Advertising Cost of Sales (ACoS)
ACoS (Advertising Cost of Sales) is the percentage of ad-attributed revenue spent on advertising, used primarily on Amazon Ads. It's the inverse of ROAS.
Formula
ACoS = (Ad spend ÷ Ad revenue) × 100%Example
Spend $200 to drive $1,000 in ad sales → ACoS = (200 ÷ 1,000) × 100 = 20%. (That's the same as a 5x ROAS.)
Why it matters
ACoS is the standard efficiency metric for Amazon sellers. A lower ACoS is more efficient; your break-even ACoS equals your profit margin before ad spend.
Put these metrics to work
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FAQ
What is a good ACoS?
A good ACoS is below your profit margin so ads stay profitable — often 15–30% for many sellers, but it depends entirely on your margins and goals (launch vs. profit).
What's the difference between ACoS and TACoS?
ACoS uses only ad-attributed sales; TACoS (Total ACoS) divides ad spend by total sales, showing how reliant your whole business is on ads.