Amazon DSP 101: Elevate Your Brand with Precision Advertising

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In today’s competitive and ever-evolving world of digital advertising, reaching the right audience at the right time is more crucial than ever. Amazon DSP offers a game-changing solution, combining the precision of programmatic advertising with the unparalleled reach of Amazon’s vast ecosystem. Whether you’re aiming to enhance brand awareness, drive sales, or re-engage potential customers, Amazon DSP equips you with the tools to craft powerful, data-driven campaigns that connect with your ideal customers. In this blog, we’ll dive into what Amazon DSP is, how it works, and how you can harness its full potential to elevate your advertising strategy.


What is Amazon DSP?


Amazon DSP or Demand-Side Platform, is a programmatic advertising platform that allows advertisers to buy video, display, and audio ads both on Amazon and across the web. It enables brands to reach Amazon shoppers and other audiences through targeted ads, leveraging Amazon’s vast amount of first-party data.


Key Components of Amazon DSP


1. Audience Targeting - Amazon DSP offers advanced targeting options, including demographic, lifestyle, and in-market segments, as well as retargeting capabilities to reach users who have interacted with your brand.


2. Creative Options - Advertisers can choose from various ad formats, including display banners, video ads, and audio ads, making it versatile for different campaign goals.


3. Reporting and Analytics - The platform provides comprehensive reports that offer insights into campaign performance, audience behavior, and more, allowing for data-driven decision making.


4. Programmatic Buying - Amazon DSP uses automated, real-time bidding to place ads, ensuring that ads reach the right audience at the optimal time.


Types of Managing Amazon DSP


When managing Amazon DSP campaigns, advertisers have two primary options: Self-Service and Managed Service. Each option offers different levels of control, support, and cost, depending on your needs and experience with programmatic advertising.


1. Self-Service


With the self-service option, you have complete control over all aspects of the campaign, including targeting, budgeting, and creative strategies. You can make real-time adjustments and optimizations as needed. Typically, there’s no minimum spend requirement, making it a more flexible option for advertisers with varying budgets.


2. Managed Service


The managed service option involves working directly with Amazon’s team, who handle all aspects of the campaign on your behalf, from setup to optimization. This means that you get access to Amazon’s team of experts who will manage and optimize your campaigns, leveraging their experience and insights.The managed service often includes advanced optimization techniques and strategic guidance to help maximize your campaign’s performance.


How Much Does Amazon DSP Cost?


The cost of using Amazon DSP varies depending on several factors, including the scope of your campaign, targeting options, ad formats, and overall budget. Here are some key points to consider:


1. For managed service through Amazon DSP, there is typically a minimum spend requirement, which can range from $35,000 to $50,000, depending on the region and the campaign goals.


2. If you choose the self-service option, you have more flexibility with your budget, and there’s generally no strict minimum spend requirement. However, you will need to manage the campaigns on your own or through an agency, which can affect overall costs.


3. Ad Format Costs: The cost can vary based on the type of ad formats you choose. For example, video ads typically cost more than display ads due to higher production and engagement levels.


4. Bidding Model: Amazon DSP uses a real-time bidding (RTB) model, where the cost is determined by the competition for the target audience. The more competitive the audience segment, the higher the cost per impression (CPM).


Where are Amazon DSP Ads Shown?


Amazon DSP ads are shown across a wide range of platforms, both within the Amazon ecosystem and on third-party websites and apps. Here’s where you can expect your Amazon DSP ads to appear:


1. Amazon-Owned Properties


Amazon.com: Ads can appear on Amazon’s main site, including product detail pages, search results pages, and the homepage.


IMDb: Display and video ads can be shown on IMDb, which is owned by Amazon, reaching an audience interested in movies, TV shows, and entertainment.


Fire TV: Ads can be displayed on Amazon’s streaming platform, Fire TV, reaching users while they browse or watch content.


