ACOS vs TACOS

Understand these metrics well to sell more and better on Amazon 🚀

You probably already know what ACoS (Advertising Cost of Sale) is. We all want it low. But be careful: a low ACoS isn’t always a sign of success or profitability.

📌 ACoS (Advertising Cost of Sale) measures how much you spend on ads compared to the sales generated directly from those ads. It’s a great metric to understand whether your advertising is efficient in direct terms, but it has one important limitation: it only reflects ad-attributed sales, so you’re not seeing the full picture.

That’s where TACoS comes in:

📌 TACoS (Total Advertising Cost of Sale) measures your ad spend against your total sales (both organic and ad-driven). TACoS gives you a more complete and realistic view of how advertising impacts your overall business.

So why is it crucial to look at both metrics?

✅ A low ACoS can mean efficiency, but if your TACoS is too high, you may be relying too heavily on ads to generate sales.

✅ A healthy TACoS shows that your ad investment doesn’t just drive direct sales, it also boosts organic sales, rankings, and long-term growth on Amazon.

Conclusion: Don’t obsess over getting an ultra-low ACoS. Instead, focus on balancing ACoS and TACoS to grow sustainably.

Want a post dedicated exclusively to how to control and optimize your TACoS? Comment “TACoS” and we’ll prepare it 😉.