Guide

Combining Fulfillment by Amazon (FBA) and Amazon Ads

How to help increase sales using FBA with advertising

To increase sales on Amazon with Fulfillment by Amazon (FBA), sellers should focus on optimizing listings with high-quality images and relevant keywords, implementing sales promotions, and creating engaging advertising campaigns that help drive conversions. By combining FBA with Amazon Ads solutions, sellers can help enhance their visibility and reach more customers.

Create campaigns and display products with Amazon Ads.

Contact us to request services managed by Amazon Ads.

Leverage insights and signals that help increase sales.

Display your products on Amazon and select third-party sites.

What is Fulfillment by Amazon (FBA)?

Fulfillment by Amazon (FBA) is a comprehensive logistics service that enables Amazon sellers to outsource their entire order fulfillment process to Amazon. With FBA, sellers store their inventory in Amazon's vast network of fulfillment centers, where Amazon handles all aspects of storage, picking, packing, shipping, and customer service—including returns. This solution allows sellers to leverage Amazon’s established infrastructure and offer customers free, two-day shipping through Prime, which helps them focus on other aspects of growing their business.

How does FBA work?

FBA works through a five-step process that streamlines order fulfillment for sellers. First, sellers send their inventory to Amazon's fulfillment centers, where it's received and logged into the system. Next, Amazon stores the inventory, maintaining stock levels and accessibility. When a customer places an order, Amazon processes it using their pick-and-pack system. The fourth step involves Amazon shipping the order using their established carrier network. Finally, Amazon handles any returns, restocking or discarding products as needed, and processing refunds.

What are the benefits of FBA?

The benefits of FBA go beyond order fulfillment and logistics. FBA can also help your brand increase visibility, boost sales, and enhance customer satisfaction on Amazon. From reducing costs to streamlining operations, FBA offers multiple advantages for brands looking to grow. Let’s explore these benefits in more detail.

Spend less

FBA helps reduce shipping costs for sellers. Shipping with FBA costs 70% less per unit than comparable premium options offered by other major U.S. carriers.1 Beyond shipping, you'll also save on warehouse expenses and reduce staffing costs associated with fulfillment operations.

Increase sales

FBA can help boost your sales potential—turning browsers into buyers. By leveraging Amazon's fulfillment network, you can offer customers fast, reliable shipping, which can help influence purchasing decisions. FBA products are also eligible for Amazon Prime, which can increase your product's visibility to Prime members and potentially lead to more sales opportunities.

Grow your business

FBA offers opportunities for business expansion. Amazon’s network includes hundreds of fulfillment centers worldwide, helping you reach customers in international marketplaces. This allows you to scale your ecommerce business operations without significant infrastructure investment.

Operate with greater ease

FBA can simplify your business operations. By outsourcing order processing, inventory management, customer service, and returns to Amazon, you free up valuable time and resources. This includes managing seasonal peaks and holiday rushes. These simplified operations allow you to focus on what matters most: developing great products and growing your business.

Build customer trust

Products sold via FBA come with Amazon’s trusted fulfillment reputation, which helps build confidence in your brand with potential buyers. Customers know they can rely on Amazon’s customer service and hassle-free returns process. This trust factor can help lead to repeat purchases and a positive brand image.

How do FBA and Amazon Ads work together?

FBA streamlines fulfillment operations, while Amazon Ads offers advertising solutions to help your brand and products reach customers across Amazon plus third-party apps and websites. With products like Sponsored Products, Sponsored Brands, and Sponsored Display, Amazon Ads can help boost product and brand visibility and increase sales. Together, the efficiency of FBA and the reach of Amazon Ads can help Amazon sellers maximize their sales opportunities.

How can I increase sales with FBA and Amazon Ads?

You can increase sales with FBA and Amazon Ads by optimizing your product listings and creating engaging advertising campaigns. Successful sellers focus on high-quality product content, strategic sales promotions, and insights-driven advertising decisions. From multi-channel marketing approaches to seasonal opportunities, the following strategies can help you grow your business with FBA and Amazon Ads.

When your product detail page includes detailed, high-quality information, your chance of getting a click, or making a sale, can significantly increase. Strong search engine optimization (SEO) practices and organic ranking improvements start with well-optimized product detail pages.

To optimize your product listings, try these recommendations:

Write compelling titles and descriptions

Create informative, keyword-rich titles that clearly communicate your product's key features. Keep titles under 200 characters, front-load the most important information, and follow SEO best practices. In your product descriptions, highlight unique selling points and address potential customer questions.

Showcase products with high-quality images

Include at least 6–8 high-resolution images that showcase your product from various angles. Use lifestyle images to demonstrate the product in use and infographics to highlight key features.

