.png)
If you're running Amazon ads, there's one metric you can't afford to ignore: ACoS (Advertising Cost of Sale).
Think of ACoS as your advertising efficiency score. It tells you exactly how much you're spending on ads to generate each dollar in sales. Understanding it is the difference between pouring money into a leaky bucket and investing in a growth engine.
New to Amazon PPC? Get a solid foundation first. I break down the basics of Amazon Ads in this easy-to-follow masterclass.
In simple terms, Amazon ACoS is a percentage that answers a critical question: "What portion of my ad-generated sales revenue went to paying for the ads themselves?"
It’s a direct measure of your campaign’s efficiency.
But here’s the professional truth: lower isn’t automatically better. The "right" ACoS depends entirely on your goal—are you launching a new product, scaling for market share, or maximizing profit?
The formula is straightforward:
ACoS = (Total Ad Spend ÷ Total Ad Sales) x 100
Let’s break it down:
Example: You spend $200 on ads. Those ads bring in $800 in sales.
($200 ÷ $800) x 100 = 25% ACoS
This means 25% of your ad revenue was used to pay for the advertising.
Amazon lets you track ACoS at every level, which is key for smart optimization. Here’s how to view it:
You can see ACoS for your entire account, a specific campaign, or even a single keyword. This granular view tells you exactly where your money is going and what’s working.
Forget chasing a generic "perfect" number. A profitable ACoS is different for every seller and every goal.
The Bottom Line: Profit is king. Would you rather have a 30% ACoS with $5,000 in profit or a 15% ACoS with only $1,000 in profit? Sometimes, spending more strategically leads to earning muchmore.
Pro Tip: Don’t just look at ACoS. Watch your TACoS (Total Advertising Cost of Sale), which measures ad spend against your total revenue (including organic sales). A declining TACoS while sales grow is a golden sign that your ads are boosting your entire business.
They’re two sides of the same coin.
ACoS is your compass for profitable Amazon advertising. It guides your bids, your budget, and your strategy. But never view it in isolation. Pair it with your overall profit, TACoS trend, and business objectives.
Master your numbers, and you transform your ad spend from a cost into a strategic investment for growth.
Need an expert eye on your campaigns? Book a free PPC audit with our team. We’ll analyze your account, identify quick wins, and help you build a customized 90-day profit plan.
Q: How is ACoS calculated?
A: (Total Ad Spend ÷ Total Ad Sales) x 100. Spend $100, make $400 in ad sales, and your ACoS is 25%.
Q: Is a 100% ACoS bad?
A: Not always. At 100%, you break even on your ad sales. This can be a valid launch strategy if it helps you win organic rank and long-term sales.
Q: Should I always aim for the lowest ACoS possible?
A: No. An extremely low ACoS might mean you’re not bidding enough to get valuable clicks or scale. Focus on hitting your target ACoS for sustainable, profitable growth.
Q: What does a high ACoS indicate?
A: Typically, it means your ad spend is inefficient. Common causes are low-converting listings, irrelevant keywords, or overly high bids. Use it as a signal to investigate and optimize.
TikTok Shop transforms entertainment into commerce, blending viral content with seamless shopping. It’s where authentic recommendations meet impulse buying, unlocking a powerful new sales channel for forward-thinking brands.
ACoS measures how much you spend on Amazon ads for each dollar of sales. Mastering it is key to turning ad costs into real profit.
Amazon Posts is a free visual marketing tool for Amazon sellers. By posting consistent lifestyle content, you can increase product visibility, build brand loyalty, and drive more sales without extra ad spend.
Learn how to effectively use TikTok advertising to maximize your brand's reach and engagement.
Amazon FBA lets you sell products online while Amazon handles storage, shipping, and customer service. By following a structured plan to find, source, and market a winning product, you can build a scalable online business with global reach.
75% of clients see improvements within 4 weeks. Week 1-2 we fix bleeding inefficiencies. Week 3-4 optimization kicks in. Month 2+ compound growth across ads, listings, and operations.
We maintain 93% client retention vs industry average of 60%. Our team trains for 8-12 months before managing accounts, not the typical 2-week crash course. We use proprietary bid algorithms and playbooks built from managing 150+ brands. Most importantly, we focus on profitable growth, not just ad spend.
Half our clients come to us doing six figures monthly after hitting a growth ceiling. Common scenarios: ACOS creeping up, growth stalling, or margins shrinking despite higher sales. We specialize in breaking these plateaus and scaling to seven or eight figures profitably.
We work with brands doing at least five figures monthly where there's enough data to optimize. Below that, we'll assess your fundamentals and tell you exactly what needs fixing first.
90-day initial period to implement and prove results. After that, month-to-month with 30 days notice to pause or exit. We keep clients through results, not contracts.
Full service. We optimize PPC, listings, SEO, inventory, pricing, and creative. One team, one strategy, unified execution. No vendor finger-pointing or optimization gaps.
We've mastered supplements, beauty, home, pet care, consumables, tech accessories, and many more. We adapt proven frameworks to each category. Your competitor's strategies become your starting point.
Yes. We've expanded brands into UK, EU, Canada, and beyond. We analyze demand and margins first. If expansion makes sense, we handle it. If not, we show you why and save you from costly mistakes.
Yes. We've scaled brands from zero to six figures monthly on TikTok Shop. We assess product-platform fit first since not all Amazon winners work on TikTok. If aligned, we build and execute.