Understanding your Advertising Cost of Sales (ACoS) is essential for running profitable Amazon PPC campaigns.
What is ACoS?
ACoS is the ratio of ad spend to attributed sales, expressed as a percentage. The formula is: ACoS = (Ad Spend / Ad Revenue) × 100
What's a Good ACoS?
There's no universal "good" ACoS - it depends on your profit margins. If your profit margin is 30%, an ACoS under 30% means your ads are profitable.
Tips for Lowering ACoS
- Optimize Keywords: Remove underperforming keywords
- Adjust Bids: Lower bids on high-ACoS keywords
- Improve Listings: Better conversions mean lower ACoS
- Use Negative Keywords: Prevent wasted spend on irrelevant searches
