Why your Amazon Australia Ads Aren’t Converting & How to Fix It

#1: Weak product listings

You can run the best ads in the world, but if your product listing isn’t convincing, shoppers won’t convert. Many sellers focus too much on ad performance without realizing their listing is the real problem. If your images are blurry, your title is stuffed with keywords, or your bullet points are vague, buyers will bounce. Worse, if your competitors have better listings, your ad clicks are just leading them to a sale instead.

Fix it:

• Images matter – Use high-quality, clear photos with white backgrounds and Amazon infographic images that show the product in use.
• Make your title work for you – Keep it clear, readable, and benefit-driven instead of cramming in every keyword.
• Bullet points = persuasion – Highlight key features, address pain points, and make it easy to skim.
• Boost your reviews – If you have fewer than 10, your conversion rate will suffer—run post-purchase campaigns to encourage feedback.

#2: Targeting the wrong audience

If your Amazon Australia ads aren’t converting, chances are you’re showing them to the wrong people. Many sellers make the mistake of using broad match keywords, assuming more traffic equals more sales. But irrelevant clicks waste your budget and hurt your ad’s performance. If shoppers aren’t interested in your product, they’ll click, browse, and leave—draining your ad spend without adding to your revenue.

Fix it:

• Refine your keywords – Use phrase and exact match for better targeting. Broad match can be useful but should be closely monitored.
• Add negative keywords – Filter out irrelevant traffic to avoid wasting money on searches that won’t convert.
• Leverage audience insights – If your product is for a niche group (e.g., pet owners, fitness enthusiasts), tailor your targeting accordingly.
• Check your search term reports – Regularly analyze which keywords are driving conversions and cut the ones that aren’t.

#3: Poor keyword selection

Your ads are only as good as the keywords you bid on. If you’re choosing high-competition keywords, you’ll burn through your budget without ranking well. If your keywords are too generic, you’ll get clicks but no conversions. And if you’re not targeting the right intent, you’re showing up in searches that don’t align with your product.

Fix it:

• Focus on long-tail keywords – Instead of bidding on broad terms like “water bottle,” try “insulated stainless steel water bottle 1L.” These keywords have lower competition and higher purchase intent.
• Use Amazon’s auto campaigns for research – Let Amazon run an automatic campaign for a few days and check the search term report to find converting keywords.
• Optimize for buyer intent – If someone searches “best magnesium supplement,” they’re looking for recommendations, not a product listing—adjust your keywords accordingly.
• Bid strategically – Don’t overpay for high-competition terms. Find lower-cost, high-converting keywords and prioritize those.

#4: High click costs with low conversions

Spending too much on clicks but seeing little to no return? You’re not alone. Many sellers on Amazon Australia struggle with high CPCs but low sales, often because they’re bidding on expensive keywords without optimizing their listings or targeting the right audience. If your product page doesn’t convince shoppers or your targeting is too broad, you’ll keep paying for clicks that don’t convert.

Fix it:

• Refine your bidding strategy – Instead of competing for high-competition keywords, focus on long-tail and high-intent search terms.
• Optimize your listing – Even the best ads won’t convert if your product page isn’t compelling (strong images, clear benefits, persuasive bullet points).
• Test different ad formats – Sponsored Brand ads and Sponsored Display ads can sometimes give better ROI than Sponsored Products.
• Get expert help – Investing in Amazon sales consulting can help you identify wasteful ad spend and optimize your campaigns for better conversions.
• High CPCs aren’t the problem—poor optimization is. Tighten up your strategy, and you’ll get more sales for less spend.

#5: Weak product reviews and ratings

Shoppers trust other buyers more than your sales pitch. If your product has fewer than 10 reviews or a rating below 4 stars, it’s a major red flag. Even if your ad brings traffic, low ratings or a lack of social proof will push potential buyers away. In Australia, where Amazon is still growing, customers are even more cautious, making reviews even more important for conversions.

Fix it:

• Run a review strategy – Use Amazon’s Request a Review button to encourage feedback from verified buyers.
• Enroll in Vine – If you’re eligible, the Amazon Vine program helps get early reviews from trusted reviewers.
• Improve your customer experience – Bad reviews often come from poor packaging, misleading descriptions, or quality issues—fix those first.
• Respond to negative reviews – A professional, helpful response to a bad review can build trust and show potential buyers you care.

