What is ACOS?

Detailed Explanation

ACOS (Advertising Cost of Sales) is one of the most critical metrics for Amazon sellers running PPC campaigns. It is calculated as (Ad Spend ÷ Ad Revenue) × 100. For example, if you spend ₹1,000 on ads and generate ₹5,000 in sales, your ACOS is 20%. A lower ACOS indicates better ad efficiency, but the ideal ACOS varies by category, competition level, and business goals. New product launches typically have higher ACOS (40-60%) while established products aim for 15-25%. Break-even ACOS equals your profit margin — if your margin is 30%, any ACOS below 30% means your ads are profitable.