How to Use Negative Keywords in Amazon PPC to Lower ACoS and Boost Profitability

Struggling to lower the ACoS on Amazon? You’re not alone.

High ACoS (Advertising Cost of Sale) campaigns can bleed your budget dry while bringing in minimal returns. Whether you're an established Amazon seller in the USA or registering as a new seller in India, controlling ad spend and increasing profitability is mission-critical.

That’s where Amazon negative keyword targeting comes in. This advanced yet simple tactic is a powerful Amazon PPC optimization tip that filters out the noise, sharpens your targeting, and ensures you’re spending your money only where it matters.

In this guide, we'll walk you through:

• What negative keywords are in Amazon ads

• How to identify wasteful search terms

• A step-by-step strategy to add negative keywords

• How to reduce Amazon ad spend and lower ACoS effectively

Let’s dive in.

What are Negative Keywords in Amazon Ads?

Negative keywords are specific words or phrases that prevent your ads from being triggered by irrelevant search queries.

For example, if you’re selling premium leather office bags, you don’t want to show up for searches like “cheap college bags” or “canvas travel bag.” These are low-converting, irrelevant, and will eat up your ad budget fast.

By adding “cheap,” “college,” or “canvas” as negative keywords, you tell Amazon: “Hey, don’t show my ad when shoppers use these terms.”

This simple action can significantly reduce your ad spend and increase your return on ad spend (ROAS).

Why Negative Keyword Targeting Is Critical for PPC Campaigns

Let’s quickly break down the top benefits of using negative keywords to optimize your Amazon advertising strategy:

1. Reduce Ad Spend Wastage

Irrelevant search terms can rack up thousands of impressions and hundreds of clicks, without converting. Negative keywords help eliminate this drain.

2. Improve Targeting Relevance

Your ads only appear for high-intent, relevant searches, improving click-through rate (CTR) and conversion rate.

3. Lower Sponsored Product Campaign ACoS

When your targeting becomes more precise, your spend-to-sales ratio (ACoS) drops naturally.

4. Gain More Control Over Campaign Performance

Negative keywords are a foundational part of any Amazon PPC campaign management system that aims to scale effectively.

Step-by-Step Guide to Lower ACoS Using Negative Keywords

Follow this actionable Amazon campaign optimization strategy to filter and eliminate wasteful keywords from your ad campaigns.

Step 1: Log in to Your Amazon Advertising Console

Start by accessing your Amazon Seller Central account. If you’re new to selling, make sure you’ve completed your Amazon seller registration in India or the USA.

Once inside:

• Go to the Campaign Manager

• Select the campaign you want to optimize

• Choose a suitable date range (e.g., Last 30 Days)

Step 2: Filter for High ACoS Campaigns

To identify the worst-performing campaigns:

• Filter campaign status to “Enabled”

• Click the ACoS column to sort in descending order

• Select campaigns with the highest ACoS first

These are your problem children—the ones likely wasting your budget.

Step 3: Dive Into Ad Groups and Search Terms

Click on one of the high ACoS campaigns. Inside:

• Navigate to the Ad Group section

• Pick the ad group with the highest ACoS

• Go to the “Search Terms” tab

Now, click Export to download the full report.

Step 4: Filter the Search Term Report

Open the exported report in Excel or Google Sheets. Now let’s isolate the biggest culprits.

Apply the following filters:

Filter Condition	Column Name	Reason
Impressions > 10,000	Impressions	Indicates high exposure
Spend > $4	Spend	Means you're burning ad budget
Orders ≤ 0	Orders	No conversions = wasted clicks

What you're left with is a list of high-impression, high-spend, non-converting search terms—prime candidates for negative targeting.

Step 5: Add Negative Keywords

Head back to your campaign in Amazon Seller Central.

• Click on the “Negative Keywords” tab

• Choose the appropriate campaign or ad group

• Select Exact Match or Phrase Match (based on what fits your product)

• Paste the identified keywords

Pro Tip: Add negative keywords to both Sponsored Product and Sponsored Brand campaigns for maximum coverage.

Watch our step-by-step video on how to use negative keywords to reduce ACoS on Amazon PPC and boost your ad performance.

Step 6: Monitor and Repeat

Give your changes 7–14 days to settle, then review the metrics:

• Has your ACoS dropped?

• Is your conversion rate better?

• Are you spending less for the same or more sales?

If yes, great! If not, continue filtering out underperforming terms regularly. Negative keyword targeting is not a one-time task—it’s a routine.

Amazon PPC Optimization Tips Beyond Just Negative Keywords

While negative keyword targeting is key, here are a few additional Amazon advertising services best practices to lower ACoS and increase profitability:

Use Auto Campaigns as Data Mines

Auto campaigns help you discover new keywords. Use the search term reports from auto campaigns to:

• Find converting keywords (move to manual)

• Identify irrelevant terms (add as negatives)

Use Match Types Strategically

• Broad Match = Good for discovery, but high risk of irrelevance

• Phrase Match = Good balance of reach and relevance

• Exact Match = High relevance, but narrow

Leverage the Amazon Search Term Report

Regularly analyze this report to:

• Track ACoS by keyword

• Spot trends in shopper behavior

• Find keywords that are driving spend without results

Watch for “Amazon Ads Not Converting” Signals

• High CTR, no sales? Check your product listing quality

• High impressions, low CTR? Improve the main image and title

• Many clicks, no conversion? Maybe your pricing isn’t competitive

Real Results: What Happens When You Apply This Strategy

A mid-sized seller in India running ads for kitchen storage products was seeing an ACoS of 58%—well above their break even point. After adding negative keywords and refining their campaigns:

• ACoS dropped to 34% in 3 weeks

• CTR increased by 15%

• Total ad spend reduced by 22%

• Profit margins improved by 11%

That’s the power of precision targeting through negative keywords.

Can’t Keep Up? Consider Professional Amazon Marketplace Management

If all of this feels overwhelming, or you're juggling too many SKUs, it's time to consider a trusted Amazon advertising services provider.

A professional team can help:

• Implement negative keyword targeting at scale

• Run A/B tests on ad copy and bidding strategies

• Provide expert Amazon campaign optimization strategies

• Offer actionable analytics for better ROI

Whether you're selling in the USA or just launching through Amazon Seller Registration in India, a strategic partner can be your growth catalyst.

Final Thoughts

Negative keyword targeting isn’t just an optimization trick—it’s a profit-driving lever for any serious Amazon seller.

By filtering out wasteful search terms, reducing ad spend, and increasing ad relevance, you position your business for consistent, scalable success.

So, if you’ve been asking “How do I reduce ACoS on Amazon in India or USA?”—start with your search term report, follow the process, and start trimming the fat.

Need help managing your Amazon PPC campaigns? Our Amazon marketplace management experts are here to optimize your ads, lower your ACoS, and help you sell smarter.

Get Complete Amazon Advertising Services

Don’t let high ACoS eat into your profits. Whether you’re just starting with Amazon seller registration in India or already selling in the US market, smart ad strategies can make all the difference. Our expert-led Amazon advertising services are designed to reduce waste, boost visibility, and increase ROI. With proven Amazon marketplace management solutions, we help you target the right customers, at the right time, with the right keywords.

Let’s optimize your campaigns and maximize your sales potential. Get in touch with us at +1 510-648-3933 (USA) or +91 9909513312 (India) and start selling smarter on Amazon!