Amazon ACoS and its relation to PPC profits

Mathewjohnson19 Jan, 2021Business

Advertising Cost of Sales better abbreviated as the ACoS is the most important metric, for determining the profitability of the Amazon Ads. Calculated by dividing the Revenue from PPC with the PPC Spends, the ACoS aligns to the conversion rate for the money invested into the campaigns. Usually, a lower ACoS is desirable. The lower the ACoS the better. Eg, an ACoS of 25% means that you spent $25 dollars in PPC where you got back a sales of $100. The sales vs spend is, in this case, is 25%.