Why You Should Try Retargeting Amazon Ads With Merch By Amazon

About this video

RJ Martinez explains how to use Amazon retargeting ads (Sponsored Display) with Merch by Amazon to rank products closer to the front page and convert shoppers who already viewed a product. He shares two of his own retargeting campaigns as creator-reported results: one spent about $409.63 and brought in close to $2,000 in sales, with over 400,000 impressions, about 2,000 clicks, 93 orders, and an ACoS around 20%; a second spent $358.12, brought in close to $1,900 in sales, about 1,900 clicks, 91 orders, and an ACoS close to 19%. For a $19.99 standard t-shirt he puts break-even ACoS around 27–28% and average royalty around $5.25, so he says he is comfortable letting ACoS rise to 28–29% because the goal is triggering the algorithm for organic ranking, not just ad profit. He then builds a campaign step by step: Create Campaign > Sponsored Display, name it with niche + ‘RT’/retarget + ASIN (his example is a Cinco de Mayo dabbing gnome that he says had made about six or seven organic sales, helped by a viral-ish TikTok/Instagram reel), set a small daily budget — start at $1–$5, explicitly not $100 — add the product by ASIN, choose Audiences targeting, and select purchase remarketing with a lookback window (30 days default; 60, 90, 180 or 365 days are options). On bidding, he switches bid optimization from ‘optimize for page visits’ (which he says his two example ads used) to ‘optimize for conversions’ to test it, and sets a default bid of $0.30 rather than Amazon’s $1 default, recommending starting low (around $0.20–$0.30), watching impressions to judge whether the bid is too low, and getting more aggressive once a campaign converts profitably. He stresses testing everything, keeping campaigns organized in portfolios by niche, and judging performance over a month or lifetime rather than day by day.

Key takeaways

• Retargeting (Sponsored Display audience/purchase remarketing) re-shows a product to past viewers; more exposures raise purchase chances and the resulting sales help trigger Amazon’s algorithm toward front-page ranking
• Creator-reported examples: ~$409.63 spend for close to $2,000 in sales (93 orders, ~20% ACoS) and $358.12 spend for close to $1,900 in sales (91 orders, ~19% ACoS)
• Know your break-even ACoS — he puts it at ~27–28% for a $19.99 shirt with ~$5.25 royalty — and be willing to approach it if ranking is the goal
• Setup: name campaigns niche + RT + ASIN, organize by portfolio, start budgets at $1–$5 a day, and use a 30-day (or longer) purchase-remarketing lookback
• Start bids low (his example $0.30, not the $1 default), monitor impressions to detect an under-delivering bid, and evaluate campaigns over a month or lifetime, not daily

Episode details: published April 8, 2022 · 15:25 long. Summary written by Self Growth Videos from the episode itself. Business results and any income figures mentioned are RJ Martinez’s own claims, shared for education — they are not typical or guaranteed.

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