What is a good ACoS for Amazon PPC?
A good ACoS on Amazon depends on your target margin. Break-even ACoS equals your pre-ad contribution margin (usually 25% to 40%). Profitable ACoS sits 5 to 10 points below that: most private-label brands aim for 15% to 25%. Launch campaigns often run at 40% or higher for the first 30 days on purpose.
How to set a target ACoS
Start from unit economics. Compute the SKU's contribution margin before ads (price minus referral, FBA fee, COGS, refund reserve). That percentage is your break-even ACoS. Anything below it is profitable ad spend.
Subtract 5 to 10 points to leave room for organic sales you would have won anyway, plus refunds. If contribution margin is 35%, a target ACoS around 25% keeps you profitable on incremental orders.
When high ACoS is fine
Launches, new keyword tests, and defensive branded campaigns often run at 40% or 60% ACoS. That is intentional. You are buying reviews, ranking, or defending share, not chasing this month's profit.
How Nova shows this
Nova ties product-level ad spend to each SKU's net profit so you see whether a 30% ACoS on that ASIN is actually leaving money on the table or funding a launch. TACoS sits alongside so you can spot the SKUs whose organic share is not catching up.
Frequently asked questions
Is 30% ACoS good on Amazon?
It is good on a SKU with a 40% or higher contribution margin. On a 25%-margin SKU, 30% ACoS is a loss on every ad-attributed sale.
What is the difference between ACoS and TACoS?
ACoS is ad spend divided by ad sales only. TACoS is ad spend divided by total sales, so it tells you how much of your business PPC is carrying.
Should ACoS drop over time?
Yes for mature SKUs. As organic rank builds, less ad spend converts more sales. A rising ACoS on a mature SKU usually means competitors are bidding harder or your listing conversion slipped.
What is break-even ACoS?
It is the ACoS at which ad-attributed sales exactly cover product cost, referral fee, FBA fee, and refund reserve. Above it you lose money on each ad sale; below it you profit.
See this in Nova
Nova surfaces this metric per SKU in near real time so you can act before your next monthly close catches it.
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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.
What is the difference between ACoS and TACoS on Amazon?
ACoS is ad spend divided by ad-attributed sales only. TACoS is ad spend divided by total sales (ads + organic). ACoS measures campaign efficiency; TACoS measures the pressure ads put on the whole business. A rising ACoS with a falling TACoS is healthy: ads are getting less efficient but organic sales are picking up the slack.
How do I audit wasted Amazon ad spend?
A 30-minute weekly audit catches most wasted PPC spend. Pull the search term report for 14 days, negative-out any term with 10+ clicks and zero orders, cut bids on keywords with ACoS 2x above target, and pause any SKU whose product-level ad spend exceeds its net profit for the period.
What is a good net profit margin on Amazon FBA?
A healthy Amazon FBA net profit margin sits between 15% and 25% after fees, COGS, PPC, and refunds. Under 10% usually signals hidden fees or overspending on ads. Established brands with private-label pricing power can hold 25% or more, while resellers and wholesalers typically operate closer to 10% to 15%.
How do I calculate profit per unit on Amazon?
Profit per unit on Amazon equals sale price minus referral fee, FBA fulfilment fee, per-unit COGS, allocated ad spend, and a refund reserve. A quick formula: Profit/unit = Price - (Referral% x Price) - FBA fee - COGS - (Ad spend / units sold) - (Refund rate x Price).