what is acos

ACOS stands for Advertising Cost of Sales and is a metric used to measure the performance of Amazon ad campaigns. It is calculated by dividing the total ad spend by the total ad revenue and then converting it to a percentage. The formula for calculating ACOS is: ACOS = Ad spend / Ad revenue * 100. A lower ACOS is generally better, but what is considered a good ACOS depends on several factors such as the market and business strategy. The average ACOS is around 30%, and most Amazon sellers aim for an ACOS between 15 and 20% . ACOS is important because it helps businesses track their costs and figure out how much profit they will make. However, it should not be the sole metric to focus on, and other metrics such as impressions, conversion rate, and click-through rate should also be considered.