{"id":7681,"date":"2026-05-19T18:16:00","date_gmt":"2026-05-19T18:16:00","guid":{"rendered":"https:\/\/www.aihello.com\/resources\/?p=7681---3503809f-56b9-4ac6-8580-17fcc1e6b703"},"modified":"2026-06-07T01:37:23","modified_gmt":"2026-06-07T01:37:23","slug":"the-2022-ultimate-resource-for-amazon-acos","status":"publish","type":"post","link":"https:\/\/www.aihello.com\/resources\/blog\/the-2022-ultimate-resource-for-amazon-acos\/","title":{"rendered":"The 2022 Ultimate Resource for Amazon ACoS"},"content":{"rendered":"

The important number Amazon ACoS<\/a>, which stands for an advertising cost of sale, helps Amazon sellers figure out how much advertising costs and how profitable a campaign is. In the cutthroat world of eCommerce, advertising is one of the quickest ways to boost sales. But to get the most out of an Amazon PPC<\/a> campaign, you need to know how much advertising costs. You should decide early on if a campaign will make money or not. This is why you need to know about and keep an eye on Amazon’s ACoS.<\/p>

In the quick guide we’re sharing today, we explain what ACoS<\/a> means on Amazon<\/a>, how to calculate it, and what you can do to improve it.<\/p>

Let’s get started<\/a>.<\/p>

What is Amazon ACoS?<\/h2>

A special Amazon indicator called ACoS figures out how much you spend compared to how much you make. Your ability to tell if your campaigns are profitable or not depends on how well you understand Amazon ACoS, which is shown as a percentage.<\/p>

How to Figure Out the ACoS in Amazon PPC<\/h2>

On Amazon, it’s easy to figure out ACoS. The formula below will show you how to<\/a> do it:<\/p>

ACoS = Ad Spend\/Ad Revenue x 100<\/p>

Here’s how you would figure out ACoS if, for example, you spent $60 on an Amazon PPC<\/a> campaign and made a total of $200 from sales<\/a>.<\/p>

$60 \/ $200 X 100= 30%<\/p>

Based on this result, the ad cost you 30 cents ($0.3) for every dollar it brought in.<\/p>

It’s important to remember that ACoS doesn’t include things like the cost of making ads and Amazon fees<\/a>. It only keeps track of what you spend on ads (the campaign budget<\/a> you listed when setting up your ad on Amazon).<\/p>

What is the difference between Amazon ROAS and ACoS? <\/h2>

ACoS is the opposite of ROAS<\/a>. Pay-per-click advertising is also more likely to use ROAS (PPC).<\/p>

ROAS tells you how much money<\/a> you make from advertising for every dollar you spend on it. ACoS on Amazon, on the other hand, shows how much you spend for every dollar you earn.<\/p>

Both metrics are important for figuring out how well an Amazon PPC campaign<\/a> is doing. ROAS looks at how well your advertising spend is working, while ACoS looks at how profitable your business is.<\/p>

So, to get a full picture of your Amazon campaign<\/a> strategy<\/a> as a whole, you should keep track of both metrics.<\/p>

What’s a good Amazon ACoS for PPC?<\/h2>

When selling on Amazon<\/a>, there are a lot of different ideas about what makes a good ACoS. ACoS is one of those metrics that depend on what your business goals are right now and what kind of seller you are.<\/p>

Among these are business goals, the right way to structure a campaign, the product’s life cycle, profit margins, and so on. A lower ACoS<\/a> means you spend less of your sales on Amazon, but how you define “low” will change from ASIN<\/a> to ASIN.<\/p>

If you sell clothes, cosmetics, or food on Amazon, you will<\/a> have to pay more for first conversions<\/a> to get repeat customers, while you will have to pay less for first conversions if you sell technical products or replacement parts.<\/p>

As an Amazon seller<\/a> or brand, you want to make money over time so you can grow your business. So, to figure out the target ACoS for each product, you need to be clear about the net profit<\/a> margin you want after advertising costs.<\/p>

With this information, you need to first choose the strategy and goals for each campaign. By making your goals clear and showing them to others, you will be better able to decide which products to include in your campaigns, how to structure them, and how to measure their success.<\/p>

Some of the most common goals of advertising campaigns are:<\/p>