Running ads on Amazon is essential for driving sales, but excessive spending can quickly eat into your profits. Many sellers find themselves trapped in a cycle of increasing ad budgets just to maintain sales, without realizing that a smarter strategy can lower ad costs while keeping revenue steady—or even increasing it. The key lies in optimizing campaigns, refining targeting, and improving product listings to ensure every dollar spent works harder.

This article will provide a step-by-step guide to cutting your Amazon FBA ad spend without losing sales, covering everything from keyword optimization and bid adjustments to advanced strategies like external traffic and dayparting. 

How Amazon PPC Works

Amazon’s Pay-Per-Click (PPC) system allows sellers to promote products through Sponsored Products, Sponsored Brands, and Sponsored Display Ads. Each ad type has different objectives, but they all operate on a bidding system, where advertisers compete for ad placements based on the amount they’re willing to pay per click (CPC).

The most common ad type is Sponsored Products, which appear in search results and product detail pages. These ads operate on a simple principle: sellers bid on keywords, and Amazon determines ad placements based on bid amount, ad relevance, and product performance. When a shopper clicks an ad, the seller pays for that click, regardless of whether it results in a sale.

Why Controlling Amazon Ad Spend is Important

Many sellers mistakenly assume that increasing ad budgets guarantees more sales. While this may be true in the short term, poorly optimized campaigns can lead to high costs without meaningful revenue growth. The ultimate goal is to achieve a low Advertising Cost of Sale (ACOS) while maintaining strong conversion rates.

For example, if you spend $500 on ads and generate $1,500 in revenue, your ACOS is 33% ($500 / $1,500). If your product margin is 30%, this means your entire profit is eaten up by ad costs. Reducing your ACOS to 20% or lower allows you to keep more of your revenue as profit.

Which Things Affect Your Ad Costs

Several factors influence your Amazon PPC costs, including:

• Bid Amount: Higher bids increase visibility but also raise CPC.
• Ad Relevance: Amazon favors ads that match shopper intent, reducing wasted spend.
• Click-Through Rate (CTR): A low CTR means wasted impressions and higher CPC.
• Conversion Rate: The higher the conversion rate, the more profitable the campaign.
• Competition in Product Category: Highly competitive niches drive up CPC rates.

Understanding these factors allows you to fine-tune your advertising approach and eliminate unnecessary costs.

How to Diagnose Your Current Ad Performance

Calculating and Benchmarking ACOS

Before making changes, it’s essential to analyze your Advertising Cost of Sale (ACOS) and set a benchmark. The ideal ACOS varies by category, but in general:

• 10-20% ACOS: Excellent for maintaining strong profitability.
• 20-30% ACOS: Average, manageable for most sellers.
• 30%+ ACOS: Needs improvement, as ad costs are cutting into margins.

Amazon’s Total Advertising Cost of Sale (TACOS) is another key metric, measuring ad spend as a percentage of total revenue, including organic sales. A declining TACOS over time indicates that organic sales are increasing, reducing dependency on paid ads.

Identifying Wasted Ad Spend

Many sellers unknowingly waste significant portions of their ad budget on ineffective campaigns. To identify waste, analyze your Search Term Reports and look for:

• Keywords with high spend but low conversions.
• Irrelevant search terms generating clicks but no sales.
• Campaigns with high ACOS and low return on ad spend (ROAS).

For example, if a keyword costs you $5 per click but converts only 1 out of 50 times, your cost per sale is $250 ($5 x 50 clicks)—likely more than the profit margin of the product.

Assessing Seasonal Trends

Amazon’s marketplace fluctuates throughout the year. Black Friday, Prime Day, and Q4 see higher competition and ad costs, while Q1 and summer months generally have lower CPC rates. Analyzing past trends can help determine the best times to scale back spending and reallocate budget more effectively.

How to Optimize Amazon PPC Campaigns to Reduce Costs

Keyword Optimization

One of the most effective ways to reduce Amazon ad spend is through keyword refinement. Rather than bidding aggressively on broad, high-competition keywords, focus on long-tail, high-converting search terms.

For instance, instead of bidding on “yoga mat” (high CPC and competition), optimize for “extra thick non-slip yoga mat for home workouts”—a keyword with lower competition and a more specific intent.

Negative keywords are equally important. Adding irrelevant terms to your negative keyword list prevents wasted spend. For example, if you sell high-end leather wallets, adding “cheap” or “fake” as negative keywords ensures you don’t pay for clicks from bargain hunters unlikely to convert.

Budget & Bidding Strategies

Amazon’s Dynamic Bidding system offers options to optimize spend:

• Down Only: Lowers bids when a conversion is less likely, reducing costs.
• Up and Down: Adjusts bids based on likelihood of conversion.

For cost reduction, “Down Only” bidding is recommended to avoid overpaying for clicks. Additionally, setting bid caps ensures you never exceed your desired CPC.

Using Negative Keywords to Cut Waste

Negative keywords prevent irrelevant traffic, reducing spend on clicks that don’t lead to conversions. Regularly reviewing Search Term Reports helps identify terms that drain budget. Exact match and phrase match negatives provide better control, ensuring your ads only appear for relevant searches.

Product Listing Optimization for Better Ad Efficiency

Optimizing your product listing improves conversion rates, ensuring that more of your ad clicks turn into sales. This means better ROI on your ad spend. The key areas to optimize include:

• Title: Ensure primary keywords appear naturally.
• Images: Use high-quality product images, infographics, and lifestyle shots.
• Bullet Points & Descriptions: Highlight key benefits clearly.
• A+ Content: Leverage Enhanced Brand Content (EBC) to improve engagement.
• Backend Search Terms: Add hidden keywords for better discoverability.

