Understanding profitability removes the fear of spending, replacing it with the discipline of strategic deployment.
Mudassir Fayyaz, Founder, Tabaruk Commerce
Amazon sellers don’t lose money because of high ACoS. They lose money because they don’t know their break-even ACoS.
I often see Amazon sellers asking: “Is 35% ACoS good?” “Should I reduce my bids?” “Why is my Amazon PPC not profitable?”
The answer is always the same: it depends on your numbers. Without knowing your product economics, ACoS is just a percentage.
What to Calculate Before Optimizing Any Campaign
- Product margin
- Amazon FBA fees
- Referral fees
- Shipping and storage costs
- Other operating costs
Only then can you answer:
- What’s the break-even ACoS?
- What’s the target ACoS?
- How much can we spend to improve organic ranking while staying profitable?
A Higher ACoS Can Be Healthier
A campaign with 45% ACoS can be healthier than one running at 20% ACoS if the margins support it.
That’s why I don’t optimize for the lowest ACoS in all cases. I always optimize for the highest sustainable profit.
Amazon PPC should support business growth, not just make dashboards look good.
Work With Tabaruk Commerce
Every campaign we run starts from your margins. Learn more about our Amazon PPC management, or book a free strategy call.
Mudassir Fayyaz is the founder of Tabaruk Commerce and an Amazon growth strategist. He manages 1P and 3P Amazon accounts across the US, Canada, UK, Germany, UAE, and Australia, with a focus on turning ad spend into net profit. Connect on LinkedIn.