Start 14 days free14 days free

Break-even ACoS

Break-even ACoS is the advertising-cost percentage at which advertising uses up the remaining margin on attributed revenue. Amazon links this threshold to the available profit margin.[1] A useful calculation must therefore state which product, selling and other costs have already been deducted and use the same revenue basis as ACoS.

Suppose a hypothetical €100 of revenue excluding VAT has €70 of included costs, leaving €30 before advertising. The corresponding break-even ACoS is 30%. That only breaks even within this defined cost model. Excluded overheads, returns or additional service costs may still make the overall result negative; a lower target may be needed to retain a profit.

Content updated:

Sources

  1. What is advertising cost of sales (ACOS)? Calculation and tips | Amazon Ads

Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.