ACoS (Advertising Cost of Sales)

ACoS is ad spend divided by the sales those ads generated, used mainly for Amazon advertising.

ACoS is the inverse of ROAS shown as a percentage. A lower ACoS means ads are more efficient.

Sellers compare ACoS with their profit margin: if ACoS is higher than margin before ads, the ads lose money.

Formula

ACoS % = Ad spend ÷ Ad sales × 100

ACoS % = 100 ÷ ROAS

You spend 300 on Amazon ads that generate 1,500 in sales. ACoS is 20%, the same as a ROAS of 5.

Margin → minimum ROAS.

Know the ad return you need to profit.

Price − Amazon fees → profit

Referral, FBA and per-item fees, payout and profit.

What is TACoS?

Total ACoS: ad spend divided by all sales, including organic.

What is a good ACoS?

One below your margin before advertising.