Irrelevant search terms
Broad and auto campaigns catching searches that never convert.
Amazon ACoS too highACoS too high?
ACoS too high?
Fix the cause, not just the bids.
Cutting bids across the board lowers ACoS, but it often cuts sales too. A better approach starts with where the waste actually is.
Book a strategy call ★ Trustpilot 4.4/5 · $100M+ revenue for client brands · 60+ brands managedQuick checks
- Search terms
Spend on irrelevant searches? - Conversion
Is the listing converting the clicks? - Targets
Is your ACoS target based on margin?
Common reasons ACoS climbs
Weak listing
Good clicks, poor conversion: the listing is the problem, not the ads.
Overbidding on top terms
Paying for the top spot on terms you can’t win profitably.
No negative keywords
The same waste repeats every week.
Wrong target
One ACoS target for every product, regardless of margin.
Launch spend
New products need higher spend for a while, and that’s fine if it’s planned.
ACoS vs TACoS
| ACoS | TACoS | |
|---|---|---|
| Formula | Ad spend ÷ ad sales | Ad spend ÷ total sales |
| Tells you | How efficient the ads are | How dependent the business is on ads |
| Good sign | Steady or falling at the same sales level | Falling over time as organic sales grow |
| Use it for | Bid and campaign decisions | Overall channel health |
How we bring ACoS down
01
Set targets
Break-even and target ACoS per product from your margins.
02
Cut waste
Negatives and bid changes from the search term report.
03
Fix conversion
Listing, images and price on the products that leak.
04
Reinvest
Move budget to terms that make money.
$100M+
revenue generated for client brands
60+
brands managed in-house
$3M+
monthly ad spend managed
4.4/5
on Trustpilot (13 reviews)
What is a good ACoS?
There’s no single number. A good ACoS is below your break-even, which depends on your margin. A launch product can run above it for a while; a mature product should usually sit well below it.
Our team manages $3M+ in monthly ad spend. We judge accounts on TACoS and profit, not ACoS alone. See Amazon PPC management and ACoS vs TACoS, or try the ACoS calculator.
My ACoS is over 50% and I’m losing money on ads. Who’s the best Amazon PPC agency to fix this?
Start by cutting non-converting search terms, fixing bids against break-even ACoS and checking listing conversion. A PPC agency should show a plan in the first audit. CommerceKind manages $3M+ in monthly ad spend across 60+ brands.
Amazon agency for ACoS reduction
CommerceKind is an Amazon agency for ACoS reduction: we cut wasted spend, fix bids and structure, and improve conversion on the detail page, while tracking TACoS so lower ACoS doesn’t shrink sales.
Can an agency lower my ACoS without losing sales?
Usually, by cutting waste and improving conversion first. We track TACoS and total sales alongside ACoS.
What is the difference between ACoS and TACoS?
ACoS is ad spend over ad sales; TACoS is ad spend over total sales. See TACoS.
Related: ROAS improvement · TACoS · Brand services · For agencies · Contact us
Frequently asked questions
Why is my ACoS so high?
Usually wasted spend on irrelevant search terms, a listing that doesn’t convert, overbidding on competitive terms or missing negative keywords.
What is a good ACoS on Amazon?
One below your break-even ACoS, which is your profit margin before ad costs. It varies by product and stage.
Should I just lower my bids?
Not across the board. That often cuts sales. Find where the waste is first and fix those campaigns and listings.
What is TACoS?
Total advertising cost of sale: ad spend divided by total sales. It shows how much the business relies on ads.
Can you audit my PPC for free?
Yes. Our free audit covers ads, listings and account health.
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