Do you Know your Total Amazon Cost of Sales or TACoS?

Amazon Basics / September 15, 2020

Dustin Kane dives into your Amazon Cost of sales, ACoS, and your Total Amazon Cost of Sales, TACoS, for Amazon sellers using Seller Central. Learn about how to use both to understand sales performance with advertising cost.

The question of the day today is do you know your TACoS? This is a question that I get asked quite often by Amazon sellers. And we’ll spend a minute here to go over the difference between your total ACoS, also known as TACoS, and your ACoS, which you see inside your campaign manager in seller central.

I’m Dustin Cain, I’m an account executive at Sellozo. So, let’s jump right in. We are looking inside Sellozo right here, we’re looking at our product view section, which breaks down all of the data at the skew or ASIN level.

And so this is a good way for us to highlight the difference between what you see in your seller central account, which is your PPC ACoS versus your total ACoS, which includes your organic sales. So you can see here, this is one particular skew. All the data is broken down for the skew.

And you can see here that in the last 30 days, this seller spent $216 on pay-per-click. So when people clicked on those ads and then bought, that directly generated almost $6,000 in revenue. So if you take the $216 and divided it into the $6,000, you get 3.62%. That’s your PPC ACoS. That is what you will see inside seller central.

Now that is a good metric to know, but it can also be very misleading and I’ll show you why here. You can see, so we did that, that was their PPC sales. But if you look up here, this product in the last 30 days actually did $15,000 in revenue. So there were about $9,000 in organic sales and about $6,000 in PPC sales. So if you take this $216 and divided it into the $15,000, you get a total ACoS of 1.3%.

This can make a huge difference in your decision-making. It also directly reflects the impact of your campaigns and how well you’re optimizing them because as you are generating these sales on pay-per-click, you are moving your product up the rankings organically and generating more and more organic sales, hopefully across a wide variety of keywords.

So it is very important to know your total ACoS. A lot of sellers can look in there and they will see an ACoS that is above their margin, and they will start to get nervous. And if your total ACoS is well within your margin and you know that, then it might be an effective strategy you’re running.

So it’s really important to know your total ACoS. Inside Sellozo we’re reporting it for you, very easy to see, and it makes it very easy to manage your campaigns properly. Anyway, if you have any questions about this or anything else with Sellozo, I would love to talk with you. You can book a call with me. I’ve got a link to schedule a call with me and we can talk about anything Amazon.

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Do you Know your Total Amazon Cost of Sales or TACoS?

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