Amazon ACoS Calculator: Optimize Your Advertising Spend

How to Use the Calculator – Step-by-Step

1. Enter Total Ad Spend
   Input the total amount spent on your Amazon ads.

2. Enter Total Sales Revenue
   Input the total revenue generated from the sales driven by your ads.

3. Click ‘Calculate’
   Instantly view your ACoS and determine the efficiency of your campaigns.

Tip: A lower ACoS means your campaigns are more profitable. Track ACoS over time to measure improvements and adjust budgets.

Understanding ACoS

ACoS (Advertising Cost of Sale) is a critical metric for Amazon sellers to track ad performance. It tells you what percentage of your sales revenue is allocated to advertising. A high ACoS can indicate inefficient ads or high competition, while a low ACoS suggests a profitable campaign.

Industry Benchmarks for ACoS

Note: ACoS varies depending on product margin, competition, and campaign goals. Always adjust benchmarks based on your specific business model.

Practical Example

Scenario:

• Total Ad Spend: ₹30,000

• Total Sales Revenue: ₹150,000

Calculation:

ACoS=(₹30,000/₹150,000)×100=20%

Interpretation:

An ACoS of 20% means you’re spending 20% of your sales revenue on ads. In this case, you’re making ₹5 for every ₹1 spent on ads.

Tips to Improve ACoS

• Refine Targeting:
  Focus on high-converting keywords and target the right audience.
• Optimize Listings:
  Improve your product detail pages to increase conversion rates.
• Test Ad Creatives:
  Experiment with different ad formats, headlines, and images to improve ad performance.
• Monitor Campaigns Regularly:
  Track ACoS frequently and adjust bids or keywords to optimize ad spend.