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FAQs

• What is ACoS on Amazon?

  ACoS is a vital advertising metric used to measure the efficiency of your ad campaign. It is defined as the ratio of ad spend to ad revenue. Essentially, it measures how much money you spend for every dollar of ad revenue you make on Amazon.

• How do I use the Amazon ACoS calculator?

  Well, it’s simple. Found a product you like? Enter the ASIN or the URL of the product’s Amazon page into the search bar. Adjust manufacturing cost, shipping cost, and set target profitability to instantly get break-even ACoS and target ACoS (TACos).

• What is break-even ACoS?

  Break-even ACoS is the ACoS value at which your net loss or profit is zero. In a nutshell, it is when you’re neither making nor losing money.

• What is the ideal profit margin for a product on Amazon?

  Not all products are the same. The ideal profit margin will differ, so this is a subjective question. The average e-commerce profit margin should ideally be close to 40% or greater. These numbers are feasible for established products or brands. To get to this position, you may have to cut down on your margins and aggressively promote the product using PPC campaigns, promotions, or coupons.