Amazon Devices: Ads may also appear on Amazon devices like Kindle and Echo, offering unique placements to reach users directly through these devices.


Amazon Music: Audio ads can be placed on Amazon’s music streaming service, reaching listeners as they enjoy their favorite songs and podcasts.


Twitch: Ads on Twitch, the popular streaming platform owned by Amazon, are available, targeting a highly engaged audience, particularly in the gaming community.


2. Third-Party Websites and Apps


Amazon Publisher Services - Amazon DSP provides access to a network of third-party publishers, allowing ads to appear on high-quality websites and apps outside of Amazon’s own properties.


Ad Exchanges - Through real-time bidding, Amazon DSP places ads on various ad exchanges, extending reach across the broader internet.


Mobile and Desktop Platforms - Ads can be shown on mobile apps, mobile web, and desktop sites, ensuring that your campaign reaches users across all devices.


3. Video and Audio Platforms


Video Platforms - Amazon DSP supports video ad placements, allowing your ads to be shown on popular video platforms, including Amazon’s own IMDb TV and other partner networks.


Audio Streaming Services - Audio ads can be played on Amazon Music and other partnered audio streaming services, engaging users while they listen to music or podcasts.


Creative Types in Amazon DSP


Amazon DSP offers a range of creative ad types to help advertisers reach their target audiences effectively across different platforms. These include:


Display Ads - Static banners, dynamic ads personalized based on user behavior, responsive eCommerce ads, and custom image ads that provide creative freedom.


Video Ads - In-stream video ads that play before, during, or after video content, out-stream ads that appear in articles or social feeds, and OTT ads shown on connected TV devices.


Audio Ads - Streaming audio ads and companion banners that reinforce the audio message visually.


Rich Media Ads - Interactive ads like expandable, shoppable, and other rich media formats that enhance user engagement.


Native Ads - Ads that blend seamlessly with the content on the page for a less intrusive experience.


Custom Ads - Tailored experiences such as microsites and interactive storytelling to create a memorable brand presence.


These options allow advertisers to select the most suitable formats for their campaign goals, enhancing brand awareness, engagement, and conversions.


Types of Targeting in Amazon DSP


Amazon DSP offers a range of precise targeting options, leveraging Amazon's first-party and third-party data to ensure ads reach the right audiences. The main targeting types include:


Audience Targeting - Reaches users based on their in-market behavior, lifestyle, demographics, and interests.


Behavioral Targeting - Focuses on retargeting and remarketing users who have interacted with your brand or made past purchases.


Contextual Targeting - Delivers ads relevant to the content users are viewing, including keyword-based and content-based targeting.


Device Targeting - Ensures consistent messaging across multiple devices, including connected TV.


Geographic Targeting - Targets users based on their location, down to specific regions or areas.


Lookalike Targeting - Expands reach by targeting new users similar to existing customers.


Dayparting and Frequency Capping - Controls when and how often ads are shown to avoid overexposure.


Custom Segments - Allows highly specific audience creation using your own data or Amazon interactions.


These targeting options enable advertisers to deliver personalized and relevant ads, boosting engagement and conversion rates.


Ready to Elevate your Digital Marketing Strategy?


As the digital advertising landscape continues to evolve, Amazon DSP offers a powerful platform to connect with your target audience in meaningful and impactful ways. With its sophisticated targeting options, diverse ad formats, and access to vast first-party data, Amazon DSP allows you to craft campaigns that resonate deeply with consumers and drive tangible results.


Don’t let your brand miss out on the opportunity to reach the right customers at the right time. Start leveraging the power of Amazon DSP today and watch your marketing efforts reach new heights. Whether you’re looking to boost brand awareness, re-engage past customers, or drive conversions, Amazon DSP has the tools you need to achieve your goals. Ready to take the next step?  Contact us here or book a zoom call to explore how Amazon DSP can be the catalyst for your brand’s success.

