Why Amazon Matters Even If Shopify Is Your Primary Store
Amazon is where 60% of US product searches begin. More people start searching for products on Amazon than on Google. If you sell physical products on Shopify and ignore Amazon entirely, you are invisible to the majority of product shoppers during their initial research phase. This does not mean you should move your entire business to Amazon, but strategically using Amazon's advertising ecosystem alongside your Shopify store captures demand you would otherwise miss entirely.
There are two distinct strategies for Shopify merchants: selling select products on Amazon and advertising them with Sponsored Products and Sponsored Brands (marketplace strategy), or using Amazon DSP to reach Amazon shoppers with ads that drive traffic to your Shopify store (off-Amazon strategy). Many successful DTC brands use both approaches simultaneously, using Amazon as an acquisition channel that feeds their owned Shopify ecosystem.
The economics of the dual approach are compelling. Amazon takes a significant commission (8-15% plus FBA fees), but the marketplace provides built-in demand and trust. Products that succeed on Amazon validate demand and generate reviews that you can leverage on your Shopify store. Meanwhile, every Amazon customer represents an opportunity to convert to a direct Shopify customer for subsequent purchases, where you keep the full margin.
Sponsored Products: Your Amazon Advertising Foundation
How Sponsored Products work. Sponsored Products are keyword-targeted or product-targeted ads that appear in Amazon search results and on product detail pages. When a shopper searches for a relevant keyword or browses a relevant product, your ad appears alongside organic results. You pay per click (CPC model), typically $0.50-$3.00 per click depending on category competition.
Keyword research for Amazon. Amazon keyword research differs from Google keyword research because purchase intent is built into every Amazon search. Use Amazon's auto-suggest (type your product name and see what Amazon suggests), Amazon Brand Analytics (available to brand-registered sellers), and tools like Helium 10 and Jungle Scout for keyword research. Focus on high-intent product keywords that match your exact product.
Campaign structure. Create three campaign types: automatic targeting (let Amazon's AI match your product to relevant searches, good for discovery), manual keyword targeting (target specific keywords with exact, phrase, and broad match), and product targeting (target specific competitor ASINs and complementary products). Run all three simultaneously for comprehensive coverage.
Optimization rhythm. Review performance weekly. Add high-performing automatic campaign search terms to manual campaigns as exact match keywords. Negate irrelevant search terms to reduce wasted spend. Adjust bids based on ACoS (Advertising Cost of Sales): target 15-25% ACoS for established products, allow 30-40% for new products building ranking.
Sponsored Brands and Sponsored Display
Sponsored Brands. These ads appear at the top of search results with your brand logo, custom headline, and multiple products. They drive brand awareness and showcase your product range. Available to brand-registered sellers. Include a video format (Sponsored Brands Video) that auto-plays in search results and generates 3-5x the click-through rate of standard image ads.
Sponsored Display. These ads target shoppers based on product interests and shopping behaviors. They appear on Amazon product pages, customer review pages, and off-Amazon on third-party websites. Sponsored Display's product targeting lets you place ads on competitor product pages, intercepting shoppers at the moment of consideration. Retargeting via Sponsored Display reaches shoppers who viewed your products but did not purchase.
Both ad types complement Sponsored Products by covering different stages of the funnel. Sponsored Brands builds awareness at the top, Sponsored Products captures high-intent searches in the middle, and Sponsored Display retargets and conquests at the bottom. A complete Amazon Ads strategy uses all three.
Amazon DSP: Reaching Amazon Shoppers on Your Shopify Store
Amazon DSP (Demand Side Platform) is the most powerful tool for Shopify merchants who want to leverage Amazon's audience data without selling on Amazon. DSP lets you serve display, video, and audio ads across Amazon-owned properties and the web, targeting audiences based on Amazon's rich shopping behavior data. The key differentiator: you can drive these ads to your Shopify store, not just to Amazon listings.
Audience targeting capabilities. Amazon DSP offers targeting based on: purchase history (people who bought products in your category), browsing behavior (people who browsed relevant products), lifestyle segments (outdoor enthusiasts, home decorators, tech early adopters), and lookalike audiences (people similar to your Amazon customers or website visitors). This data is uniquely valuable because it reflects actual purchase behavior, not just browsing or demographics.
