A good ACoS on Amazon is one that sits at or below your break-even ACoS - the point where your ad spend equals the profit margin on a sale. There is no universal good number: for many sellers a profitable ACoS lands roughly in the 15 to 30 percent range, but the right target depends entirely on your margins and your goal (launching, defending, or harvesting profit).
What ACoS actually measures
ACoS (Advertising Cost of Sale) is your ad spend divided by the sales those ads generated, shown as a percentage. A 25 percent ACoS means you spent $25 in ads for every $100 of ad-attributed sales. Lower means more efficient - but lower is not always better, because a higher ACoS can be worth it when you are launching or defending share.
Start with your break-even ACoS
Your break-even ACoS equals your profit margin before ad spend. If you keep 35 percent margin after product cost, Amazon fees, and shipping, then a 35 percent ACoS means you break even on those ad sales. Anything below that is profit; anything above is a loss you are choosing to take for a reason.
Set a target ACoS by goal
Launching a new product? You might accept an ACoS at or above break-even to build rank and reviews. Defending a profitable best-seller? Keep ACoS comfortably below break-even. Maximizing profit on a mature product? Push ACoS lower and let organic sales carry more of the load.
Do not judge ACoS alone - watch TACoS
ACoS only looks at ad sales. TACoS (Total Advertising Cost of Sale) compares ad spend to your total sales, including organic. A healthy account often shows a falling TACoS over time, meaning ads are building organic momentum instead of just buying every sale.
How to reach a good ACoS
Cut wasted spend with negative keywords, restructure campaigns by intent, improve listing conversion so clicks turn into orders, and manage bids and placements to your target. Slashing budgets blindly usually lowers ACoS on paper while costing you rank and total sales.
Want your ACoS managed to profit?
DotcomMax manages Amazon advertising to a profit target - not just a vanity ACoS - for US brands under one accountable team. Book a free strategy call and we will show you where the wasted spend is.
Frequently asked questions
- What is a good ACoS on Amazon?
- One at or below your break-even ACoS (your profit margin). For many sellers a profitable ACoS is roughly 15 to 30 percent, but it depends on your margins and goals.
- Is a 30 percent ACoS good?
- It is good if your profit margin is above 30 percent, so you still profit on ad sales. If your margin is lower, 30 percent may be a loss you should only accept for launching or defending.
- What is break-even ACoS?
- The ACoS equal to your profit margin before ad spend. At that ACoS, ad spend equals your margin, so you break even on those ad-attributed sales.
- Is a lower ACoS always better?
- No. A very low ACoS can mean you are under-investing and missing rank and sales. The goal is profit and total growth, not the lowest possible ACoS.
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