers who showed interest but didn’t complete their purchase. Studies show that retargeted customers are 70% more likely to convert compared to first-time visitors.

a. Higher Chance of Buying: Since retargeted users have already shown interest, they are more likely to make a purchase.
b. Reduced Cart Abandonment: Personalized ads encourage shoppers to revisit their abandoned carts and complete their purchases.

2. Reduce Cart Abandonment
Cart abandonment is a common challenge for e-commerce sellers as many shoppers leave items in their carts without buying them. Retargeting ads remind them of their pending purchases and encourage them to return and complete their orders.

a. Send Reminder Ads: Show ads to users who left items in their cart and offer limited-time discounts to encourage them to complete their purchases.
b. Create Urgency: Use countdown timers or exclusive offers to give them a reason to act quickly.

3. Improve Brand Awareness
Consistently showing your ads to interested shoppers helps build brand recognition. When customers see your products more often, they remember your brand and are more likely to choose it over competitors.

a. Stronger Brand Recall: Customers are more likely to choose a brand they recognize.
b. Establish Trust: Seeing your brand often can make customers trust your products more.

4. Maximize Return on Investment (ROI)
Retargeting focuses on people who already know your product, resulting in higher conversion rates and a better ROI than standard ad campaigns.

a. Lower Acquisition Costs: Retargeting is cost-effective because it targets people who have already shown interest in your products.
b. Better Conversion Rates: People who already know your product are more likely to convert faster, giving you a better ROI.

5. Increase Average Order Value (AOV)
Retargeting ads can encourage shoppers to add more items to buy more or purchase higher-value products.

a. Upsell and Cross-Sell Opportunities: Show ads featuring related or complementary products.
b. Bundle Promotions: Offer bundle deals or discounts on multiple items to encourage customers to spend more.

Best Practices for Running Successful Amazon Retargeting Campaigns



To get the best results from your Amazon retargeting ads, follow these easy steps:

1. Segment Your Audience
Divide your audience into different segments based on their buying behavior:

a. Product Viewers: People who viewed your product but didn’t buy.
b. Cart Abandoners: Users who added items to their cart but didn’t finish the purchase.
c. Repeat Customers: Target previous buyers with complementary products or special offers.
d. Competitor Browsers: Retarget customers who viewed similar products from your competitors.

2. Create Engaging Ad Content
Create ads that highlight the benefits of your product and use clear, high-quality images.

a. Add Emotional Appeal: Use friendly and persuasive words that connect with the audience’s needs.
b. Offer Limited-Time Deals: Create a sense of urgency by offering time-sensitive discounts.

3. Optimize Bidding Strategy
Set realistic bids for your retargeting campaigns based on your Advertising Cost of Sale (ACoS) and desired profit margins.

a. Set Competitive Bids: Ensure your bids are high enough to stay visible in competitive categories.
b. Adjust Based on Results: Keep an eye on how your ads are doing and change bids if needed based on conversion rates and ad spending.

4. Leverage Amazon DSP for Better Targeting
Amazon DSP provides advanced audience insights that help you target high-intent shoppers more effectively.

a. Target High-Intent Shoppers: Focus on customers who have viewed similar products.
b. Refine Your Audience: Use groups of people who are similar to your current customers to reach more people and drive more conversions.

5. Test and Optimize Regularly
Continuously monitor how your ads are performing and A/B test different creatives to identify the best-performing ads.

a. Try Different Ad Types: Test Sponsored Display and DSP ads to see which works best.
b. Analyze and Improve: Analyze performance data and adjust your ads for better performance.

By following these simple steps, you can boost your Amazon retargeting success and increase sales.

Challenges in Amazon Retargeting and How to Overcome Them



While Amazon retargeting can be highly effective, sellers may face certain challenges that impact their ad performance.

1. High Competition and Ad Costs
Retargeting ads can be expensive, especially in popular product categories.

a. Solution: To avoid wasting money, focus on audiences that are more likely to buy and improve your ad copy.
b. Monitor ACoS Closely: Regularly track your ACoS (Advertising Cost of Sale) to stay profitable.

2. Ad Fatigue and Audience Burnout
Showing the same ads repeatedly can make your audience lose interest and be less likely to engage.

a. Solution: Change your ad designs regularly and experiment with different messaging styles to keep them fresh.
b. Personalize Ad Content: Customize ads for different audience segments to maintain engagement.

3. Difficulty in Tracking ROI
Measuring the success of retargeting campaigns can be challenging without proper tracking.

a. Solution: Use Amazon Advertising Reports and analyze performance metrics to adjust bids and refine ad targeting.
b. Set Clear Goals: Define your key performance indicators (KPIs) before launching a campaign.

4. Targeting the Wrong Audience
Targeting the wrong audience can lead to low conversion rates and higher ad costs.

a. Solution: Use Amazon DSP to refine your audience segmentation and identify high-intent shoppers who are more likely to buy.
b. Monitor Audience Performance: Regularly check which audience segments are driving conversions.

