ACOS stands for Advertising Cost of Sale. It measures what percentage of your ad-generated revenue you spent on advertising. A lower ACOS means your ads are more efficient and profitable. It is the most important metric Amazon PPC sellers track.
How do I calculate Amazon ACOS? +
ACOS equals Total Ad Spend divided by Total Ad Revenue multiplied by 100. For example if you spent $500 on ads and generated $2,000 in ad revenue your ACOS is 25%.
What is break-even ACOS? +
Break-even ACOS is the maximum ACOS at which you make zero profit on ads. It equals your profit margin before advertising. If your margin is 35% your break-even ACOS is 35%. Above this you lose money on each ad sale.
What is the difference between ACOS and ROAS? +
ACOS and ROAS measure the same thing from opposite angles. ACOS is a percentage where lower is better. ROAS is a multiplier where higher is better. An ACOS of 25% equals a ROAS of 4x. Use whichever your team prefers — they tell you the same thing.
Should I always try to get the lowest possible ACOS? +
Not always. A very low ACOS often means your ads are too restricted and you are missing sales. New products often need a higher launch ACOS to build sales velocity and organic rank. Once ranked organically, reduce bids to lower ACOS.
How can I lower my Amazon ACOS quickly? +
The fastest ways to lower ACOS are: pause keywords with high spend and zero sales, reduce bids on keywords above your target ACOS by 15-20%, add negative keywords to stop irrelevant clicks, and improve your listing conversion rate so each click converts more often.