Adverts will be based on data collected on the shopping activities of its 188m users.
Amazon is reportedly planning to open a new advertising front by displaying personalised ads on its websites. Ads will also be displayed on Kindle devices along with other Internet links.
The company is aiming to take on established digital marketing businesses rivals Google, Facebook, Microsoft and AOL.
Amazon Media Group global sales vice-president, Lisa Utzschneider told the FT,"We've been heads down, focused on building an advertising offering and solution that is right for marketers and right for our customers."
The online retailer has been selling untargeted ads on its site over the past years which has boosted its ad offerings
However, Amazon's digital advertising market share is small compared to its rivals.
Recently, Amazon has revealed plans to add 100 staff to its digital media development centre in London's 'Silicon Roundabout'.