What is Amazon ACoS? What is True ACoS?
ACoS or Advertising Cost of Sales is the percentage of sales made through Sponsored Ad Campaigns.
On Amazon Seller Central, this will be already provided for you in the advertisement.
ACOS = Total Ad Spend/Total Ad Sales x 100.
Example 1 (image below):
Ad spend = $280.66 | Ad sales = $1,125.42.
$280.66/$1,125.42 = 0.24938
0.24938 x 100 = 24.94% = ACOS
True ACoS is the same thing, except instead, the total revenue will go in place for ad revenue.
True ACoS = Total Ad Spend/Total Sales x 100
Example 2 (image below):
Ad spend = $280.66 | Total Sales = $5000
$280.66/$5000 = 0.0561
0.0561 x 100 = 5.61% = True ACOS
If you don’t see this metric in your advertisement, click on ad metric and select ACOS.
What is a Good TRUE ACOS?
7% is healthy. 10% if you’re going for growth. Anything less than 7% you’re leaving sales on the table, but probably are more profitable.