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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