5. Limited Ad Space
Amazon has limited ad space, making it hard to keep your ads consistently visible.

a. Solution: Increase bids during peak shopping seasons to ensure your ads remain competitive.
b. Use Multiple Ad Formats: Combine Sponsored Display, Sponsored Products, and DSP ads for better reach.

How to Measure the Success of Your Retargeting Campaigns?



Keeping track of your Amazon retargeting campaigns helps you improve performance and increase your return on investment (ROI). Here are 5 key areas to measure success and tips to optimize your campaigns.

1. Check Click-Through Rate (CTR)
CTR measures how many people click on your ad after seeing it. A higher CTR means your ad is attracting attention and engaging your audience.

Why It’s Important:
A good CTR means that your ad message, design, and call-to-action (CTA) are relevant to the audience. Low CTR means users are not finding the ad interesting enough to click.

Goal:
Aim for a CTR between 0.3% and 0.5% for Sponsored Display Ads. A higher CTR means your ad is performing well and attracting interest.

Action Steps:
a. Test different ad designs, headlines, and CTA buttons to see what works best. 
b. Use A/B testing to compare different versions of your ads and identify the best-performing option.
c. Target the right audience to show ads to people who are more likely to click.

2. Track Conversion Rate
The conversion rate measures how many people buy something after clicking on your ad. It’s an important metric that tells you whether your ads are not only attracting clicks but also driving sales.

Why It’s Important:
A high conversion rate means your landing pages and product listings are convincing enough to convert visitors into buyers. A low rate suggests that people lose interest after clicking.

Goal:
For retargeting campaigns, aim for a conversion rate above 10%. Since retargeted users already know your product, they are more likely to buy.

Action Steps:
a. Optimize your product listings with high-quality images, detailed descriptions, and positive reviews.
b. Improve landing pages to ensure a smooth buying experience.
c. Make sure your pricing and offers are competitive and attractive.

3. Measure Return on Ad Spend (ROAS)
ROAS measures how much revenue your ad generates for every dollar spent. It shows how well your retargeting campaign is giving you returns.

Why It’s Important:
A high ROAS means your ad spend is generating good returns. A low ROAS may indicate that you might be wasting money on ineffective ads or audiences.

Goal:
Aim for a ROAS of 4x or higher for retargeting campaigns, meaning you earn at least $4 for every $1 spent on ads.

Action Steps:
a. Adjust your bidding strategy to focus on high-performing keywords and audiences.
b. Focus more on retargeting users who showed strong interest but didn’t complete the purchase.
c. Exclude low-converting audiences to avoid wasting ad money.

4. Analyze Audience Performance
Analyzing which audience segments respond best to your ads helps improve your targeting and maximize results.

Why It’s Important:
Different audience groups react differently to ads. Identifying and focusing on high-performing groups gives better results.

Goal:
Identify high-performing audience segments and spend more on them to get more conversions.

Action Steps:
a. Use Amazon DSP (Demand Side Platform) data to understand audience behavior and preferences.
b. Test different audience groups, such as cart abandoners, product viewers, and past buyers, to see which group converts best.
c. Continuously update your audience lists to target users with a higher chance of buying.

5. Monitor Cart Abandonment Recovery
Cart abandonment recovery shows how many users who left items in their cart come back to buy after seeing your ads.

Why It’s Important:
Retargeting cart abandoners is a proven way to recover lost sales. These users have already shown interest and may need a little push to complete their purchase.

Goal:
Aim to recover at least 20% of abandoned carts through retargeting ads.

Action Steps:
a. Use personalized retargeting ads to remind users about the items they left in their cart.
b. Offer time-sensitive discounts, free shipping, or other incentives to encourage them to complete their purchase.
c. Create urgency with terms like “Limited stock available” or “Offer ends soon” in your ads. 

Keep checking these metrics regularly to adjust your ad campaigns and improve your ROI. Regular updates will help keep your retargeting campaigns effective and profitable.

Conclusion
Amazon retargeting is a proven strategy to re-engage potential buyers and boost conversions. By leveraging Sponsored Display ads, Amazon DSP, and Sponsored Products, sellers can effectively target high-intent shoppers and drive more sales. To get the best results from retargeting campaigns, follow best practices, track your ad performance metrics, and optimize your ad content. 

Start using Amazon retargeting today to turn missed opportunities into sales and grow your Amazon business!

Also Read: Amazon Advertising Campaign: A Complete Guide to Maximizing Sales 

Disclaimer:
Amazon is the registered trademark of the e-commerce brand.

About ChannelMAX.NET :
Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Repricer, a pricing management tool, 2ndly, ChannelMAX FBA RefundMAX, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which seller deserves appropriate credit reimbursement from Amazon, additionally ChannelMAX Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their day to day business. Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.