Question 1

What is Amazon PPC?

Accepted Answer

Amazon PPC (Pay-Per-Click) is the advertising system that lets sellers promote their products directly on Amazon's search results and product pages. You bid on keywords or ASINs, and you pay only when a shopper clicks your ad. It includes Sponsored Products, Sponsored Brands, and Sponsored Display ad types — each serving a different role in the customer journey.

Question 2

What is ACoS?

Accepted Answer

ACoS stands for Advertising Cost of Sale — it's your total ad spend divided by total ad revenue, expressed as a percentage. For example, if you spent $100 on ads and generated $500 in ad sales, your ACoS is 20%. Lower ACoS means more efficient ad spend, but the right target ACoS depends on your margins and whether you're in a growth or profitability phase.

Question 3

What is TACoS?

Accepted Answer

TACoS (Total Advertising Cost of Sale) measures ad spend as a percentage of your total revenue — not just ad-attributed revenue. It's a more complete picture of advertising efficiency because it shows how ads are affecting your overall business, including organic sales. As your organic rank improves, TACoS should decrease even if ACoS stays flat.

Question 4

What is a good ACoS on Amazon?

Accepted Answer

A 'good' ACoS varies by brand, category, and strategy. A general rule: your ACoS should be at or below your profit margin for a campaign to be profitable. If your margins are 40%, an ACoS above 40% means you're losing money on those ad sales. For brand-awareness or new product launches, a higher ACoS may be acceptable short-term to build rank and velocity.

Question 5

What is ROAS on Amazon?

Accepted Answer

ROAS (Return on Ad Spend) is the inverse of ACoS — it measures how many dollars in revenue you generate for every dollar spent on ads. A 4x ROAS means you made $4 in revenue for every $1 in ad spend. ROAS is often easier to compare across campaigns and platforms, and it's what we track alongside ACoS and TACoS to give a complete view of advertising performance.

Question 6

How much should I spend on Amazon advertising?

Accepted Answer

There's no universal answer, but a common starting point is 10–15% of your target revenue as an ad budget, adjusted based on your category competitiveness and margins. New product launches often require higher spend to build rank. Established products can often maintain position with lower spend. We analyze your category, competitors, and margins to recommend the right budget for your goals.

Question 7

How do I lower my ACoS on Amazon?

Accepted Answer

Lowering ACoS comes down to three levers: better targeting (cutting keywords and ASINs that spend without converting), smarter bidding (not overpaying for clicks that don't convert), and higher conversion rates (better listings, images, and pricing). Most accounts we take over have significant wasted spend in broad and auto campaigns that can be redirected immediately.

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