Marketing and promoting your product within Amazon can be done several different ways. One of the key metrics that you will want to track in advertising is explained below.
Advertising Cost of Sales (ACoS)
ACoS “is the percentage of direct sales you made from Sponsored Products ads, or the overall brand sales you made from Headline Search Ads that resulted from your advertising campaign. ” Amazon Seller Central
To calculate ACoS = total ad spend ÷ total ad sales x 100
For example – if you spend $200 on advertising, and made $800 in sales, your ACoS would be 200 ÷ 800 x 100 = 25%. Your aim is to make the percentage as low as possible to ensure you are getting the best return for your money spent.
Click on the different options below to learn more about each one.