ACoS Amazon Ads

ACoS: Advertising Cost of Sales

ACoS (Advertising Cost of Sales) tells you what share of your ad-attributed revenue went back into advertising. Formula: ACoS = ad_spend / ad_revenue · 100. Say R$ 500 in ads brings R$ 2,500 in sales, and your ACoS lands at 20%. It's the inverse of ROAS, so an ACoS of 25% equals a ROAS of 4×. On Amazon Sponsored Products the rule of thumb is to keep target ACoS below the product's gross margin if you want to turn a profit. There's also TACoS (Total ACoS), which divides ad spend by total revenue, organic included, and gives a better read on long-term efficiency.

Applications

It's the standard metric in Amazon Advertising (Sponsored Products, Sponsored Brands, Sponsored Display), and it shows up on Mercado Livre Ads, Shopee Ads and Magalu Ads too. For FBA sellers and marketplace sellers it's hard to skip when you're tuning bids, harvesting keywords, or deciding which ASINs and SKUs deserve a push.

FAQ

What's a good ACoS? Margin decides it. At 40% margin, an ACoS under 40% means you're ad-profit positive. Plenty of sellers run a "launch ACoS" above margin on purpose to win reviews and rank, then dial it back down toward their target ACoS.

ACoS vs. TACoS? ACoS counts only ad-attributed revenue. TACoS = ad spend / total revenue (organic + ads), and when it trends down over time that usually means your organic rank is climbing on the back of the ads.

Break-even ACoS? It matches your gross margin %. At 30% margin, break-even ACoS sits at 30%. Go above that and you're paying to lose money; stay below and the difference is yours to keep as profit.