Enhance with A+ Content

If you're a brand-registered seller, utilize A+ Content to create visually appealing listings with enhanced images, comparison charts, and brand storytelling elements.

Win the Featured Offer

Strive to win the Featured Offer (formerly known as the Buy Box) through factors Amazon’s algorithm considers like competitive pricing, in-stock inventory, and excellent customer service.

2. Take a multi-channel approach

Expand your reach and drive more traffic to your Amazon listings by implementing a multi-channel marketing strategy with these tips:

Combine Amazon Ads solutions

Utilize Amazon's suite of advertising products, including Sponsored Products, Sponsored Brands, and Sponsored Display ads. Each product engages customers at different stages of the shopping journey.

Drive external traffic

Use external marketing channels to drive traffic to your Amazon listings. Consider using Amazon Attribution to track the performance of non-Amazon marketing efforts.

Leverage social media

Build a strong social media presence to engage with customers and promote your products. Share customer reviews, behind-the-scenes content, and special promotions to drive interest.

3. Refine your keyword strategy

Develop a robust keyword strategy to improve your product's discoverability. Incorporate a mix of broad, phrase, and exact match keywords in your manual campaigns. Regularly review and optimize your keyword performance, adding negative keywords to refine your targeting and improve ad spend efficiency.

4. Leverage seasonal opportunities

Take advantage of peak shopping seasons and events to boost your sales. Plan your inventory and advertising strategies around major events like Prime Day, Black Friday, and holiday seasons using Amazon's deal and coupon features to attract more customers. Adjust your advertising budget and bidding strategies to maintain visibility during these competitive periods.

5. Expand globally with FBA

Utilize Remote Fulfillment with FBA to reach customers in Canada, Mexico, and Brazil using your inventory in the U.S. Create offers on Amazon.ca, Amazon.mx, and Amazon.com.br, and Amazon will use your U.S. inventory to deliver in these countries with Prime shipping. This program simplifies international sales by handling export logistics, fulfillment, customer inquiries, and returns.

6. Utilize the New Seller Guide

For new sellers, take advantage of Amazon's New Seller Guide and associated incentives. Use features like Automate Pricing to stay competitive, and leverage the various credits and discounts offered to new sellers to optimize your advertising and fulfillment strategies. Familiarizing yourself with all the resources available to new sellers will help give your business the best start on Amazon.

FBA and Amazon Ads success stories and examples

Case Study

Brazilian honey-liqueur brand Philip Mead combined FBA's one-day delivery capability with strategic Sponsored Products campaigns to boost their presence in Brazil's competitive beverage category. Using automatic keyword targeting and regular campaign optimization, while leveraging their small business badge and positive customer reviews, they achieved remarkable growth. Their strategy led to 3X total sales during Prime Day and the year-end period in 2023 compared to 2022, maintained a 9.6 return on ad spend (ROAS) throughout 2023, and established meaningful customer connections through enhanced A+ Content.

mead

Case Study

Vacuum brand Raycop successfully entered the Japanese marketplace by implementing a comprehensive advertising strategy alongside FBA. By utilizing Sponsored Products, Sponsored Brands, and Sponsored Display ads, while maintaining strategic budget management and keyword optimization, they significantly increased their presence in the marketplace. The campaign resulted in 3X more visits to their product detail pages, earned them the Seller FBA Award for growth and customer satisfaction, and established them as a trusted brand in Japan.

raycop

Case Study

U.S.-based home décor company Warm Home Designs leveraged Remote Fulfillment with FBA and Amazon Ads to successfully expand into Mexico. Through a combination of sponsored ads and careful budget allocation, they established their brand in a new country. Their strategy resulted in ad-attributed sales accounting for more than 60% of their overall sales in Mexico since 2022, helped diversify their product category success, and provided a blueprint for further international expansion.

How Warm Home Designs achieved global growth with FBA and strategic advertising

Case Study

Consumer firm Heroes utilized Amazon Marketing Stream insights to optimize Sponsored Products campaigns for their brand JNW Direct, which sells water and spa testing products. By partnering with Perpetua and implementing hourly dayparting strategies based on Amazon Marketing Stream insights, they significantly improved campaign efficiency. This insights-driven approach led to a 21% decrease in advertising cost of sales (ACOS), an 18% reduction in cost-per-click (CPCs), and an impressive 127% increase in overall sales, demonstrating the power of combining FBA with advanced advertising optimization techniques.

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Featured Amazon Ads products

Amazon Ads offers a range of advertising solutions designed to reach customers at various stages of their shopping journey, from discovery to purchase. The following Amazon Ads products are effective complements to FBA.

