Hey, I am only willing to spend $1.50 for someone to click on my advertisement and see my product listing.

But keep in mind, the company that can afford to spend the most to acquire a new customer is the company that's going to win.

The businesses that can afford to bid the highest on their advertising or spend the most on advertising to get new customers and still stay in business, those are the companies that win.

What's up, guys? You're listening to another episode of Selling on Amazon with Andy Isam.

In this episode, we're going to talk about what ACOS percentage should you be working towards

with your Amazon pay-per-click advertising campaigns.

Now, as you know, advertising is a very, very important part of growing your brand on Amazon. So in this episode, we're going to talk a

little bit more about what is ACOS. You've probably heard me mention it in previous episodes. We're

going to break it down a little bit more to make sure you understand what ACOS is. We're going to talk

about why I like measuring ACOS instead of ROAS. We're going to talk about how to lower your ACOS

and what is the target ACOS you should be

working towards. And we're also going to cover some ideas of if you're struggling to lower your ACOS,

some different things that you can do and try and what may be causing that. So first of all,

let's define ACOS ACOS ACOS. ACOS, you might hear being said multiple ways.

I personally will say both of the different ways, but it means advertising cost of sales.

So when you're in your Amazon pay-per-click advertising console and you're looking at your campaigns,

whether it's on a campaign level or an ad set level

or even an ad level, you'll be able to see, and you may have to filter your columns within

your advertising console to show a COS percentage. And again, that stands for advertising cost of sales.

It's going to give it as a percentage. So what that percentage is

or how it's calculated is simply by taking the cost that you had to spend on the advertising

to get one sale. So to do the math, let's say, let's try to keep things really simple here.

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