Advertising Cost of Sale, or ACoS, tells you how much you’re spending on ads to generate ad-attributed sales. It’s one of the first metrics Amazon sellers watch because it quickly shows whether a campaign is helping profit or eating into it.
If your ad spend rises faster than the sales it brings in, your margins can disappear before you notice. Still, ACoS is not a metric you should judge in isolation. A new product may tolerate a higher ACoS while it gains traction, while an established listing usually needs a more efficient target. For sellers, the real value of ACoS is that it helps guide smarter ad decisions instead of emotional ones.
- Use ACoS when you want to measure the efficiency of a campaign, keyword, or ad group.
- It’s calculated by dividing ad spend by ad-attributed sales, then turning the result into a percentage.
- Compare ACoS to your own margin, because a “good” number depends on what your product can afford.
- Review it with TACoS and conversion rate so you improve ad performance without missing the bigger picture.
