Advertising Cost of Sales (ACoS)

The Advertising Cost of Sales (ACoS) is a metric for determining the profitability of online advertisements – primarily on Amazon. ACoS indicates how much sellers spend on advertising per dollar of sales.

ACoS = Total Ads Spend / Total Sales.

The higher the ACoS, the higher the ratio of advertising costs to sales revenue. Ideally, sellers want to achieve the highest possible sales at a low ACoS.

For example: Seller XY pays €1,000 for their advertisements and generates sales of €5,000 as a result. In this case, the ACoS is 20%.

ACoS is used, for instance, to monitor the success of (marketing) campaigns. The metric is one of the most important measures for evaluating Sponsored Product campaigns on Amazon.