How is ACoS Calculated?
Omnitail’s Guide to ACoS and Profit on Amazon!
Find the ideal ACoS for your business goals and products
Supplement ACoS with profit
Adapt your ACoS target to changing goals and circumstances
Ready to Find Your ACOS Target?
Calculate Your Ideal ACoS Using Profit
If you sell on Amazon, you know that Amazon puts a big emphasis on ACoS. If you’re worried about lowering your ACoS on Amazon, you should start by calculating your ideal ACoS. What is the ideal ACoS percentage? 20%? 10%? Unfortunately, there isn’t a golden number that works for every business—you’ll need to calculate ACoS.
The perfect ACoS is one that’s based on your profit potential, and it will be different for every retailer. Some retailers even aim for a range, like 20% to 30%. If you’re segmenting your campaigns according to available margin ACoS will likely vary across the different segments. In this guide, we’ll show you how to find the best target ACoS to match your specific company goals—using profit.
If your goal is to grow your Amazon account, you need to look beyond ACoS. If you only use ACoS to measure your success on Amazon, you’ll be missing part of the puzzle. Tracking profit across campaigns helps you see the whole picture. Measuring profit is also key to finding your ideal ACoS.
With profit and product segmentation, you can choose ACoS targets that you know will help you generate profit. Instead of choosing arbitrary limits for your entire Amazon account, you can now calculate which ACoS targets are ideal specially for each of your ad groups—and stop wasting ad spend!
Ready to start? Download the whitepaper below.