New Product Campaigns are optimized full-funnel media plans designed to connect with shoppers, drive discovery, and generate sales during the first 90 days. This solution combines video, audio, display, and device ads to drive awareness, consideration, and conversion for new products, helping you reach the right customers across Amazon and beyond.

Sponsored Products are cost-per-click ads that promote individual product listings on Amazon and select premium apps and websites. These ads appear in shopping results and on product detail pages, helping to increase visibility and drive sales by taking shoppers directly to your product page when they click.

Sponsored Brands are ads that use rich display and video creatives in premium placements like search results and product pages to help customers discover your brand and drive traffic to your Brand Store or product detail pages.

Sponsored Display is a display advertising solution that helps you reach relevant audiences across the Amazon store and third-party apps and websites. It uses machine learning and multi-format creatives to engage customers throughout their shopping journey.

Take a quick assessment to find your path to advertising success. You'll receive curated resources—including case studies, guides, and product information—aligned with your unique business goals.

Discover Amazon Ads full suite of advertising solutions designed to help you reach shoppers at key moments with engaging campaigns. From Streaming TV and interactive video to audio ads and out-of-home opportunities, Amazon Ads can support every part of media planning for businesses of any size and budget.

How to get started with FBA and Amazon Ads

Follow these five steps to build your advertising efforts with FBA.

1. Set goals

Define clear objectives for your advertising strategy. Whether you want to increase visibility, drive sales, or build brand awareness, having specific goals will help guide your campaign decisions and measure success. For each goal, identify the Key Performance Indicators (KPIs) that best align with your business objectives.

2. Choose specific ad types

Select the advertising solutions that best support your goals. Sponsored Products can help drive sales for individual items, while Sponsored Brands help build brand awareness. Consider using Sponsored Display to reach relevant audiences across Amazon and beyond.

Need help choosing the right solution? Take a quick assessment to find your path to advertising success with Amazon Ads. You’ll receive curated resources, including case studies, guides, and product information, aligned with your unique business goals.

3. Create campaigns

Start by registering as an advertiser if you haven’t already. In the advertising console, navigate to “campaign manager.” Follow the on-screen instructions to set up your campaign, including the name of your campaign, products you want to advertise, targeting options, and your budget and duration. For more information on this process, refer to the Amazon advertising console guide.

4. Measure performance

Monitor your campaign performance regularly through the advertising console. Track relevant KPIs such as impressions, click-through rates (CTR), conversion rate, and ROAS to understand what’s working and where there’s room for improvement. Leverage available reports in the advertising console for deeper analysis.

5. Test and optimize

Continuously refine your campaigns based on performance data. Test different ad copy, images, and targeting strategies, and adjust bids and budgets based on results. Document key learnings to set new benchmarks and inform your next advertising strategy.

Amazon Ads tools for FBA sellers and brands

FBA sellers registered with Amazon Ads can access the following tools to help:

Monitor ad performance

Campaign reporting provides performance metrics through the Amazon advertising console and Amazon DSP. Access detailed reports to track success metrics, new-to-brand metrics, traffic, reach and frequency, viewability, and conversion data. For measuring external marketing impact, Amazon Attribution helps you understand how non-Amazon marketing channels drive discovery and sales of your products on Amazon. Keep in mind that Amazon’s algorithm uses these metrics, along with factors like pricing and fulfillment speed, to determine product visibility in search results.

Research keywords

Use the search term report in the Amazon advertising console to help discover how shoppers find your products and identify high-performing customer search terms. For brand-registered FBA sellers, Brand Analytics provides additional insights through dashboards like Search Query Performance and Top Search Terms, helping you understand customer search behavior and optimize your keyword strategy.

Optimize ad campaigns

The campaign manager dashboard in the Amazon advertising console provides a central location to manage campaigns and view performance metrics. Use the products page to analyze advertising performance metrics like impressions, clicks, sales, and ROAS at the product level. Access the targeting page to view delivery and performance metrics across your automatic, keyword, product, and audience targets, helping you quickly identify areas of opportunity to optimize your campaign performance.

Manage and optimize bids

Take advantage of dynamic bidding strategies in the Amazon advertising console to automatically adjust your bids based on conversion likelihood. Choose "dynamic bids - down only" to reduce bids for less likely conversions, or "dynamic bids - up and down" to increase bids by up to 100% for top-of-search placements and up to 50% for other placements.

Amazon Ads certifications and courses

For FBA sellers and ecommerce professionals looking to enhance their advertising skills, Amazon Ads offers a range of educational resources and trainings on Amazon Ads Academy. This section explores top courses on Amazon Ads Academy for FBA sellers and Amazon Ads beginners. These courses can be taken individually to focus on specific areas or completed together as part of the Amazon Ads for Retail Certification.