Price Wars on Amazon: How to Maintain Brand Value Without Undercutting Yourself

By William Fikhman • June 3, 2025
Amazon’s marketplace is vast, powerful, and fiercely competitive. With millions of sellers and algorithms that heavily favor competitive pricing, it’s easy for brands to feel pressured into lowering prices just to survive. But here’s the harsh truth: engaging in price wars may boost short-term sales—but at the cost of long-term brand value, profitability, and sustainability. As an experienced Amazon agency offering end-to-end brand support, we’ve witnessed how destructive pricing battles can be for brands that once held strong positioning. In this blog, we’ll break down what Amazon price wars are, why they occur, how they hurt your business, and most importantly, how to stay competitive without slashing prices. What Are Amazon Price Wars? A price war occurs when multiple sellers continuously undercut each other’s prices to win the Buy Box or capture more market share. This tactic is especially tempting on Amazon, where winning the Buy Box can mean the difference between success and obscurity. Amazon’s algorithm favors the lowest total price (including shipping), which leads sellers to believe that slashing their prices is the only way to gain visibility. However, while that approach might earn temporary wins, it initiates a race to the bottom where everyone loses: margins evaporate, brand trust erodes, and long-term viability is compromised. How Do Price Wars Start on Amazon? The price war spiral typically follows a predictable pattern: 1. Sellers Chase the Buy Box The Buy Box is Amazon’s holy grail. Sellers know that over 80% of conversions come from this placement. To win it, many sellers lower their prices, often significantly assuming it’s the only metric that matters. 2. Competitors React Once one seller drops their price, others follow suit. This tit-for-tat cycle continues until prices dip below profitability. 3. Profitability Collapses With multiple sellers cutting prices aggressively, margins vanish. Sellers may move high volumes, but each unit sold generates negligible or even negative profit. The worst part? Buyers now expect those lower prices. 4. Reputation Erodes Customers become suspicious when prices drop too low, assuming inferior quality or desperate liquidation. The brand’s perceived value takes a hit, and the long-term damage outweighs any short-term gains. Why Brands Should Avoid Price Wars Before diving into strategies, let’s address why price wars should be avoided at all costs: ✘ Shrinking Profit Margins Lowering prices diminishes profit margins and often doesn’t leave room to reinvest in essential aspects like advertising, logistics, or product development. For brands looking to scale, profit erosion is a death sentence. ✘ Unsellable Inventory Once prices dip too low, inventory loses perceived value. You may be forced to liquidate at or below cost, or worse, sit on unsellable stock. This puts strain on cash flow and disrupts reordering cycles. ✘ Brand Devaluation Your price is a key element of your brand. Slashing it repeatedly teaches customers that your products are only worth buying on discount. Over time, this cheapens brand equity and makes it harder to justify premium pricing—even for new products. ✘ Market Instability Constant price fluctuations cause confusion and instability in the marketplace. Your sales velocity may spike temporarily, but it becomes inconsistent and unpredictable—making it impossible to forecast or scale strategically. The Smart Seller’s Playbook: How to Avoid Price Wars on Amazon Price competitiveness matters—but that doesn’t mean you have to be the cheapest. Let’s explore strategic, proven methods for staying competitive without engaging in destructive price battles. 1. Build a Strong Brand Identity Price becomes irrelevant when customers want your brand. Branding is more than logos and packaging. It’s about storytelling, values, consistency, and customer trust. When your product and brand convey a clear, desirable identity, customers are less likely to shop based on price alone. Tactics: Optimize A+ Content to communicate your brand story and benefits. Use Brand Story modules to highlight your mission and value proposition. Incorporate lifestyle imagery and UGC to build emotional connections. Result: A well-branded product shifts the customer mindset from “What’s the cheapest?” to “This is the one I trust.” 