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Running Amazon ads but unsure if your ACOS is actually profitable? You’re not alone—many sellers look at their ad dashboard and can’t tell if they’re winning or bleeding money slowly. Let’s break it down in a simple, seller-friendly format.
🎯 What is ACOS and Why It Matters
ACOS (Advertising Cost of Sales) tells you how much you spent on ads to generate a sale.
- Lower ACOS = Higher profit, but may limit reach.
- Higher ACOS = More visibility, but can reduce profit or even lead to losses.
To put it simply: If you’re spending too much to make a sale, you’re not advertising—you’re donating to Amazon.
📊 ACOS Performance Tiers (Generic Benchmark)
| Tier | ACOS Range | Performance Insight |
| 🔥 Amazing ACOS | 0% – 29% | High profit, strong ad efficiency |
| ✅ Good ACOS | 30% – 50% | Profitable and scalable |
| 🟡 Okay ACOS | 51% – 75% | Break-even zone, needs optimization |
| ⚠️ Bad ACOS | 76% – 99% | Profit loss likely happening |
| ❌ Very Bad ACOS | 100% or higher | You’re losing money on every sale |
💡 Real Example from Sellers
“Spent $70, made $800 in return — that’s 8% ACOS.”
This falls under Amazing ACOS — ideal for profitability and scaling.
Sellers usually start in the Okay range when launching campaigns. With optimization, targeting, negative keywords, and bid control, ACOS improves over time. The goal isn’t just to lower ACOS—it’s to find the sweet spot between profit and visibility.
Watch this video:
🧠 Understanding Profitability vs Visibility
Some products can handle a higher ACOS because they:
- Have high repeat order rates
- Are part of a branding push
- Have high lifetime value (LTV)
Meanwhile, low-margin products require tighter ACOS control to remain profitable. That’s why every Amazon account needs a custom ACOS strategy, not just a generic percentage goal.
📈 How to Improve ACOS: Quick Optimization Strategies
Improving ACOS isn’t just about lowering bids. It’s about data-backed ad refinement:
- Use Negative Keywords – Cut wasted spend from keywords that get clicks but no sales.
- Segment Campaigns by Match Type – Separate Broad, Phrase, and Exact for better control.
- Optimize Listings Before Running Ads – A poor listing with weak images or copy will always have a higher ACOS, no matter how optimized your ads are.
The secret? Better targeting and better product pages = Lower ACOS with higher conversions.
🧾 Know Your Break-Even ACOS Before Running Ads
Many sellers make the mistake of launching campaigns without knowing their profitability threshold.
- Break-Even ACOS Formula: (Profit Margin ÷ Selling Price) × 100
- Example: If your profit after fees is $10 on a $40 product, your break-even ACOS is 25%. If your ACOS goes beyond that, every sale is a loss—even if the numbers look good.
That’s why every Amazon seller should calculate their break-even ACOS before scaling ads. EHP Consulting helps sellers identify this number to create a safe spending range.
👨💼 When to Hire a Professional Ad Manager
If you’re spending hours every week adjusting bids, removing bad keywords, and still not getting results, it’s time to consider bringing in a specialized Amazon PPC consultant.
Here’s when hiring experts like EHP Consulting Group makes sense:
- Your ACOS is fluctuating and unpredictable.
- You’re scaling fast and need controlled ad spend.
- You want data reporting and campaign forecasting, not just random adjustments.
With managed ad services, sellers maintain profitability while scaling their reach, something DIY sellers struggle to balance.
🚀 Why EHP Consulting Group Helps Sellers Win With Ads
Running Amazon ads is a full-time job—one wrong keyword or aggressive bid can destroy profitability. EHP Consulting Group audits ad campaigns, adjusts bids, and aligns ad spend with actual product margins, not random benchmarks.
✅ Final Takeaway
- Under 50% ACOS? You’re in a good zone.
- Above 75% ACOS? You’re risking profit loss.
- Over 100% ACOS? You’re paying to lose money.
👉 Smart sellers don’t just run ads—they optimize ads.
If you want your campaigns reviewed, EHP Consulting Group offers expert account audits and ACOS recovery strategies.
YouTube Channel Link: EHP Consulting Group on YouTube
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Written By: Ahzel P. Miral
Email: [email protected]
Website: http://www.ehpconsultinggroup.com
Number: 925-293-3313
Date Written: October 14, 2025