Amazon PPC Analyzer - FAQ

What is ACOS and how do I calculate it?

ACOS (Advertising Cost of Sales) is the percentage of ad spend relative to ad revenue. The formula is: ACOS = (Total Ad Spend ÷ Total Ad Sales) × 100. For example, if you spend $50 on ads and generate $200 in sales, your ACOS is 25%. A lower ACOS means your ads are more efficient. Use the ylishi.tools PPC Analyzer to calculate your ACOS instantly and track trends over time.

What is a good ACOS for Amazon PPC?

A good ACOS depends on your product margin and business goals. As a general rule: below 20% is excellent (highly profitable), 20-35% is average and sustainable, and above 35% may indicate inefficient campaigns. However, newer products may accept higher ACOS (40-50%) during launch to build organic ranking. The key is ensuring your Total Cost of Sales (advertising + organic fees) stays below your profit margin.

How do I improve my PPC campaign performance?

To improve PPC performance:

• Keyword Discovery: Start with Automatic campaigns to discover converting search terms
• Keyword Migration: Move top performers to Manual campaigns for tighter bid control
• Negative Keywords: Add irrelevant terms as negatives to stop wasted spend
• Bid Optimization: Lower bids on high-ACoS keywords, raise on profitable ones
• Listing Quality: Optimize images, bullets, and A+ content to improve conversion rate

The ylishi.tools PPC Analyzer can help you identify which keywords are driving results and where to focus your budget.

What is the difference between ACOS and ROAS?

ACOS and ROAS are inverse metrics measuring the same thing from different perspectives. ACOS = (Ad Spend ÷ Ad Sales) × 100, expressed as a percentage — lower is better. ROAS = (Ad Sales ÷ Ad Spend), expressed as a multiplier — higher is better. For example: 25% ACOS = 4x ROAS. Both measure advertising efficiency, but ACOS is more commonly used in the Amazon ecosystem while ROAS is the standard metric in broader digital advertising.

How much should I spend on Amazon advertising?

Your Amazon ad budget depends on your profit margin and business stage. A common approach is to allocate 10-15% of total revenue to advertising for established products, and up to 25-30% during product launches. Start with a daily budget you can afford to lose while learning (e.g., $20-50/day), then scale winners. The key rule: your ACOS must be lower than your profit margin for ads to be profitable. Use the PPC Analyzer to model different budget scenarios and find your optimal spend level.