2. Focus on Product Differentiation If your product is a commodity, price will always dominate. But if you differentiate effectively, you reduce the chances of direct comparison. Tactics: Offer unique bundles or variations (exclusive scents, colors, sizes). Highlight proprietary features or ingredients that competitors can’t replicate. Focus on packaging, customer experience, and added value. Example: Instead of selling a “vitamin C serum,” position it as a “clinically proven, dermatologist-formulated brightening treatment” with a proprietary blend not found elsewhere. 3. Control Your Distribution Channels Many brands unknowingly trigger price wars by losing control of their distribution. Unauthorized resellers, wholesalers, or retail arbitrage sellers can undercut prices without regard for your brand's strategy. Tactics: Use Amazon Brand Registry to protect intellectual property. Set clear pricing policies with authorized resellers. Monitor unauthorized listings and issue cease-and-desist notices when necessary. Enforce Minimum Advertised Price (MAP) policies where legally applicable. 4. Invest in Customer Experience A great product alone isn’t enough. Enhancing the entire customer journey increases perceived value, making price a secondary factor. Tactics: Provide exceptional customer service with fast, clear communication. Follow up post-purchase with branded emails or insert cards. Solicit and highlight positive reviews through legitimate request flows. Bonus: Satisfied customers often become repeat buyers—reducing your cost per acquisition and increasing lifetime value. 5. Monitor Pricing Trends, But Don’t React Emotionally Analyzing pricing trends is vital—but knee-jerk reactions to competitors’ discounts are what fuel price wars. Instead, develop a measured pricing policy. Tactics: Use historical data to identify seasonal price dips and plan promotions accordingly. Wait for lower-priced competitors to sell out before adjusting your pricing. Price for profit first, not the Buy Box alone. CMO Insight: “Winning the Buy Box at the cost of margin isn’t winning—it’s bleeding disguised as victory.” 6. Prioritize High-Margin Products in Your Catalog Not all products deserve equal promotional effort. A good strategy involves selecting SKUs with built-in margin flexibility and scalable potential. Tactics: Audit your catalog to identify hero products with the best profit margins. Reduce reliance on ultra-competitive, low-margin SKUs. Launch premium-tier versions of your products for added value. 7. Treat Advertising as a Profit Driver, Not Just a Sales Lever Advertising can offset the need for price cuts by driving visibility and conversions. But it must be approached as part of a larger profit optimization plan.  Tactics: Optimize PPC campaigns with ACOS/ROAS targets that support your margins. Bid strategically on long-tail, high-intent keywords. Use Sponsored Brands and DSP to boost branded traffic. Key Point: The more you lean on branding and ads for visibility, the less you need to manipulate pricing. Frequently Asked Questions About Amazon Price Wars Q: Should I always lower prices to win the Buy Box? No. Winning the Buy Box depends on more than just price—shipping speed, seller rating, order defect rate, and other factors matter too. Always consider whether the margin loss is worth the temporary visibility boost. Q: What if a competitor drops their price drastically? Evaluate whether they’re a temporary disruptor (e.g., clearance sale) or a consistent player. Often, it’s better to wait them out. Don’t sacrifice long-term strategy for short-term panic. Q: Can I prevent other sellers from undercutting me? Yes, to an extent. With Brand Registry, you gain control over your listings. Combine that with MAP policies, strict distributor agreements, and proactive monitoring to maintain pricing integrity. Q: Is it better to offer bundles instead of discounting single units? Absolutely. Bundles can increase perceived value and average order value while maintaining healthy margins. Plus, they’re harder to compare directly with competitor listings. Final Thoughts: Brand Value Is Your Most Powerful Weapon In the chaotic arena of Amazon price wars, your brand is your best defense. Yes, pricing matters but it shouldn’t define your entire strategy. The most successful sellers maintain profitability by building brand loyalty, creating differentiated products, and controlling their listings with a long-term vision in mind. If you’re tired of racing to the bottom and want a strategic partner who understands the full Amazon lifecycle—from optimization and ad management to brand protection and catalog growth—our team is here to help. Sustainably scale. Stay profitable. Preserve your brand’s worth. Need help breaking free from the price war trap? Talk to our CMO -led Amazon strategy team and learn how to reclaim control of your margins while building a brand that lasts.
Amazon is a company that sells a variety of products.

