ACoS is Amazon jargon for Advertising Cost of Sale.
When you advertise you want to know what your ROI is. Otherwise you could be flushing money down the drain.
Sellics explains what it is and how to use it in the post below.
What is a good ACoS for my PPC Campaign?
The ACoS (Advertising Cost of Sale) is a key metric used to measure performance of your Amazon Sponsored Products campaigns. ACoS indicates the ratio of ad spend to targeted sales and is calculated like this:
ACoS = ad spend ÷ sales
Here’s an example:
If a campaign has generated $254 in sales with an expenditure of $63 over a certain period of time, then the ACoS = 63 / 254 = 25%. In other words, you’re spending a quarter on ads to make one dollar of sales with that ad campaign.
Use Amazon ACoS to measure profitability:
Many sellers use ACoS to determine the success of their ad campaigns. The difficulty in this, however, is defining the right target value – because Amazon ACoS alone doesn’t say anything about how profitable a campaign really is.
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