Which ACoS is profitable, and which one is not
ACoS is neither good nor bad on its own — it only means something next to the product’s margin. On a product with a 40% margin, a 35% ACoS still earns; on a product with a 20% margin the same ACoS is a loss. Cirometre reads the margin from the real profit calculation, not from an assumption.
Breakeven ACoS comes out of margin
A single target ACoS across the account is a rule of thumb, and it is wrong for most of the catalogue. Products do not share a margin, so they cannot share a breakeven.
Each product’s breakeven is derived from its own margin — after referral fees, FBA fees, COGS and returns — so the threshold is the product’s, not the account’s.
TACoS asks a different question
ACoS measures advertising against the sales advertising produced. TACoS measures it against total sales, including organic.
A rising TACoS with a flat ACoS means advertising is buying sales that would otherwise have come organically. That is a different problem from an expensive keyword, and it needs a different answer.
Frequently asked questions
What is a good ACoS on Amazon?
There is no single answer. An ACoS is good while it stays below that product’s breakeven, which comes from its margin after fees, COGS and returns.
What is the difference between ACoS and TACoS?
ACoS compares ad spend to the sales advertising produced. TACoS compares it to total sales, so it shows how dependent your revenue has become on advertising.