A well-optimized listing means you convert more visitors into buyers, reducing the number of clicks needed to make a sale—and ultimately, cutting down ad costs.

Advanced Strategies to Lower Amazon Ad Spend

External Traffic Sources

Diversifying traffic sources can reduce reliance on Amazon PPC while boosting overall sales. External traffic from sources like Google, Facebook, Instagram, and influencer marketing can drive organic visibility and improve rankings.

• Use Google Ads, Facebook Ads, and email marketing to drive external traffic to your listings.
• Implement Amazon Attribution tools to track conversions and measure external ad performance.
• Utilize PixelMe to sync data between Amazon and external platforms for better audience targeting.

Avoiding Ad Cannibalization

Ad cannibalization occurs when you pay for clicks on keywords where you already rank organically. This results in wasted ad spend on traffic you would have received for free.

• Identify high-ranking organic keywords and test reducing bids on corresponding PPC ads.
• Monitor total sales and adjust bids accordingly to balance organic and paid traffic.

Continuous Monitoring and Improvement

Lowering ad spend isn’t a one-time effort—it requires continuous monitoring and strategic adjustments. Amazon’s advertising landscape is dynamic, with competition, bidding trends, and algorithm changes constantly evolving.

Regularly review performance metrics such as ACOS, CTR, conversion rates, and keyword effectiveness to refine campaigns. Testing different strategies and making data-driven decisions will ensure sustainable cost reductions without sacrificing sales.

Additional Cost-Saving Tips

Main Image Optimization

A compelling main image significantly improves CTR and reduces the need for excessive ad spending. Listings with high-quality images tend to perform better organically, reducing dependency on PPC.

• Ensure images are high-resolution, professionally edited, and clearly showcase product features.
• Include lifestyle images to create a stronger emotional connection with buyers.
• Test different image variations to determine which leads to higher CTR and conversions.

Product Pricing Adjustments

Pricing impacts conversion rates and can influence the effectiveness of advertising efforts. A lower price point can sometimes boost conversions enough to justify a higher ad spend.

• A/B test pricing strategies to find the balance between affordability and profitability.
• Use competitive pricing tools to monitor market trends and adjust pricing accordingly.

Balancing Ad Spend with Organic Sales

Amazon SEO and organic ranking improvements can significantly reduce the need for paid ads. Optimizing listings, increasing reviews, and leveraging Amazon’s A+ Content feature can all contribute to organic visibility.

• Optimize product descriptions with relevant keywords to improve ranking.
• Encourage customer reviews to build credibility and boost conversions.
• Implement enhanced content strategies to increase engagement and drive sales naturally.

Monitoring Competitor Activity

Keeping an eye on competitor strategies can help you stay competitive while optimizing your ad spend. Track changes in competitor bidding, pricing, and listing optimizations to adjust your approach accordingly.

By implementing these techniques and continuously refining your approach, you can successfully lower Amazon FBA ad spend while maintaining or even increasing sales. The key lies in smart bidding, effective keyword targeting, optimized product listings, and leveraging organic growth strategies.

How ZonHack Can Help You Lower Amazon FBA Ad Spend Without Losing Sales

Managing your Amazon PPC campaigns efficiently requires expertise, time, and continuous monitoring. ZonHack, a leading Amazon growth partner, provides data-driven strategies and expert campaign management to help sellers reduce ad spend while maintaining or even increasing sales.

AI-Powered PPC Optimization for Maximum ROI

ZonHack leverages advanced AI algorithms and machine learning tools to analyze your advertising performance and adjust your campaigns dynamically. By automatically detecting high-ACoS keywords, wasted ad spend, and underperforming campaigns, ZonHack ensures that every dollar you invest in Amazon PPC yields the highest possible return.

Keyword & Bid Optimization

One of the biggest drains on your ad budget is ineffective keyword targeting. ZonHack’s keyword refinement process helps you:

• Eliminate wasteful search terms that drive up costs without conversions.
• Focus on high-converting keywords that bring in profitable sales.
• Implement negative keywords to prevent irrelevant traffic.
• Adjust bids intelligently based on performance data, ensuring you only pay what’s necessary to remain competitive.

Smart Dayparting & Budget Control

With ZonHack’s smart dayparting technique, your ads run only during peak conversion hours, preventing budget waste on low-traffic times. Additionally, ZonHack continuously monitors campaign performance and reallocates budget dynamically, scaling up winning ads while pausing ineffective ones to maximize efficiency.

Organic Ranking & External Traffic Integration

Amazon PPC isn’t just about reducing costs—it’s also about growing organic visibility. ZonHack employs strategies that boost your organic rankings, so you become less reliant on paid ads over time. Through external traffic sources like Google Ads, Facebook, and TikTok Shop, ZonHack helps sellers drive additional conversions while lowering reliance on Amazon PPC.

Proven Results & Expert Support

ZonHack has helped hundreds of Amazon sellers cut their ad spend by 20-40% while maintaining or growing sales. With real-time analytics, ongoing campaign adjustments, and expert support, you get sustainable, long-term growth for your Amazon business.

Let ZonHack Optimize Your Amazon PPC Today

If you’re tired of overspending on ads without seeing results, ZonHack is your solution. Our team of Amazon advertising experts will audit your campaigns, eliminate wasteful spending, and create a high-ROI strategy tailored to your business.

Get a Free PPC Audit & Start Saving Today! Visit ZonHack to learn more.