How do I lower TACoS on Amazon?
Lower TACoS by growing organic sales faster than ad spend. The three levers that move it most are: cut wasted ad spend on non-converting search terms, raise listing conversion rate so ads earn more per click, and build organic rank on branded and long-tail keywords so you buy less of your own traffic.
Jul 26, 2026 · 3 min read
Why TACoS matters more than ACoS
TACoS shows what share of total revenue you spend on ads. A healthy mature SKU runs 8% to 15% TACoS. A launch or defensive push runs 20%+. If TACoS climbs while ACoS stays flat, you are winning ad sales but losing organic ones.
TACoS only falls when you know which SKUs carry the spend, which is what product-level PPC reporting shows.
The three highest-impact levers
First, run a search-term audit weekly and negative-out any term with 10+ clicks and zero orders. Second, fix listing conversion (main image, price, review count, A+ content) so each click earns more. Third, invest in branded search defence so competitors do not siphon your organic buyers into their ads.
- Negative-match wasted search terms weekly.
- Raise conversion rate on the listing itself before raising bids.
- Defend branded keywords so competitors cannot bid on your name.
- Move budget from broad to exact match on winning terms.
How Nova shows this
Nova plots TACoS trend at the SKU level next to organic vs paid sales split, so you can see whether ad spend is scaling revenue or just replacing organic orders.
Frequently asked questions
What is a good TACoS on Amazon?
8% to 15% for mature SKUs, 20%+ during launch. Under 5% usually means you could invest more without hurting margin.
Does lowering ACoS lower TACoS?
Not always. Cutting ad spend can lower ACoS but if organic sales fall too, TACoS can rise. The goal is falling ad spend with flat or rising total sales.
How fast can TACoS drop?
Realistically 30 to 60 days. Organic rank moves slowly, and negative keywords need a full purchase cycle to show impact.
Is a rising TACoS always bad?
No. During a launch it is expected. On a mature SKU it usually signals lost organic rank or a competitor pressuring your keywords.
See this in Nova
Nova surfaces this metric per SKU so you can act before your next monthly close catches it.
Try Nova free for 14 days