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Geo-Targeting on Amazon: Does It Matter, and How Can You Use It?

Have you ever noticed that your Amazon ad campaigns perform better in one region than another, even when all other factors are the same? That’s not random. It’s geo-targeting in action.

While many sellers focus solely on keywords and budgets, a less obvious factor, where your customer is located, can quietly make or break your performance.

In fact, according to a Statista survey, over 60% of U.S. online shoppers consider fast and free delivery as important criteria when choosing a delivery option. Location plays a significant role in meeting these expectations.

In this blog, we’ll break down how geo-targeting works on Amazon (even if it’s not as obvious as on Facebook or Google), why it matters more than you think, and how you can apply it to increase conversions.

What Is Geo-Targeting?

Geo-targeting refers to displaying ads or adjusting offers based on a shopper’s physical location. It's a common practice on platforms like Google Ads or Facebook, where you can choose specific cities or ZIP codes. But on Amazon, it works differently.

Amazon determines the shopper’s location based on device data, account info, shipping address, and browsing habits, and uses that to optimize search results, ad placements, and delivery promises.

How Amazon Handles Location-Based Targeting

Although Amazon doesn’t allow direct geographic targeting in Seller Central ads, it still prioritizes local relevance. Products stored closer to a customer often rank higher, especially when they qualify for faster Prime delivery. The Buy Box also favors listings that can ship faster and cheaper from nearby fulfillment centers.

Amazon DSP (Demand-Side Platform) allows true geo-targeting, including by ZIP code or household, but it requires a higher ad budget and access.

Why Geo-Targeting Matters More Than You Think

Regional Buying Behavior Trends

Not all regions shop the same. Think mosquito repellent in Florida vs. Seattle, or winter boots in Toronto vs. Dallas. Understanding local behavior improves inventory planning and marketing timing.

Lower ACoS and Better ROAS

By identifying which regions convert well, you can avoid wasting ad spend where results are poor and focus your budget for better performance.

Faster Shipping = Higher Conversions

Amazon favors products with faster delivery. When your inventory is near your customers, you gain visibility and conversions.

Geo-Targeting Strategies You Can Use Today

Use Amazon DSP for True Geo-Targeting

DSP allows highly targeted ads by ZIP code, metro area, or household. It’s ideal for advertisers spending $10,000+/month looking for advanced targeting capabilities.

Segment PPC Campaigns by Region (Workaround)

Even without DSP, you can split campaigns by country or marketplace, analyze performance separately, and optimize based on results.

Tailor Product Listings for Regional Preferences

Customize keywords, images, and even language based on regional culture or seasonality. Example: Add French keywords in Canada to reach Quebec shoppers.

How Geo-Targeting Impacts Inventory, Fulfillment and Pricing

Regional Inventory Placement

Ship inventory in batches to fulfillment centers near your best customers. This improves shipping speed and Buy Box eligibility.

Dynamic Pricing by Region

Advanced sellers can use pricing tools to automatically adjust prices based on regional demand and competition.

Common Mistakes and What to Avoid

  • Ignoring local trends or events: Seasonal changes, local emergencies, or sports events can impact buying behavior instantly.
  • Over-segmenting too soon: Don’t split campaigns before you have enough data. Wait for clear trends.
  • Using U.S.-only strategies in other regions: Localize listings and strategies to each country or marketplace.

How to Measure Success with Geo-Targeting

Key Metrics to Track:

  • Conversion rate by region
  • ACoS or ROAS per marketplace
  • Inventory turnover by fulfillment center
  • Buy Box wins by location

Helpful Tools:

  • Amazon Brand Analytics
  • Amazon DSP Dashboard
  • Helium 10, Perpetua, or Sellics
  • Google Trends

Should You Invest in Geo-Targeting?

If you’re running Amazon campaigns without factoring in location, you’re likely missing out on easy wins.

Geo-targeting may not be a visible option in Amazon Ads Manager, but it influences nearly every part of your campaign performance—from ad visibility to conversions and fulfillment.

Whether you’re using advanced DSP campaigns or just adjusting listings for seasonality, thinking locally will help you perform better globally.