Marketing Metrics

ACoS (Advertising Cost of Sales)

2026-05-31 7 min read

ACoS (Advertising Cost of Sales) is the ratio of ad spend to attributed revenue on Amazon advertising. Formula: (Ad Spend / Attributed Sales) × 100. ACoS is the inverse of ROAS — lower ACoS = more efficient ads. Distinct from TACoS (Total ACoS), which includes organic sales. Best-in-class Amazon sellers target ACoS 15–25% depending on category margin profile. ACoS above 40% usually destroys gross margin.

TL;DR

<strong>ACoS (Advertising Cost of Sales)</strong> is the ratio of ad spend to attributed revenue on Amazon advertising. Formula: (Ad Spend / Attributed Sales) × 100. ACoS is the inverse of ROAS — lower ACoS = more efficient ads. Distinct from <a href="/glossary/tacos" class="text-brand-600 underline decoration-brand-200 underline-offset-2 hover:text-brand-700">TACoS</a> (Total ACoS), which includes organic sales. Best-in-class Amazon sellers target ACoS 15–25% depending on category margin profile. ACoS above 40% usually destroys gross margin.

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Sources

Definitions and benchmarks reference primary sources from the D2C Metrics pillar. Verified at publication.

  1. 1 DTC State of the Industry 2025 — Common Thread Collective, 2025. View source .
  2. 2 Shopify Plus DTC Benchmarks 2025 — Shopify, 2025. View source .
  3. 3 Klaviyo Ecommerce Benchmarks — Klaviyo, 2025. View source .
  4. 4 Northbeam DTC Marketing Report — Northbeam, 2025. View source .

Fairview cites primary sources only — government data, academic research, industry benchmarks from named publishers, and official vendor documentation. See our editorial standards.