Updated on 9 November 2026 by Nicolas Finet, CEO of Sortlist. This guide has been rewritten for UK sellers and brands in 2026: it explains what Amazon Marketing Services (AMS) has become (Amazon Ads), the main ad types, how to set up a campaign, benchmark ranges for conversion rate and ACoS, the 2026 changes to referral fees and how to judge profitability.
Amazon Marketing Services was the original name of Amazon's self-serve advertising platform for sellers and vendors. It is now called Amazon Ads, and reports in 2026 suggest that Amazon has been rebranding its tools again. The principles remain: pay to appear in high-intent shopping results, and manage spend against profit. This guide explains how to do it in the UK.
Key takeaways
- AMS is now Amazon Ads. UK brands can run Sponsored Products, Sponsored Brands, display and streaming TV ads, plus Amazon DSP. Platform names change, so check Amazon's current labels.
- Benchmarks vary widely: one 2026 review puts Sponsored Products conversion at 10%-18% and platform average ACoS at about 25%-30% in 2025, projected to rise in 2026 as cost per click climbs.
- Advertising must be judged against margin: calculate your break-even ACoS before you set a budget, and include Amazon's fees, which changed for several categories in 2026.
What is Amazon Marketing Services, and how does it work?
Amazon's advertising platform lets sellers and vendors pay to promote products within Amazon's search results, product pages and other placements. Most formats work on a pay-per-click basis: you bid on keywords or products, and you pay when a shopper clicks. Because the audience is already shopping, intent is high.
Amazon advertising in the UK is bought through Amazon Ads, whose tools include Sponsored Products, Sponsored Brands, display ads, streaming TV and Amazon DSP, according to a UK agency's October 2026 overview, which also reports that Amazon renamed its ad platform in late September 2026. Interfaces and names change often, so check the current dashboard.
Why does it matter for your business?
- Visibility: organic ranking on Amazon is competitive, and ads can give new products early visibility.
- Intent: shoppers are close to buying.
- Measurable: you can see impressions, clicks, orders and sales by keyword.
- Sales rank effects: ad-driven sales can support organic ranking, though results vary.
- Competition: if competitors advertise on your brand terms, not advertising can cost you sales.
Setting up an Amazon Ads campaign
- Sign in with your seller or vendor account. Brand registry unlocks additional formats and features.
- Choose products (ASINs) that are in stock, competitively priced, with good images, reviews and listing copy. Ads cannot fix a weak listing.
- Select an ad type and name the campaign clearly, for example by product and match type.
- Set budget and bids. Start with a daily budget you are comfortable testing and a bid based on your target ACoS.
- Define targeting: automatic targeting lets Amazon find relevant searches; manual targeting lets you choose keywords, products or categories.
- Add negative keywords to avoid irrelevant clicks.
- Launch, monitor and optimise weekly: review search term reports, pause poor performers, raise bids on profitable terms and harvest successful keywords into manual campaigns.
Advertising options
| Format | What it does | Best for |
|---|---|---|
| Sponsored Products | Promotes individual listings in search results and on product pages | Almost all sellers; the main workhorse |
| Sponsored Brands | Banner or video with logo and several products, at the top of search | Brand awareness and range promotion (needs brand registry) |
| Display ads | Targets audiences on and off Amazon, or product pages | Retargeting and defence of your product pages |
| Streaming TV and video | Video ads in Amazon's streaming inventory | Larger brands and awareness |
| Amazon DSP | Programmatic buying on and off Amazon | Advertisers with scale and agency support |
Benchmarks: conversion rate and ACoS
ACoS (advertising cost of sale) is ad spend divided by ad-attributed sales. ROAS is its inverse. Benchmarks differ by dataset and category, so use them as context.
| Metric | Reported 2026 range |
|---|---|
| Sponsored Products conversion rate | About 10%-18% |
| Sponsored Brands conversion rate | About 8%-12% |
| Display conversion rate | About 5%-10% |
| Platform average ACoS | About 25%-30% in 2025, projected 32%-35% in 2026 |
| Top advertiser accounts | About 22%-26% ACoS (around 4x-4.5x ROAS) |
“Category medians disagree by up to 27 points between datasets.”
SellerForge, Amazon PPC benchmarks by category (2026)
Figures come from seller-tool and agency publications and are mostly based on US data, so UK results will differ. Your own break-even is the number that matters.
Is it profitable? Fees and break-even ACoS
Advertising must be paid for out of your margin after product cost, Amazon's fees and shipping.
- Referral fees: Amazon reduced referral fees for some UK categories in 2026: for example, clothing and accessories items between £15 and £20 fell to 12%, home products up to £20 to 8%, and some pet, grocery and vitamin items up to £10 to 5%, according to a UK accountant's summary. Check Amazon's current fee schedule.
- Fulfilment fees (if using FBA), storage and returns.
- Break-even ACoS = your profit margin before advertising. If your margin is 30%, an ACoS above 30% loses money on the first sale. Launch campaigns may run above break-even to build reviews and ranking, with a plan to reduce it.
Example: a £25 product with £8 product cost, £6 Amazon fees and shipping and £11 margin has a break-even ACoS of 44%. If the target is to make at least £5 profit after ads, the maximum ad cost per sale is £6, or an ACoS of 24%.
For fulfilment and operations, see Amazon FBA tips and ecommerce fulfilment services. For PPC basics, read Amazon PPC.
Best practices
- Optimise the listing first: title, images, bullets, A+ content, reviews, price and stock.
- Start with automatic campaigns, then move proven terms to manual exact-match campaigns.
- Use negative keywords to cut wasted spend.
- Protect your brand terms with Sponsored Brands or Sponsored Products.
- Segment by margin: bid more on high-margin products.
- Watch out of stock and Buy Box issues: ads for products that are not winning the Buy Box waste money.
- Review weekly and avoid constant tinkering based on small data.
- Measure beyond ACoS: total sales, organic rank and TACoS (advertising cost as a share of total sales).
Rules and compliance in the UK
- Ad claims must be accurate and substantiated; the CAP Code applies. Amazon also has its own ad policies.
- Reviews: do not manipulate or incentivise reviews. UK consumer law bans fake reviews.
- Product compliance: safety, labelling and trade mark rights must be in order before you advertise.
If you outsource management, see how to hire an agency and online advertising costs.
Frequently asked questions about Amazon advertising
What is Amazon Marketing Services (AMS)?
The former name of Amazon's self-serve advertising platform, now Amazon Ads, used to promote products on Amazon.
How much does Amazon advertising cost?
You set the budget and bids. Cost per click varies by category and competition, and reported average ACoS levels are about 25%-30% with rising costs in 2026.
What is a good ACoS?
One below your break-even margin. Benchmarks suggest top accounts run around 22%-26%, but your own margins matter most.
Which ad type should I start with?
Sponsored Products, then Sponsored Brands if you have brand registry and a range of products.
Do ads improve organic ranking?
Ad-driven sales can support ranking, but results vary and there is no guarantee.
Should I hire an agency?
If you lack the time or expertise, or have a large catalogue, an Amazon specialist can help. Ask about fees, reporting and access to your account.
Want to grow on Amazon? Post your project on Sortlist and compare UK ecommerce and Amazon agencies for free.
Sources: SalesDuo, Amazon advertising benchmarks, Sequence Commerce, benchmarks, SellerForge, PPC benchmarks, Mr Prime, Amazon advertising UK, Elver, Amazon fees. Benchmarks are mostly US-based and indicative; the worked example is hypothetical.
