Los Blancos have lost Benzema this summer, with the experienced striker moving to Saudi Arabia, and Joselu has been brought in to fill the void, signing on loan from Espanyol.
Jude Bellingham has been the biggest acquisition, arriving from Borussia Dortmund, while Arda Guler and Fran Garcia have also joined to boost the squad.
Brahim Diaz is also back after a loan spell at AC Milan, but Marco Asensio, Eden Hazard and Mariano Diaz have left alongside Benzema, with Ancelotti currently short of options in the final third of the field.
Kylian Mbappe continues to be linked with a switch to Bernabeu, with the France international potentially being allowed to leave Paris Saint-Germain before the end of the window, but Ancelotti has insisted that he is pleased with the club's business in the current market.
"I am very happy with the new arrivals. They are going to help us and bring quality to the squad. Fran Garcia is going to cover the left wing very well, where we had problems last year; Joselu can give us a bit more in the air in the box," Ancelotti told reporters on Thursday.
"Guler is very talented, he is very young, I think the fans are going to enjoy this player. Bellingham is a great inside player with qualities that we don't have in the squad, he has a good arrival in the box without the ball. The squad has improved.
"I've never talked about players who are not at Madrid (Mbappe). I can talk about how many a lot of new players we have: Bellingham, Fran Garcia, Arda Guler. Also, Brahim, who has come back very well from his experience in Milan. He is a stronger and more complete player.
"I can also talk about how well [Luka] Modric, Vinicius [Junior], and Rodrygo have returned. Talking about those who are not here doesn't seem right to me."
Ancelotti was also asked again about suggestions that he will take charge of Brazil next summer, with president of the Brazil Football Confederation Ednaldo Rodrigues recently claiming that a deal had been agreed.
"We closed this issue on the first day and got it out of the way. I will never talk about Brazil. I'm not going to talk about it anymore. I'm staying with the contract I have until 30 June 2024," he said.
"I'm in no hurry to renew, because I have a contract. I have total confidence in the club. Let's see what happens this season.
"I think the season will go well, we have a lot of confidence because the squad has improved, although we have lost a fundamental player like Karim [Benzema], a club legend. We have a very young squad and we are convinced that they will give us a lot of joy."
Real Madrid are currently in the United States on a pre-season tour, and they will kick off their preparations for the 2023-24 campaign with a clash against Italian giants AC Milan on Sunday.