Glossary
TACoS (Total Advertising Cost of Sales)
The ratio of total ad spend to total revenue, including organic sales. Measures how advertising affects the whole business.
Why it matters for Amazon sellers
TACoS reveals whether your advertising is building organic momentum or just buying sales. A declining TACoS with stable revenue means ads are driving organic rank. A rising TACoS means you are increasingly dependent on paid traffic. It is the single best indicator of long-term advertising health for Amazon sellers.
How Profasee handles this
Marko monitors TACoS trends alongside ACoS and adjusts bids and budgets to drive organic rank — not just immediate conversions. The goal is efficient total revenue growth, not just low ACoS on individual campaigns.
Frequently asked questions
What is TACoS in Amazon advertising?
TACoS (Total Advertising Cost of Sales) is your total ad spend divided by your total revenue — not just ad-attributed revenue. It shows what percentage of all your sales revenue goes to advertising, giving a complete picture of ad efficiency.
What TACoS percentage should I aim for?
Most healthy Amazon businesses target TACoS between 5% and 15%, but the right number depends on your category, margins, and growth stage. Launch-phase products will have higher TACoS. Mature products should see TACoS decline over time as organic sales grow.
Related terms
ACoS (Advertising Cost of Sales)
The ratio of ad spend to ad revenue on Amazon. Lower ACoS means more efficient advertising....
Read more →
Amazon PPC
Pay-per-click advertising on Amazon via Sponsored Products, Sponsored Brands, and Sponsored Display ...
Read more →
Contribution Margin
Revenue minus all variable costs (COGS, fees, shipping, advertising). The real profit metric for Ama...
Read more →