Scanzano Jonico lies on a flat stretch of the Ionian coast, less than 1 km from the sea. Its municipal area ranges from sea level to 106 metres, averaging 21 metres, although most of the town sits only a few metres above the sea. It borders Pisticci to the north (28 km), the Ionian Sea to the east (1 km), Policoro (6 km) and Tursi (26 km) to the south, and Montalbano Jonico (19 km) to the west. Matera is 60 km away and Potenza 125 km.

Scanzano Jonico became an independent municipality in 1974, having previously been part of Montalbano Jonico. The place name dates back to a modest medieval settlement. The town was rebuilt around older structures and repopulated in the 1950s following land reform.