It’s important to understand how Amazon’s system operates:

Amazon’s Strategy Behind Reduced Sales:

Even after spending large amounts on ads, Amazon often does not guarantee consistent sales.

Reduced sales may trigger sellers to increase their ad budgets, thereby boosting Amazon's revenue.

By controlling factors like regional visibility, buy box access, and page ranking, Amazon creates a cycle that pressures sellers into spending more without delivering the expected results.

Tactics Suppressing Ad Performance:

Keyword Suppression: Sellers may notice that keywords generating sales at one point suddenly stop performing. This is often due to algorithmic changes by Amazon.

Amazon may suppress high-potential keywords to force sellers into testing new ones, which results in additional ad spending.

These high-performing keywords might then be leveraged internally by Amazon for its own product sales or preferred sellers.

Suggested Action – Reduce Ad Spend Strategically:

Even after optimizing ads, avoid overspending. Instead, analyze which campaigns are truly effective and focus on long-term strategies like organic growth, product differentiation, and targeting repeat customers.

Understand that ad spend alone won’t guarantee sales; building a loyal customer base outside Amazon may provide better returns.

Key Takeaway:

Amazon’s algorithmic changes and ad policies are designed to prioritize their revenue. Sellers should adapt by reducing ad spends strategically, focusing on high-impact campaigns, and exploring alternative platforms or direct customer engagement.