Quick Answer
ACoS = Ad Spend ÷ Ad Revenue × 100. TACoS = Ad Spend ÷ Total Revenue × 100. ROAS = Revenue ÷ Ad Spend. Lower ACoS/TACoS = more profitable ads. Higher ROAS = better returns.
Understanding ACoS, TACoS and ROAS for Amazon Advertising in India
Three metrics every Amazon seller must understand to run profitable PPC campaigns — what they mean, how to calculate them, and what good looks like for Indian marketplaces.
What is ACoS?
ACoS (Advertising Cost of Sales) measures how much you spend on ads for every rupee of ad revenue generated.
ACoS = (Ad Spend ÷ Ad Revenue) × 100
Example: ₹5,000 spend → ₹25,000 revenue = 20% ACoS
Break-even ACoS = your profit margin percentage. If your margin is 35%, your break-even ACoS is 35%. Target ACoS should be 5–10 points below your break-even for profitability.
What is TACoS?
TACoS (Total Advertising Cost of Sales) measures ad spend against your total revenue — both paid and organic combined. It is the most important metric for long-term Amazon growth.
TACoS = (Ad Spend ÷ Total Revenue) × 100
Example: ₹5,000 spend → ₹80,000 total revenue = 6.25% TACoS
As your organic rank improves, TACoS naturally falls even if ACoS stays the same — because organic sales grow. A falling TACoS over time means your ads are building long-term organic momentum.
What is ROAS?
ROAS (Return on Ad Spend) is the inverse of ACoS — it tells you how much revenue you earn per rupee of ad spend. Higher ROAS = better.
ROAS = Ad Revenue ÷ Ad Spend
Example: ₹25,000 revenue ÷ ₹5,000 spend = 5x ROAS
Benchmark Numbers for India
| Category | Good ACoS | Good TACoS | Good ROAS |
|---|---|---|---|
| FMCG / Grocery | 15–25% | 5–10% | 4–7x |
| Electronics | 20–30% | 8–12% | 3–5x |
| Apparel / Fashion | 25–35% | 10–15% | 3–4x |
| Health & Nutrition | 20–28% | 7–12% | 3.5–5x |
| Home & Kitchen | 18–28% | 6–10% | 3.5–5.5x |
| Beauty & Personal Care | 22–32% | 8–14% | 3–4.5x |
How to Improve Your ACoS
- Add negative keywords to cut irrelevant spend (biggest quick win)
- Pause keywords with high spend but zero sales (after 15+ clicks)
- Lower bids on broad match — they burn budget on irrelevant terms
- Use exact match for your best converting keywords
- Improve listing conversion rate — good images and A+ content reduce ACoS
- Run dayparting — pause ads during low-conversion hours (usually 2–6am)
- Separate brand and non-brand campaigns for accurate measurement
Need Help Reducing Your ACoS?
EcomSarthi's PPC team reduces ACoS by 30–50% on average within 60 days using negative keyword sculpting, bid restructuring and dayparting.
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