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How to Calculate Your ACoS (And Determine Your Break-Even)

Amazon is the third biggest advertising platform, offering its more than one million sellers an effective way to promote their products and brand to shoppers on and off the site. If your company plans to advertise on Amazon, however, you need to know your Advertising Cost of Sale (ACoS). ACoS measures the ratio of ad cost to sales revenue — or how much your company spent on advertising, compared to how much it earned from advertising. You can calculate your Advertising Cost of Sale with the ACoS formula: Ad spend / Ad revenue * 100.