Amazon ACOS Optimization
Optimization overview
Understanding ACOS
Advertising Cost of Sales—what it measures, how it differs from TACoS, and when to optimize for each.
How to Reduce ACOS
Bid and budget adjustments, negative keywords, and placement strategy to lower cost per sale without losing volume.
Campaign Restructuring
Reorganizing campaigns by performance and intent to isolate winners and cut waste.
Search Term Optimization
Using search term reports to add negatives, harvest winners, and improve match-type allocation.
Frequently Asked Questions
What is ACOS and why does it matter?
ACOS (Advertising Cost of Sales) is ad spend divided by attributed sales. It shows how efficiently ads drive sales; lower ACOS with stable or growing revenue usually means better profitability.
How can I reduce my Amazon ACOS?
Reduce ACOS through smarter bids and budgets, negative keywords, placement adjustments, and campaign restructuring so high performers get more budget and underperformers are trimmed.
What is the difference between ACOS and TACoS?
ACOS measures paid advertising efficiency; TACoS includes total marketing cost (including promotions, deals) vs. total revenue. Both matter—optimize ACOS for paid efficiency and TACoS for overall margin.
How long does ACOS optimization take?
Initial changes can show impact in 2–4 weeks. Sustained improvement depends on account size, competition, and consistent optimization; many accounts see meaningful results within 1–3 months.
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