TACoS vs ACoS Amazon: What Matters on Amazon (and When)

Most sellers chase a lower ACoS and then wonder why total sales do not grow.

That is because ACoS shows campaign efficiency, while TACoS shows business impact.

ACoS is ad spend divided by ad-attributed sales. TACoS is ad spend divided by total sales, including organic. Used together, they tell you if ads are buying sales or building the brand's baseline.

In this guide, we’ll explain both metrics in plain English, how to set break-even targets, when to favour one over the other, and how to read the pair without second-guessing.

What is Amazon ACoS?

Amazon ACoS (Advertising Cost of Sales) is a key metric that measures the percentage of ad-attributed sales spent on advertising. It helps evaluate the efficiency of campaigns, keywords, and ad groups, making it useful for bid optimization and cost control.

Formula: ACoS Amazon formula*: ACoS = Ad Spend ÷ Ad-Attributed Sales × 100.*

A lower ACoS reflects higher advertising efficiency, while a higher ACoS may signal overspending or the need for bid adjustments.

What is Amazon TACoS?

Amazon TACoS (Total Advertising Cost of Sales) is a performance metric that measures the percentage of total sales (both organic and advertising-driven) spent on advertising. It provides a broader view than ACoS by showing how advertising impacts overall revenue growth, not just sales directly attributed to ads.

Formula: TACoS = Ad Spend ÷ Total Sales × 100

A lower TACoS generally indicates that organic sales are increasing alongside advertising efforts, meaning ads are helping expand the overall sales pie rather than only driving paid conversions.

Quick read: ACoS keeps your ads honest. TACoS tells you if the business is compounding.

TACoS vs ACoS Amazon: Quick comparison

The numbers tell different stories. Here's exactly when each matters.

Break-even ACoS formula Amazon and target setting

You cannot pick a smart target ACoS Amazon without unit economics.

Find profit margin per SKU.

Profit margin (%) = (Price - COGS - fees - variable costs) ÷ Price × 100.

Break-even ACoS equals your profit margin.

If ACoS formula Amazon shows lower than this, ad sales can be profitable. If higher, you lose money per ad sale and must justify it with long-term gains.

Set target ACoS by goal:

• Launch and ranking: Target near break-even line, sometimes higher for short period
• Profit mode: Target well below break-even
• Defence: Brand terms should sit far below break-even

Revisit targets when costs, price, or fees change.

Here’s our guide to boost your e-commerce sales on Amazon

Amazon PPC ACoS vs TACoS: When to focus on which metric

Different stages demand different scorecards. Find out when you should use an ACoS calculator and when TACoS is more important.

Launch or relaunch

Expect ACoS to rise as you buy discovery. Watch TACoS over 2-6 weeks.

If TACoS trends down while total sales rise, the push is lifting organic sales. Track query-level funnels to see purchase share improving on target terms.

Mature SKU, profit tune

Use Amazon PPC ACoS to trim waste, then sanity-check TACoS.

If you cut bids and ACoS falls but TACoS rises or sales stagnate, you may have pulled back on non-brand queries that feed organic rank.

Defend your brand

ACoS looks great on brand. TACoS barely moves because you were going to win some of those sales.

Keep enough brand coverage to block rivals, but do not judge growth on brand ACoS alone.

Seasonal ramp

In peak weeks, CPCs often rise. "What is ACoS" becomes less important than total revenue capture.

Use TACoS to judge if the lift in total sales is worth the higher paid mix. Reduce bids on terms with weak conversion and double down where purchase share is improving.

Reading TACoS and ACoS Amazon together: Patterns and what to do

The real intelligence comes from pairing both metrics.

• ACoS down, TACoS flat or up, sales flat: You pruned too hard or hid in brand terms. Re-add high-intent non-brand and fix listing conversion.
• ACoS up, TACoS down, sales up: Healthy launch motion. Hold course while organic builds. Add exact match for proven queries.
• ACoS up, TACoS up, sales flat or down: Paying more for the same demand. Improve relevance, images, offers, and retail readiness before lifting bids.
• ACoS steady, TACoS drifting down: Compounding SEO. Keep coverage, update content, and maintain stock and buy box.

Visual guide: SPI vs CPC with ACoS bands

You need to see how Search Popularity Index relates to CPC and "ACoS formula" outcomes.

Pick one input for SPI on X-axis:

• Normalised SQP impressions for your target queries, or
• Inverted Search Frequency Rank from Brand Analytics, then normalised to 0-100

Y-axis: Average CPC for the same queries and period

Bubbles: Size by impression share or purchases

What it shows:

As SPI climbs, competition often pushes CPC up. If your TACoS falls while SPI and sales rise, your organic share is growing. ACoS may stay stable or even rise, which is fine if TACoS is trending down and total sales are up.

Practical changes that can move ACoS and TACoS

Control what you can measure. Here are a few levers that your team can use:

• Relevance and retail readiness: Match the query with titles, bullets, images, and attributes. Poor relevance inflates CPC, wastes clicks, and pushes ACoS up. Strong retail readiness improves conversion, which supports lower ACoS and lower TACoS.
• Bid and budget control: Use ACoS calculator logic for ad-group decisions. Add exact match for converting queries and negatives for waste. Watch impression share to see room to win auctions. Lift bids only where the funnel shows purchase gains.
• Mix of brand vs non-brand: Track ACoS separately but judge success in TACoS. Brand keeps competitors out. Non-brand grows reach and long-term rank.
• Margin work: Improve COGS and fees where possible. A better margin gives you higher break-even ACoS and more room to grow.
• Stock, price and buy box: OOS, weak price, and buy box loss wreck conversion. Fix those before reading ad efficiency too closely.
• Creative and content refresh: Creative Fatigue and out-of-date copy hit CTR and CVR. Refresh hooks, test angles, and keep images sharp.

The ₹10 lakh Amazon PPC question: Why most sellers never crack the code

Here's what nobody tells you about Amazon advertising: the sellers winning aren't smarter. They just measure better.

Every day, thousands of Indian sellers burn through lakhs optimising for ACoS while their competitors quietly build empires focusing on TACoS. The difference is that winners see the full picture.

You need to track both metrics across campaigns, calculate break-evens by SKU, adjust for seasonality, and make daily bid decisions based on organic lift, not just ad performance.

Does that sound like a daunting task? That's precisely why GrowthJockey - a full stack venture builder built systems and AI-tools that help dominate Amazon.

Book a 15-minute demo and see your actual TACoS trajectory mapped against profit targets. Because in Amazon's game, the metric you ignore is the one that matters most.

FAQs on TACoS and ACoS Amazon

What is a good ACoS?

There is no universal number. Calculate break-even ACoS from your margin, then set target ACoS by goal and stage. Recheck when price, fees, or costs change.

How do I lower TACoS?

Increase the share of organic sales. Improve listing quality, rank for more non-brand queries, and keep paid coverage where query-level funnels show purchase gains.

Should I ever accept a high ACoS?

Yes in launches and ranking pushes, if TACoS falls over time and total sales rise. You are buying discovery to build organic position.

Do brand campaigns inflate results?

Brand ACoS looks great, but brand spend does little for growth if it replaces organic. Keep enough for defence, invest the rest in non-brand where TACoS can improve.