This foundational course provides an introduction to Amazon, focusing on the relationship between Amazon and its selling partners. You'll learn about the benefits of selling on Amazon.com, including techniques to optimize product listings. The course covers Amazon's retail solutions, seller types, and business models, as well as tools to protect your brand on Amazon.com.

This course offers an in-depth look at Amazon's retail business models and fulfillment options. You'll gain a comprehensive understanding of fulfillment methods, including Fulfillment by Amazon (FBA), Seller Fulfilled Prime (SFP), Merchant Fulfilled Network (MFN), and Multi-Channel Fulfillment (MCF).

For those new to Amazon Ads, this course provides essential knowledge about retail readiness and product detail pages. You'll learn how retail readiness impacts both customer experience and your success as an Amazon seller. The course also introduces Amazon Ads solutions and explores how retail readiness affects advertising campaign effectiveness. You'll master the art of creating compelling product titles, descriptions, and bullet points to enhance your organic rankings and ad performance.

This course covers creating and managing product listings, best practices for launching new products, and leveraging Amazon Ads solutions for product launches. You'll also learn how to monitor results and customer feedback to continually optimize your performance and boost Amazon sales.

This course delves into Seller Central and Vendor Central, two tools for managing your Amazon business. You'll explore the user interfaces and learn how to leverage these tools to enhance your advertising efforts.

FAQs

Get answers to your questions about advertising with Amazon Ads while selling with FBA.

How can I effectively manage my ad spend with FBA?

To manage your ad spend with FBA, track your advertising campaigns' revenue against your ad spend to measure their effectiveness. A good benchmark is earning at least $2–4 for every $1 spent on advertising. Make sure to track this metric regularly using Amazon Ads analytics tools and adjust your strategy based on what's working. For example, you could start with automatic targeting to discover effective keywords, then transition to manual targeting once you identify what drives results. Using a combination of sponsored ads can also help maximize your reach while maintaining profitability.

What advertising strategies help engage specific demographics?

When creating your campaign, leverage various Amazon Ads tools to help you engage audiences based on demographic information. Amazon Marketing Cloud (AMC) can help you gather audience insights, and Amazon Ads API will help you automate campaigns based on your desired audience segments. Additionally, Amazon Attribution can provide you with details on non-Amazon Ads campaigns. With a sound audience segmentation strategy, your brand can get your products in front of the right audiences at the right time.

How can I incorporate coupons and promotions into my advertising strategy?

When running sales promotions, there are several Amazon Ads solutions you can incorporate to help enhance your approach. Sponsored Products helps boost visibility of individual product deals in shopping results and product detail pages. Sponsored Brands help customers discover your promotional offerings with ads featuring your brand logo and custom headlines, while Sponsored Display ads extend your promotions' reach across Amazon and third-party apps and websites.

What are best practices for Sponsored Products ads?

A best practice for Sponsored Products ads is starting with a daily budget of at least $10 and optimizing your product detail pages to win the Featured Offer (formerly known as the Buy Box). You should optimize with competitive pricing, clear titles, and quality images, which also helps improve your brand’s SEO performance. When you first start advertising, it’s recommended to use automatic targeting to let Amazon match your ads to relevant searches, then refine with manual targeting based on performance. Additionally, it is a good idea to monitor your campaign metrics twice a week, focusing on impressions, clicks, and sales. Learn more in our best practices for Sponsored Products guide.

How can I build my brand through Amazon Ads?

To build your brand effectively with Amazon Ads, start by establishing clear goals around awareness, education, and favorability, then develop messaging that aligns with these objectives. Consider a multichannel strategy that reaches your desired customers where they naturally spend time—from the Amazon store to streaming TV to smart home devices. Then analyze your brand building success using measurement solutions like Amazon Attribution and Amazon Brand Lift.

What advertising strategies can help improve conversion rates with FBA?

To improve your conversion rates, start by defining your conversion goals and use Amazon Ads measurement tools to track your performance. Focus on creating engaging, relevant content for your customers, and optimize your product detail pages through SEO improvements and A/B testing. Then analyze these insights to understand how your brand is performing and identify opportunities for optimization.

How should I adjust my advertising strategy for seasonal sales?

During peak shopping seasons, adjust your existing strategy by expanding into awareness-driving placements like video, audio, and streaming TV like Prime Video. Adapt your creative content to highlight seasonal deals clearly and consistently across all channels, in addition to updating your Brand Store to showcase promotional content.

If you have limited experience, contact us to request services managed by Amazon Ads. Budget minimums apply.