ACOS (Advertising Cost of Sales)
Category: Marketplace
Also searched as: ACOS
Definition (plain English)
ACOS is ad spend divided by attributed ad sales on a listing or campaign. A high ACOS can still be acceptable if contribution margin and ranking objectives support it.
Why it matters commercially
ACOS (Advertising Cost of Sales) influences listing visibility, ad efficiency, and fee-adjusted margin, so it changes channel strategy and spend allocation.
Example
The marketplace team reviewed ACOS (Advertising Cost of Sales) on top SKUs, then adjusted price, ads, and fulfillment mix to protect margin and rank.
Common mistake
Optimizing ACOS (Advertising Cost of Sales) in isolation without checking fees, returns, and contribution margin after fulfillment costs.
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