How to Find Winning Products to Sell on Amazon: Your Ultimate Guide for Success

By William Fikhman • June 2, 2025
If you're thinking about becoming an Amazon seller or you’ve recently signed up, one of your first and most critical questions is likely: What should I sell? Choosing the right product can determine whether you thrive or flounder in the world’s largest online marketplace. With more than a billion items sold by Amazon selling partners in the U.S. and an average annual sales jumping to over $250,000 per seller, there’s no doubt that selling on Amazon is a lucrative opportunity. But getting a slice of that pie starts with smart product research. In this guide, we’ll explore how to generate product ideas using Amazon’s own tools, show you how to research, validate, and list your products, and give you tips for launching a brand that lasts. Whether you’re starting fresh or looking to expand, this blog will help you tap into Amazon’s vast ecosystem and prepare you to grow like a pro. Step 1: Understand What Makes a Great Amazon Product Not every product thrives on Amazon. The most successful items often share a few key characteristics: High demand, low competition Good profit margins Easy to package and ship Evergreen (sells year-round) Few moving parts or fragile components Before diving into Amazon tools, take stock of what matters most to your business: Do you want to build a brand? Resell trending products? Explore a niche hobby or market? With a clear goal in mind, you're better equipped to sift through opportunities and find your next bestseller. Step 2: 4 Smart Strategies to Spark Product Ideas If you’re stuck or unsure where to begin, start with these proven strategies: Put Your Own Spin on What’s Already Trending Look at popular products in your area of interest and ask: Can I do this better? Identify gaps by reading customer reviews. What do buyers love? What do they complain about? Target underserved audiences or needs. Can you tailor the product for a specific use case? Elevate the experience with better materials, more thoughtful packaging, or added features. Sometimes, success isn’t about reinventing the wheel—it’s about making a better one. Monitor Sales Metrics and Performance Trends Success doesn’t end with choosing the right product. You’ll need to continually track what’s working using Seller Central tools like: Brand Analytics dashboards Sales reports Customer feedback trends Account Health ratings Staying on top of these metrics helps you refine your offers and maximize your return. Get Inspired by Successful Sellers Stories of everyday entrepreneurs like Justin Dyson of Kids N’ Such , who scaled from $30K to $130K monthly sales prove you don’t need a massive budget to break through. Learn from their strategies and look at what kinds of products helped launch their brands. Conduct Deep Product Research The best ideas are backed by data. Go beyond gut feelings by: Browsing Amazon categories and subcategories Talking to potential customers Studying niche trends with eCommerce research tools Narrow your search from broad categories (e.g., Kitchen & Dining) to targeted niches (e.g., reusable meal containers). This makes it easier to identify winning opportunities. Step 3: Use Amazon’s Built-In Tools to Find Top Sellers Amazon offers a suite of free and paid tools that help you dig into sales trends, product demand, and competition. These include: Amazon Best Sellers Lists Updated hourly, these rankings show top-selling items in every category. Use them to: Identify high-performing niches Spot seasonal or trending products Benchmark against your own ideas Best Sellers Rank (BSR) Every product on Amazon has a BSR that reflects how well it sells in its category. Lower BSR = higher sales. Use this to evaluate product demand. Movers & Shakers This list highlights the biggest gainers in sales rank over the last 24 hours. It’s a real-time pulse of what’s hot. Hot New Releases Launching a new product? Use this list to track how similar items are performing—great for competitive research. Most Wished For See what customers want most even if they haven’t purchased it yet. This can be gold for planning inventory or marketing. Amazon Seller Mobile App Scan barcodes or ASINs on the go to check sales rank, pricing, and competition in real time. Product Opportunity Explorer This is Amazon’s ultimate data powerhouse. It offers detailed analytics