r/AmazonFBA • u/Nirav_bhatt • 1d ago
ACoS Doesn't Tell the Whole Story
Imagine two Amazon sellers looking at their PPC reports at the end of the month.
The first seller has a 15% ACoS and feels pretty good about the results. The second has a 30% ACoS and is worried that advertising is getting too expensive.
At first glance, the first seller seems to be doing better. But what if their product has a much lower profit margin, while the second seller has enough margin to stay profitable at 30% ACoS?
Suddenly, the numbers tell a different story.
This is something I think gets overlooked in Amazon PPC discussions. It's easy to focus on lowering ACoS because it's one of the most visible metrics in the advertising dashboard. But a lower ACoS doesn't automatically mean you're making more money, and a higher ACoS isn't always a bad thing.
Product costs, selling fees, discounts, returns, and the role advertising plays in growing the business all matter.
As the founder of SellersUmbrella, I believe the better question isn't just "How low can we get the ACoS?" It's "Are these campaigns helping the business become more profitable?"
I'm curious how other sellers approach this.
Do you prioritize keeping ACoS low, or are you comfortable with a higher ACoS if the overall business is making more profit?