What is TACoS vs ACoS on Amazon?

ACoS measures ad spend as a percentage of ad-attributed revenue only. TACoS measures ad spend as a percentage of total revenue, including organic sales. TACoS gives a fuller picture of how advertising affects your whole business, while ACoS shows campaign-level efficiency.

Is a lower TACoS better on Amazon?

Generally yes, but context matters. During a product launch, a higher TACoS is expected because organic sales are low. As your listing gains organic ranking and traffic, TACoS should fall. A declining TACoS over time is a strong signal that ads are building organic momentum.

How do I calculate TACoS on Amazon?

TACoS = (Total Ad Spend ÷ Total Revenue) × 100. Find your total ad spend in the Amazon Advertising console and your total sales in Seller Central. Divide ad spend by total sales and multiply by 100 to get your TACoS percentage.

What is a good TACoS for Amazon sellers?

Most established sellers aim for a TACoS between 5% and 15%, but the right number depends on your margin and product stage. During launch, a higher TACoS is acceptable. As organic sales grow, a healthy listing's TACoS typically falls below its ACoS.

Can TACoS be higher than ACoS on Amazon?

No. TACoS cannot be higher than ACoS because TACoS uses total revenue (which always includes at least as much as ad-attributed revenue) as the denominator, making it equal to or lower than ACoS. If your figures suggest otherwise, check that you are using total revenue from Seller Central, not just the ad-attributed revenue figure.

What is TACoS on Amazon ads?

TACoS stands for Total Advertising Cost of Sales. It measures your total ad spend divided by your total revenue, both ad-attributed and organic, expressed as a percentage. Unlike ACoS, which only counts revenue Amazon attributes directly to your ads, TACoS reflects the impact of your advertising on your whole business. TACoS (Total Advertising Cost of Sales) is calculated by dividing your total ad spend by your total revenue for the same period, then multiplying by 100. Total revenue means all sales from your listing, whether or not Amazon attributes them to an ad click. For example: if you spent £200 on ads and your total sales were £2,000 (including £800 of organic sales alongside £1,200 of ad-attributed sales), your TACoS is 200 ÷ 2,000 × 100 = 10%. Your ACoS for the same period would be 200 ÷ 1,200 × 100 = 16.7%. The gap between the two figures shows how much of your revenue is coming from organic rather than paid traffic. ACoS and TACoS measure different things. ACoS shows the efficiency of your ads in isolation: how much ad revenue each pound of ad spend returned. TACoS shows how your ad spend relates to your total business revenue, organic included. The gap between your TACoS and ACoS tells you how much organic contribution your listing has. If your ACoS is 25% and your TACoS is 12%, roughly half your revenue is organic. A large gap is a healthy sign. A small gap, where TACoS and ACoS are nearly identical, suggests very little organic traffic and a high dependence on paid ads. TACoS is most useful for tracking the long-term health of a product. When you launch a new listing, ad spend is high and organic ranking is low, so TACoS is typically elevated. As your ads generate sales velocity, your organic ranking improves and organic traffic grows. The same ad spend then represents a smaller share of a larger total revenue, so TACoS falls over time. A falling TACoS alongside stable or rising total revenue is one of the clearest indicators that your advertising is working as intended: building organic momentum rather than simply substituting for it. Sellers who only track ACoS can miss this picture. ACoS may remain stable while TACoS falls, meaning the business is growing efficiently. Equally, ACoS may look fine while TACoS is rising, signalling that organic sales are declining and ads are carrying more of the load. A good TACoS depends on your product stage and margin. During a product launch, a TACoS above your ACoS target is common and often intentional: you are investing in ranking. For an established listing with healthy organic sales, many sellers target a TACoS of 5% to 15%, though the appropriate figure varies by category and margin. The most useful benchmark is your own TACoS trend rather than a fixed percentage. A TACoS that is gradually declining week on week is a positive signal, regardless of the absolute number. A TACoS that is rising despite stable ad spend suggests organic visibility is weakening and deserves investigation.

Learn what TACoS means in Amazon advertising, how to calculate Total Advertising Cost of Sales and why it gives a fuller picture than ACoS.