Minimum investment and access. Amazon DSP has a managed service minimum of $35,000-$50,000. Self-service DSP is available through authorized agencies with minimums of $10,000-$15,000. For most Shopify stores, working with a DSP agency is the practical path to accessing this capability.
Use case for Shopify. Run Amazon DSP ads targeting shoppers who purchased from your Amazon competitor but drive them to your Shopify store where you control the customer relationship and keep full margin. This is one of the most sophisticated customer acquisition strategies available to DTC brands in 2026.
Cross-Channel Strategy: Amazon + Shopify
Product selection for Amazon. Do not sell your entire catalog on Amazon. Select 5-10 hero products that represent your brand well, have competitive pricing, and can absorb Amazon's fees while maintaining acceptable margins. Use Amazon to introduce customers to your brand, then convert them to direct Shopify customers for repeat purchases.
Amazon-to-Shopify conversion. Include product inserts in Amazon orders that drive customers to your Shopify store for exclusive products, better deals, or loyalty rewards. Build your email list from Amazon customers (within Amazon's terms of service) by offering valuable content that requires email signup. Use EA Email Popup & Spin Wheel on your Shopify store to capture the cross-channel visitors.
Unified analytics. Track both Amazon and Shopify revenue in a single dashboard. Tools like Sellerboard for Amazon and Shopify analytics provide platform-specific data. Combine them in Google Sheets or a BI tool for a unified view of your total ecommerce business performance.
Measuring Amazon Ads Performance for Shopify Sellers
Amazon advertising performance metrics differ from Google and Facebook. ACoS (Advertising Cost of Sales): ad spend divided by ad-attributed sales. Target 15-25% for established products, 30-40% for launch phase. TACoS (Total Advertising Cost of Sales): ad spend divided by total sales (including organic). This shows the true advertising efficiency including the halo effect of ads on organic ranking. ROAS (Return on Ad Spend): the inverse of ACoS. A 20% ACoS equals 5x ROAS.
Beyond Amazon-specific metrics, measure the cross-channel impact: Shopify traffic from Amazon-referred customers, email list growth from Amazon customers, and lifetime value comparison between Amazon-acquired and Shopify-acquired customers. The goal is not just profitable Amazon sales but building a flywheel where Amazon feeds your Shopify ecosystem. Use EA Upsell & Cross-Sell and EA Auto Free Gift & Rewards Bar to maximize the value of every cross-channel customer who lands on your Shopify store.
Frequently Asked Questions
Do I need to sell on Amazon to use Amazon Ads?
For Sponsored Products, Sponsored Brands, and Sponsored Display, yes, you need active Amazon listings. However, Amazon DSP can drive traffic to your Shopify store without Amazon listings, using Amazon's audience data for targeting. Many brands use both: Amazon listings for marketplace sales and DSP for driving traffic to Shopify.
How much should I budget for Amazon Ads as a Shopify seller?
Start with $500-$2,000/month for Sponsored Products on your Amazon listings. Allocate 10-15% of expected Amazon revenue to advertising. Amazon DSP requires minimums of $10,000-$50,000, typically managed through an agency. Start with Sponsored Products and expand to DSP as your Amazon presence matures.
What is a good ACoS for Amazon advertising?
Target 15-25% ACoS for established products with good organic ranking. During product launch, 30-40% ACoS is acceptable as you build reviews and ranking. TACoS (Total Advertising Cost of Sales) is a better metric: target 10-15% TACoS once products are established.
Can I drive Amazon shoppers to my Shopify store?
Amazon DSP allows you to target Amazon shoppers with ads that drive to your Shopify store. Product inserts in Amazon orders can also direct customers to Shopify for exclusive offers. You cannot directly link Amazon listings to your Shopify store, but cross-channel strategies effectively bridge the two platforms.
How do I choose which products to sell on Amazon vs. Shopify only?
Sell hero products with competitive margins on Amazon for brand exposure and customer acquisition. Keep exclusive products, bundles, and subscription offers on Shopify only for margin protection. Products with 40%+ gross margin that can absorb Amazon fees (15-20%) while remaining profitable are ideal Amazon candidates.