Determining the ACoS goal for Amazon Advertising should be a part of every strategic plan for bringing a product to market on Amazon. Two questions that sellers often ask us are: What is a good ACoS for my products? How does my ACoS compare to other advertisers in my product category?
There are really many answers to be given for that, since every seller’s situation can be unique. The simple fact is that the best ACoS is the one you can afford that brings the most product sales with the least amount of profit lost, regardless of what category the products are in. It comes down to specific business goals.
Vertical Rail has put together an ACoS calculator to help you figure out what your target ACoS should be, based on your product category, fulfillment type and shipping. There may be more fees you need to consider, but this will give you an idea of what percentage of your gross sales should be invested into Amazon Advertising.
If you run your numbers and feel like your Advertising costs are in alignment with your goals… GREAT! Keep on selling! But, if you are ending up with an ACoS that does not allow you to Advertise, it is time to fully audit your costs and goals.