05/30/2026
The Advertising Cost of Sales, or ACoS, is the amount of money you spend on advertising for every dollar of revenue you generate. It can also be thought of as the ratio of ad spend versus target sales.
In Amazon PPC, your Advertising Cost of Sales (ACoS) is crucial. It's an important indicator for determining your Amazon advertising strategy. Your ACoS is a shaky metric for success that determines how you bid on search terms. ACoS is everything in Amazon PPC advertising.
A decent example of an ACoS computation is as follows: If your ACoS is 25%, you paid $0.25 for every dollar you made, or $25 for every $100 you made (we're only looking at Ad Spend here, not production costs, Amazon fees, or anything else).
Amazon ACoS is a crucial metric for determining the success of your campaign.
If you're a seasoned PPC marketer, you'll see that Amazon borrowed this concept from Google Ads, which use Return on Ad Spend (ROAS). Here are some more Amazon PPC vs. Google Ads pointers.
Optimize your Amazon advertising with ACoS! Discover what Advertising Cost of Sales is, how to calculate break-even, and strategize for Amazon PPC success.