What is ACoS and How is it Calculated?
ACoS (Advertising Cost of Sales) is the percentage of attributed sales you spent on Amazon ads. The formula is simple:
If you spent ₹5,000 on ads and those ads drove ₹20,000 in sales, your ACoS is 25%. Amazon reports ACoS separately for Sponsored Products, Sponsored Brands, and Sponsored Display. Our calculator gives you the blended number across any combination.
What is a “Good” ACoS?
There is no universal good ACoS — it depends on your margin. A 40% ACoS can be excellent if your net margin is 50%, and disastrous if your net margin is 20%. Here are rough category benchmarks we see across 5,000+ Amazon India sellers:
| Category | Median ACoS | Typical Range |
|---|---|---|
| Apparel & Fashion | 32% | 22% – 48% |
| Beauty & Personal Care | 28% | 18% – 42% |
| Home & Kitchen | 24% | 16% – 36% |
| Electronics & Accessories | 18% | 10% – 28% |
| Baby Products | 26% | 18% – 38% |
| Grocery & Gourmet | 22% | 14% – 34% |
Source: eVanik anonymized data, 5,000+ Amazon India sellers, 12-month rolling window (Apr 2025 – Apr 2026).
ACoS vs TACoS vs ROAS
- ACoS (Advertising Cost of Sales) — % of ad-attributed sales spent on ads. Use this to judge campaign efficiency.
- TACoS (Total Advertising Cost of Sales) — % of total sales (paid + organic) spent on ads. Use this to judge brand health. Healthy TACoS: 5-15% depending on growth stage.
- ROAS (Return on Ad Spend) — revenue generated per rupee spent on ads. The inverse of ACoS (ROAS = 100 ÷ ACoS). A 25% ACoS = 4x ROAS.
5 Ways to Lower Your Amazon ACoS
- Harvest negative keywords weekly. Pull your Amazon Sponsored Products search term report and negate any term with 10+ clicks and zero conversions.
- Bid by intent tier. Branded keywords get aggressive bids (low ACoS, high conversion). Competitor keywords get moderate bids. Category/generic keywords get conservative bids.
- Fix your conversion rate first. A+ content, better main images, and more reviews all lower ACoS more reliably than any bid tweak.
- Daypart your campaigns. 7-11pm IST sees 2-3x higher conversion rates on Amazon India. Increase bids during peak hours, reduce at 2-6am.
- Use negative ASIN targeting. Block ads from showing next to your own product variants or on low-converting ASINs you have identified from placement reports.
Automate this with eVanik
eVanik's Amazon PPC platform runs all five of the above tactics automatically — daily search term harvesting, intent-tier bid automation, dayparting rules, and negative ASIN targeting. Most sellers see a 25-40% ACoS reduction in 60 days.
