Understand Amazon ACoS. Under 25% excellent, average 30%. Compare to profit margin for profitability.
By The Ad Spend
Amazon's signature efficiency metric showing what percentage of ad-attributed revenue was spent on advertising. The inverse of ROAS.
Formula
(Ad Spend ÷ Ad Revenue) × 100
Benchmark range
Under 25% is excellent. 25-35% is good. Amazon average ~30%. New products may run 50%+ to build ranking.
Why it matters
Lower ACoS isn't always better. Aggressive ACoS during launches builds organic ranking—it's an investment. Once ranked, optimize for profitability. Compare ACoS to your profit margin: if margin is 30%, ACoS above 30% loses money.
