If you’re running ads to boost your sales on Amazon, you should be asking yourself, “What is a good ACoS for Amazon sellers?”. If you’re not, there’s a good chance you’re either overspending on ads that don’t convert or underinvesting in ads that could have accelerated your growth.
With over a million active sellers in the U.S. alone, standing out on Amazon is no small feat. That’s why smart sellers rely on advertising to get traction, but when they don’t measure their ACoS correctly, they risk wasting money or missing valuable traffic that could have led to more sales.
This blog explains what a good ACoS on Amazon is and why break-even ads can still boost profits. It also shares practical tips from our Amazon agency’s podcast episode to help sellers run smarter, more profitable campaigns.
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The Importance of Advertising on Amazon
Amazon ads help sellers control their product visibility in a crowded marketplace, ensuring listings reach buyers who are actively searching. Even if a product is high-quality, without ads, it can remain buried on page two or three, where conversion chances drop significantly.
Paid ads also drive sales velocity, which improves organic rankings over time. Every ad impression and purchase signals to Amazon’s algorithm that the product is relevant, meaning break-even PPC campaigns can indirectly boost revenue long after the ad spend occurs.
What’s a Good ACoS for Amazon Sellers?
Sellers should always measure their ad spend against the revenue generated from those ads, because running campaigns without tracking ACoS can lead to wasted budget and missed opportunities. To calculate ACoS, divide your total ad spend by total sales from ads, then compare it to your target margins to see if your campaigns are efficient.
A good ACoS varies depending on product costs, Amazon fees, and profitability goals, but understanding your numbers allows you to make smarter advertising decisions. Below is an example showing what a good, average, and poor ACoS might look like for an Amazon seller:
| ACoS Type | Example % | Result on Profitability |
|---|---|---|
|
Good ACoS |
15% |
Ads are controlled and efficient |
|
Average ACoS |
25% |
Ads are okay, but limit profit potential |
|
Bad ACoS |
40%+ |
Ads overspend, cutting into profits |
Why Break-Even Ads Are Actually Profitable
However, it’s important to note that break-even ads don’t automatically mean you’re running a bad ACoS. Even if an ad sale doesn’t directly generate profit, it can boost organic sales, improve keyword rankings, and increase visibility across your product portfolio.
For example, for every ad-driven sale, sellers often see multiple additional organic purchases, meaning your advertising spend indirectly grows overall revenue. This ripple effect shows that carefully managed break-even campaigns can still drive long-term profitability and business growth on Amazon.
How to Get a Good ACoS on Amazon: Best Practices
There are several strategies Amazon sellers can implement to improve their ACoS, and while every seller’s business is different, these approaches are proven to help boost profitability and traffic. Applying these techniques consistently can help you make the most of your ad spend while supporting long-term sales growth.
1. Advertise All Products Continuously
Run ads on every product in your portfolio to maintain traffic and improve keyword rankings over time. Even slower-moving items benefit from increased visibility, which can generate organic sales beyond the ad itself.
2. Prioritize Your Best Sellers
Put the most ad spend behind your top-selling items to maximize ROI and support the products driving your revenue. Adjust budgets strategically to avoid stockouts and capture sales opportunities efficiently.
3. Optimize Campaigns Manually
Manual PPC adjustments often outperform automated tools, giving you full control over bids, keywords, and targeting. Regular monitoring allows you to reduce wasted spend and improve ACoS by focusing on what works best.
4. Ignore Competitor Benchmarks
Competitor ACoS averages vary widely, so don’t rely on them to set your own targets. Focus on your own margins and goals to determine the right ad strategy for your business.
5. Use Organic Sales from Ads
Break-even ads are still valuable because every ad-driven sale often results in multiple organic purchases. This indirect benefit boosts keyword rankings and long-term listing performance.
Mastering Amazon Ads: Turn Your Spend into Smart Sales
Understanding and managing your ACoS is crucial to running profitable Amazon ads. By measuring ad spend against sales, optimizing campaigns manually, prioritizing best sellers, and leveraging break-even ads for organic growth, sellers can improve performance while maintaining healthy margins.
If you want to get good ACoS on Amazon without wasting money, let our experts guide you. Our full-service Amazon agency has a team of advertising specialists who can analyze your campaigns, fine-tune your strategy, and maximize both traffic and profitability for your products.
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