Glossary

What is a good ACoS for Amazon ads?

A good ACoS for Amazon ads is one below your break-even ACoS, the profit margin you earn on an order before advertising. There is no universal number: a 30% ACoS is good on a product with a 45% margin and a loss on one with 20%. As rough Indian reference points, mature Sponsored Products campaigns run 15% to 25% and launches tolerate 40% to 60%.

Rule
Good ACoS < break-even ACoS = (price - cost - fees) / price
Worked example
₹999 price, ₹400 cost, ₹250 fees: break-even 35%; target 25%
Mature products
15% to 25% (seller forum replies, agency posts)
Launch phase
40% to 60% for a few weeks
Flipkart equivalent
ROI 4 to 7 (1 / ACoS)

Start from break-even, not from a benchmark

ACoS is ad spend divided by ad sales. Whether a given ACoS is good depends on how much of each sale is profit before ads. Worked example: a ₹999 product costs ₹400 landed and carries ₹250 of Amazon fees, so ₹349 is left, a 35% margin. That 35% is the break-even ACoS. At 25% ACoS the ad order still makes ₹100; at 40% it loses ₹50. So for this product a good ACoS is anything under 35%, and a comfortable target is 25%, leaving room for returns.

This is why published benchmarks mislead. A Seller Central India thread with twelve replies on 'what is a good ACoS' settles on 'below your margin', with the top reply adding that Sponsored Products at 10% is ideal and that launches can tolerate 60%. Both are true for some products and wrong for others.

Blooprint's ACoS glossary on blooprint.in explains the metric itself; this page is about judging the number.

Reference points for Indian sellers

SituationTypical ACoSWhy
Mature Sponsored Products, exact keywords10% to 20%Proven terms, high conversion
Mature account overall15% to 25%Mix of exact, broad and auto
Sponsored BrandsOften 50% or moreAwareness placement; forum reports SB at 50%+ vs SP 10% to 15%
New product, first 4 to 8 weeks40% to 60%Buying reviews and rank
Sale event weeksUp 5 to 10 pointsCPCs rise 40% to 80% in the Great Indian Festival

These come from seller forum replies and agency posts, not from Amazon, and they describe what sellers see rather than what is profitable. Use them to sanity-check, then set the target from margin.

Setting and hitting a target ACoS

  • Set target ACoS per product 5 to 10 points below break-even so returns and cancellations do not tip it over.
  • Judge keywords against the product's target, not the account average; filter for ACoS above target with enough clicks, and cut those bids.
  • Watch TACoS alongside ACoS; a product can run above target on ad orders and still be profitable if ads lift organic sales.
  • Accept a high ACoS on purpose during launch, with an end date, then bring bids down.
  • Convert to ROI for Flipkart: ACoS 25% is an ROI of 4; a Flipkart 'good ROI' of 5 to 8 is an ACoS of 12% to 20%.

Related pages

Frequently asked questions

What does a good ACoS mean?

It means an ACoS below your break-even ACoS, the profit margin before ads. If the margin is 35%, any ACoS under 35% makes money on the ad order, and 25% is a comfortable target.

What is a good ACoS percentage on Amazon India?

Mature Sponsored Products campaigns commonly run 15% to 25%, exact-match keywords 10% to 20%, and launches 40% to 60% for a few weeks. Sponsored Brands often sit at 50% or more. These are seller-reported ranges, not Amazon figures.

What is the average ACoS on Amazon in India?

Amazon does not publish one, and averages hide margin differences. Forum threads show sellers ranging from 10% to 80%. Compare each product with its own break-even instead of an average.

Is a good ACoS the same on Flipkart?

Flipkart shows ROI, which is 1 divided by ACoS. A good ACoS of 20% is a Flipkart ROI of 5; agency posts call 5 to 8 a good Flipkart ROI, which is an ACoS of 12% to 20%.

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