Amazon’s advertising platform has become a game-changer for e-commerce sellers. With millions of daily shoppers searching for products, Amazon Ads offer a powerful way to boost visibility and sales. However, while these ads can deliver excellent results, many sellers unknowingly make mistakes that drain their budgets and hurt profitability.
In this article, we’ll explore the top Amazon ad mistakes sellers must avoid and provide actionable tips to run more efficient campaigns.
1. Skipping Keyword Research
One of the most common Amazon ad mistakes sellers must avoid is neglecting keyword research. Many sellers run ads using only a handful of keywords they “think” are relevant, without analyzing actual search data.
Why it’s a problem:
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Limits visibility to a narrow audience
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Misses out on high-intent keywords shoppers use
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Increases cost-per-click (CPC) for less relevant terms
How to fix it:
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Use Amazon’s keyword planner or third-party tools like Helium 10 or Jungle Scout
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Include both short-tail and long-tail keywords
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Regularly update your keyword list based on performance
2. Ignoring Negative Keywords
Negative keywords are essential for filtering out irrelevant searches. Without them, your ads may show up for unrelated queries, costing you money without conversions.
Example:
If you sell “leather office chairs” but your ad shows up for “wooden dining chairs,” you’re wasting ad spend.
How to fix it:
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Review your search term reports weekly
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Add irrelevant keywords to your negative keyword list
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Continuously refine to avoid unnecessary clicks
3. Using Only Automatic Campaigns
Automatic campaigns are great for discovering new keywords, but relying solely on them is another Amazon ad mistake sellers must avoid. Automatic campaigns give Amazon control over your targeting, which may not always align with your profit goals.
Why it’s risky:
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Less control over ad spend
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Risk of showing ads for low-converting searches
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Higher CPC in some cases
Best approach:
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Use automatic campaigns for keyword discovery
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Create manual campaigns to target high-performing keywords directly
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Adjust bids based on performance
4. Not Optimizing Product Listings
Even the best Amazon ad strategy will fail if your product listing isn’t optimized. Poor titles, low-quality images, or unclear descriptions can ruin your conversion rates.
Fix this by:
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Using high-resolution product images
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Writing clear, keyword-rich product titles
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Highlighting key benefits in bullet points
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Including detailed descriptions that answer customer questions
Remember: ads bring traffic, but your product page closes the sale.
5. Overlooking Bidding Strategies
Many sellers set one flat bid for all keywords without considering competition, profitability, or placement. This can lead to overspending on low-value clicks or underbidding for high-value keywords.
How to fix it:
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Use dynamic bidding (up and down) for high-performing keywords
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Lower bids for low-converting terms
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Test bid adjustments for different ad placements (top of search, product pages, etc.)
6. Ignoring Campaign Performance Data
Launching an ad campaign and leaving it untouched is one of the costliest mistakes. Amazon provides detailed performance reports—use them.
Track regularly:
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Click-through rate (CTR)
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Conversion rate (CVR)
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Advertising Cost of Sales (ACoS)
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Total Sales from Ads
Pro tip: Make small, data-driven changes rather than overhauling campaigns all at once.
7. Not Segmenting Campaigns
Mixing multiple products in one campaign makes it harder to track performance and optimize effectively.
Better strategy:
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Create separate campaigns for each product or product category
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Allocate budgets based on product performance
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Test different ad types (Sponsored Products, Sponsored Brands, Sponsored Display)
8. Setting Unrealistic Budgets
Running ads with too small a budget may prevent your campaign from gathering enough data to optimize effectively. On the other hand, overspending without tracking performance wastes resources.
Solution:
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Start with a moderate budget to gather data
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Increase spending gradually on high-performing campaigns
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Pause or reduce budget for underperforming ads
9. Not Leveraging Different Ad Types
Focusing only on Sponsored Products is another Amazon ad mistake sellers must avoid. Amazon offers multiple ad formats to increase brand visibility.
Options include:
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Sponsored Products – Great for driving direct sales
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Sponsored Brands – Boosts brand awareness with custom headlines and logos
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Sponsored Display – Targets customers on and off Amazon
Pro tip: Test different formats to see which delivers the best ROI for your products.
10. Failing to Monitor Competitors
Amazon is highly competitive. Ignoring what your competitors are doing can leave you at a disadvantage.
How to stay competitive:
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Track competitor pricing and promotions
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Analyze which keywords they’re targeting
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Use tools like AMZScout or Sellics for competitive insights
Final Thoughts
Amazon Ads can be a powerful tool to boost your sales, but only if used wisely. By avoiding these Amazon ad mistakes sellers must avoid, you’ll protect your budget, reach the right audience, and maximize your ROI.
Remember: success with Amazon Ads isn’t about spending more—it’s about spending smarter.
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