What is Amazon’s Marketing Strategy?

Written by: Ryan Flannagan
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Amazon is the biggest online retailer in the world. How did it get there? Read on to learn about Amazon’s marketing strategy.

Amazon didn’t become the world’s largest online retailer due to luck. Many different components were required, with the company’s marketing strategy being one of the cornerstones of its success.

That Amazon marketing strategy is a study point for global organizations, budding entrepreneurs, and everyone in between. Yet that begs the question: Just what is Amazon’s marketing game plan?

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The 4Ps: the pillars of the Amazon marketing strategy

The 4Ps, also known as the marketing mix, is a common approach utilized by organizations with their marketing strategy. Amazon is no different. The 4Ps comprise:

  • Product
  • Price
  • Place
  • Promotion
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Every business needs something to sell. While Amazon may have started out as an online bookstore, they have expanded exponentially since those days. Now they sell millions of products, ranging from clothing to chocolate and video games to toy airplanes. This also includes everything from goods by small independents to Amazon’s own branded products.

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Competitive pricing is a big part of Amazon’s strategy. They adjust to either match or supersede the competition’s own pricing. When combined with their enticing delivery options – particularly for those subscribed to Amazon Prime – consumers will often opt for the retail giant.

Amazon doesn’t stop there. They also incorporate behavioral and promotional pricing, making changes on a daily basis to stay ahead of the pack.

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From a logistics point of view, Amazon is far ahead of everyone. It ships to more than 100 countries worldwide, and its network currently boasts over 185 fulfillment centers to complete deliveries. The result: it is able to get Amazon products out to many, many customers – even those in remote locations.

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As you’d expect from a company with the bulk of the market share, Amazon utilizes a multichannel marketing strategy to promote its business. TV, billboard, website, newspaper, etc., ads, email marketing, social media, and many other channels are used. They also have an affiliate program where a lot of the marketing is done by other businesses.

With regular sales and discounts, alongside its reputation and product range, it’s easy to see why Amazon is a promotional powerhouse.

Amazon and Social Media

As touched upon in the previous section, social media plays an important role in the Amazon marketing strategy. Knowing that virtually everyone is on the likes of Twitter, Facebook, and Instagram, Amazon takes full advantage of this area of digital marketing.

Whether it’s Pinterest or YouTube, Amazon will display ads that will improve brand awareness and get people interested in their latest offerings – whether that is a special deal, spotlighting a certain service, and so on. It’s all about keeping the Amazon brand in the consciousness of potential buyers.

Amazon doesn’t just use these platforms directly to generate sales, either. They also add influencers, both big and small, into their promotional repertoire. Due to the aforementioned Amazon affiliate program, many will also promote the company via their own initiative. For a small cut of the selling price, they will link to product pages and advertise what is on offer from specific products.

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Marketing Channels for Amazon Sellers

Along with its own multichannel marketing channels, Amazon also ensures sellers on the platform have access to promotional tools to advertise their products effectively. When it comes to Amazon marketing services, they provide three main pay-per-click (PPC) ad groups to choose from. These are:

  • Headline Search Ads
  • Product Display Ads
  • Sponsored Product Ads
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Headline Search Ads

If your brand sells multiple related products, one of the savviest advertising options on Amazon is undoubtedly Headline Search Ads. As the name suggests, this PPC ad type gives your products the headline spot – aka the very top of the search results page – for maximum visibility.

Unlike standard product ads, Headline Search Ads give you greater scope to promote your products. As well as being able to advertise multiple products in one banner, there’s also space to give your brand the limelight. The latter includes adding your brand logo alongside a message of up to 50 characters.

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Sponsored Display Ads

What can you do to retarget potential customers that have looked at your products? Amazon gives you this power through Sponsored Display Ads. With this ad type, if someone has previously looked at your product listings, you are able to remarket to them with an ad that effectively reminds them of what they missed out on by not making the purchase in the first place.

It’s not just about reaching previous leads. You are also able to target people that have a vested interest in the type of products you sell. You’re able to place these ads in front of people that have bought a product from you before, used relevant search terms, and those that have browsed similar products.

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Sponsored Product Ads

Another Amazon PPC option is Sponsored Product Ads. This ad choice allows you to get your product listings in prominent positions within Amazon search results. Think of it like using Google Ads, where you place your website content above organic traffic. It is an instant shortcut to the top.

With a high conversion rate of approximately 10%, Sponsored Product Ads are also proven to deliver results.

Amazon SEO: Getting to the Next Level

Amazon uses a lot of multichannel marketing tools to ensure its marketplace is #1. Amazon supplies you with a lot of tools to get your products in front of your target audience. However, Amazon cannot do it all – there’s still work to do on your part.

Optimizing your product listings is the start. This includes using the right keywords, bullet points to cover the main features, eye-catching images, and descriptive writing. Pricing needs to be competitive, and reviews must be encouraged, leaning into Amazon offers is necessary, and so on.

This is where Amazon consultant services can help. There are a lot of things to consider selling on Amazon. There’s also a lot of competition. Due to this, Amazon marketing services can help to cover a lot of gaps, ensuring your product listings are optimized and getting found by the right people.

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Ryan Flannagan

Ryan Flannagan

Ryan Flannagan is the Founder & CEO of Nuanced Media, an international eCommerce marketing agency specializing in Amazon. Nuanced has sold $100s of Millions online and Ryan has built a client base representing a total revenue of over 1.5 billion dollars. Ryan is a published author and has been quoted by a number of media sources such as BuzzFeed, CNBC, and Modern Retail.

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