Marketing Terms

ACoS (Advertising Cost of Sales)


In Amazon Ads, the percentage of ad cost in relation to ad revenue, expressed as (Cost / Revenue) * 100

What is ACoS and how do you improve it?

This video from the official Amazon Ads Youtube channel covers what ACoS is, how to determine your target ACoS, and how to lower ACoS by optimizing your sponsored product campaigns.

To summarize, use the following strategies to lower ACoS:

  • Lower bids on keywords with high ACoS
  • Use negative keywords to block irrelevant or under-performing queries
  • Choose the most effective match type

ACoS Calculator

What is my break-even ACoS?

This is a great convenience of ACoS:

break-even ACOS = your gross profit margin

Where gross profit margin = product sales price – cost of goods sold.

This means:

  • If profit margin > ACoS, you are making money
  • If ACoS > profit margin, you are losing money