To lower ACoS without losing sales, cut the spend that isn’t selling before you touch the spend that is. Set a break-even ACoS per product, add non-converting search terms as negatives, fix listings that don’t convert, and move proven terms into exact match. Watch TACoS and total sales while you do it.
ACoS is ad spend divided by ad sales. You can lower it two ways: spend less, or sell more from the same spend. The second is better, but the first is faster. Good PPC work does both, in the right order.
Start with your break-even number
Above that line, the sale loses money. Below it, it makes money. Work this out for each product, because one blanket target across the catalog hides the real problems. Our free ACoS calculator does the math for you.
7 levers, ordered by impact
| Lever | Impact | Risk to sales |
|---|---|---|
| 1. Negative non-converting search terms | High | Low |
| 2. Fix listings that don’t convert | High | Low |
| 3. Move proven terms to exact match | Medium | Low |
| 4. Bid by product, not by campaign | Medium | Medium |
| 5. Adjust placements | Medium | Medium |
| 6. Separate brand and non-brand | Medium | Low |
| 7. Pull spend from weak products | Varies | Medium |
- Add negatives for terms that spend but don’t sellPull the search-term report for the last 30–60 days. Terms with plenty of clicks and no orders become negative exact. This is usually the quickest win, and it rarely costs sales.
- Fix the listing before raising the budgetIf a product gets clicks but few orders, the problem is often the main image, price, reviews or copy, not the ads. A better conversion rate lowers ACoS on every campaign at once. See our listing checklist.
- Move winners into exact matchWhen an auto or broad term keeps converting, give it its own exact-match target with its own bid. Then add it as a negative in the original campaign so you’re not paying twice.
- Set bids per product, based on marginA high-margin product can afford a higher bid than a low-margin one. Group products with similar margins together so their bids aren’t averaged out.
- Check placementsCompare top of search, rest of search and product pages. Raise the placement modifier where conversion is strong and leave it at zero where it isn’t.
- Split brand from non-brandBrand searches usually have a low ACoS and flatter the average. Keep them in their own campaigns so you can see the true cost of winning new customers.
- Pull back on products that can’t winLow stock, a lost Buy Box or weak reviews make ads expensive. Reduce spend until the underlying issue is fixed.
How to know you’re not losing sales
Read ACoS vs TACoS for how to use both numbers together.
Want a second pair of eyes?
Our in-house PPC team manages Amazon PPC for brand owners and manages to TACoS and profit, not just ACoS. If your ACoS is stuck, start with our ACoS help page or see how we run Amazon PPC management.
FAQ
What is a good ACoS on Amazon?
There’s no single number. A good ACoS is one below your break-even ACoS for that product, which is your profit margin before ad spend. A product with a 40% margin can run a higher ACoS than one with a 20% margin.
What is the fastest way to lower ACoS?
Cut search terms that spend without converting by adding them as negative keywords. It usually saves money within days and rarely costs sales, because those clicks weren’t selling anyway.
Will lowering bids reduce my sales?
It can. Lowering bids across the board often drops impressions on terms that were selling. Lower bids on terms that don’t convert, and watch TACoS and total sales as you go.
Should I pause Sponsored Products to lower ACoS?
Usually not. Pausing everything lowers ACoS to zero but can hurt organic rank and total sales. Trim the waste instead and keep the campaigns that sell.
How long does it take to lower ACoS?
Negative keywords and bid changes show up within one to two weeks. Listing and conversion fixes take longer to show, but they lower ACoS on every campaign at once.