#6: Uncompetitive pricing

If your product costs significantly more than competitors’ without offering extra value, customers will click—but they won’t buy. Australian shoppers are price-sensitive, and since Amazon makes price comparisons easy, a high price without justification kills conversions. Even if your ad is driving traffic, shoppers will bounce if they find a similar product for less.

Fix it:

• Analyze competitor pricing – Regularly check what similar products are selling for and adjust accordingly.
• Bundle or add value – If you can’t compete on price, offer something extra—better packaging, an added accessory, or a multi-pack option.
• Use dynamic repricing tools – Automate pricing adjustments based on market trends and competition.
• Conduct an Amazon seller account audit – A full audit helps identify pricing gaps, ad inefficiencies, and areas where you can improve margins while staying competitive.

#7: Low stock or slow fulfillment times

Even if your ad is getting clicks, low stock levels or long delivery times can kill your conversions. Shoppers on Amazon expect fast shipping—especially Prime members. If they see a delayed delivery estimate or a warning about low stock, they’re more likely to choose a competitor with faster fulfillment. Worse, running low on stock can hurt your ad performance because Amazon deprioritizes products with inconsistent availability.

Fix it:

• Monitor your inventory closely – Use Amazon’s inventory planning tools to avoid stockouts and keep your ad campaigns running smoothly.
• Use FBA for faster shipping – If you’re fulfilling orders yourself and struggling with long delivery times, switching to Fulfillment by Amazon (FBA) can improve conversions.
• Avoid running ads when stock is low – If you’re down to just a few units, reduce ad spend to prevent wasting money on clicks that can’t convert.

#8: Ineffective ad placement and bidding strategy

Not all ad placements are created equal. If your ads are buried at the bottom of search results or showing up in irrelevant product pages, you’re wasting money. Many sellers either bid too aggressively on expensive placements or too cautiously, missing out on prime visibility. An ineffective bidding strategy leads to high costs with low returns.

Fix it:

• Prioritize top-of-search placements – These spots have the highest conversion rates. Adjust bids to increase your chances of winning them.

• Use bid adjustments wisely – If a certain placement (like product pages) isn’t converting well, lower your bid for that spot instead of wasting money.
• Test different bidding strategies – Dynamic bidding (down only or up and down) can help Amazon adjust your bids based on conversion likelihood.
• Monitor and tweak – Regularly check your placement report to see where your money is going and optimize accordingly.

#9: Ignoring negative keywords

One of the biggest mistakes sellers make is letting their ads show up for irrelevant searches. If you’re not using negative keywords, you’re wasting ad spend on clicks from people who were never going to buy your product in the first place. This not only drains your budget but also lowers your ad’s relevance score, making it harder to win placements that matter.

Fix it:

• Regularly review your search term reports – Identify irrelevant searches that triggered your ads and add them as negative keywords.
• Use phrase and exact match negatives – If your product is a premium candle but people keep clicking on your ad for “cheap candles,” block terms like “cheap” or “affordable.”
• Exclude competitor brands (if needed) – If your product isn’t a direct alternative, appearing in competitor searches might just lead to wasted clicks.
• Refine over time – Negative keywords aren’t a one-time fix. Keep updating them as new trends emerge.

#10: Running ads on low-demand products

No matter how optimized your campaign is, if the product itself has low demand, conversions will be hard to come by. Some sellers push aggressive ad strategies on niche or slow-moving products, hoping to force sales. But if people aren’t searching for it, even the best ad won’t work. In Amazon Australia’s smaller marketplace, demand gaps are even more noticeable compared to the US.

Fix it:

• Check keyword search volume – Use tools like Amazon Brand Analytics or third-party software to see how many people are searching for your product.
• Analyze past sales trends – If your product has consistently low sales even with ads, it might not be the right fit for Amazon.
• Consider bundling – If a single product isn’t getting traction, pairing it with a more popular item might boost demand.
• Test demand with lower ad spend – Instead of forcing conversions with high ad budgets, test at a smaller scale to see if interest picks up.

#11: Not hiring Amazon ad management agency

Running Amazon ads might seem straightforward, but without experience, it’s easy to burn through your budget without getting real results. Many sellers try to manage ads themselves, only to struggle with high CPCs, low conversions, and wasted spending. If you’re not constantly optimizing your campaigns, analyzing data, and testing new strategies, you’re likely leaving money on the table.