Amazon ACoS and PPC profits: Everything You Need To Know

ACoS Amazon Formula

Essentially, ACoS stands for advertising cost per sale or the cost of reaching a customer and selling to them. The formula itself is fairly straightforward, but there are a few ways you can calculate it.

As you can see, the equation looks like this:

What is the meaning of your Amazon ACoS?

The ACoS shows how much of every dollar earned through advertising was spent on ads. Consider the case of a campaign that generated $400 in advertising sales. This campaign costs $100 in ads, so  ACoS = 100 / 400 x 100 = 25%. As a result, 25 cents have been spent on advertising for every dollar generated.

What Is a Good ACoS on Amazon and how do I reduce it?

There are many variables that affect ACoS, including the marketplace, the ad type, the competition, the product price, and many others. Below is a general overview of ACoS values on Amazon across different categories.

Factors that affect ACoS?

There is a common misconception that the highest bidder always gets the best spot - but that isn't always true. While cost-per-click plays an important role, it is not the only one. The following two factors determine ad placement: – CPC: A person with a high CPC is more likely to win prime advertising space on Amazon. Quality: The quality of the ad also depends on the probability of a customer clicking on it.