including: Average units sold Niche saturation Seasonality Customer search volume and behavior Use this tool to validate demand before investing in a product. Step 4: Explore Product Categories with Proven Demand Do you still need inspiration? These are some of the top categories currently trending on Amazon: Beauty & Personal Care Think: hair growth oils, anti-aging creams, moisturizers, acne treatments. Kitchen & Dining Popular products include collapsible microwave covers, stainless steel tumblers, meat thermometers, and toddler sippy cups. Automotive From car cup holders to portable air compressors and interior cleaners, automotive accessories are in demand. Clothing, Shoes & Jewelry Items like shapewear, running shoes, yoga pants, and compression organizers are consistent bestsellers. Electronics USB wall chargers, Apple AirTags, Fire TV sticks, surge protectors, and smart tablets are constantly in demand. Appliances Compact ice makers, mini fridges, and portable washers combine convenience and size—perfect for eCommerce. Trends change rapidly, so always continue testing and researching to stay ahead of the curve. Step 5: Prepare Your Product for Launch A winning product idea isn’t enough. You also need to think about how to sell it. Here are some things to consider: Procurement: Source Your Products Will you resell, manufacture, or private label? Each has pros and cons. Make sure you work with reputable suppliers and validate product quality before scaling. Fulfillment: Choose a Shipping Method Amazon offers several fulfillment options: FBA (Fulfillment by Amazon): Amazon handles storage, shipping, and customer service. FBM (Fulfilled by Merchant): You ship the products yourself. Seller-Fulfilled Prime: Use your own warehouse while offering Prime delivery benefits. You can even mix fulfillment methods based on product type or inventory availability. Listing: Optimize Your Product Page First impressions matter. A great product listing includes: High-quality images and videos Clear, benefit-driven bullet points Keywords that match how customers search Competitive pricing Learn more in Amazon’s Listing Optimization Guide. Branding: Connect with Customers Once you enroll in Brand Registry, you can build a customizable storefront and share your brand story with rich content. This builds trust and drives conversions. Marketing: Promote and Scale Use Amazon Ads, SEO, influencer marketing, and email campaigns to drive awareness. Adjust your marketing tactics as you learn what resonates with customers. Step 6: Find Your Niche with Amazon’s Special Programs Amazon offers niche-specific programs to help you grow faster and more strategically. These include: Brand Registry: Unlocks A+ Content, sponsored brand ads, and brand protection tools. Amazon Handmade: For artisans and makers. Amazon Custom: For sellers offering personalized products. Merch by Amazon: Sell original designs with no upfront costs. Amazon Renewed: For selling refurbished or pre-owned goods. Mix and match these programs based on your goals and inventory.  Key Take-away: Stay Flexible, Stay Curious Ecommerce isn’t static. What’s selling today may fade tomorrow, and new opportunities pop up constantly. Stay agile, revisit your strategies often, and always continue researching. As you grow, lean on Amazon’s tools to make smart, data-backed decisions. From the Best Sellers list to the Product Opportunity Explorer, there’s no shortage of resources to help you launch your next hit. Conclusion: Let Chief Marketplace Officer Help You Scale with Confidence Building a thriving Amazon store takes more than good product ideas. It requires expertise across sourcing, fulfillment, listing optimization, branding, and data analysis. And while Amazon gives you the tools, you still need the right strategy to put them to work. That’s where a Chief Marketplace Officer (CMO) comes in. We bring full-spectrum Amazon brand management to your business, overseeing everything from product launch to advertising strategy to customer retention. With experience in navigating Amazon’s complex algorithms, policies, and trends, CMO is your secret weapon for scaling sustainably. Whether you're just starting out or looking to grow faster, we ensure every part of your Amazon operation runs smoothly and profitably. Ready to take your Amazon store to the next level? Hit our inbox and we’ll unlock the full potential of your brand!