Key takeaways

  • Know your break-even ACoS before you change anything
  • Remove wasted search terms first
  • Move budget to keywords that already convert
  • Change little and often, then measure

What ACoS means

ACoS is your ad spend divided by the sales your ads bring. If you spend €20 on ads and get €100 in sales, your ACoS is 20%.

ACoS = ad spend ÷ ad sales × 100

A low number is not always good. A very low ACoS can mean you are not spending enough to grow.

Find your break-even ACoS

Your break-even ACoS is the highest ad cost you can pay and still make no loss on a sale. It equals your profit margin before ads.

ExampleA product sells for €30. After product cost, fees and shipping you keep €9. Your margin is 30%, so your break-even ACoS is 30%. Above that, each ad sale loses money.

Set a target below this number. That gap is your profit.

Clean up wasted spend

  1. Open your search term report for the last 30 to 60 days.
  2. Find terms with many clicks and no orders.
  3. Add them as negative keywords.
  4. Lower bids on terms that sell, but slowly and below your target.

This step alone often reduces ad cost without touching sales.

Give each keyword a clear job

Split campaigns by purpose. Use one for brand terms, one for proven non-brand terms and one for discovery. This lets you set different targets for each and see what really works.

  • Brand: low ACoS, protects your name.
  • Proven: medium ACoS, drives profit.
  • Discovery: higher ACoS, finds new keywords.

Fix the listing too

Ads send shoppers to your listing. If the listing converts poorly, you pay for clicks that do not sell. Improve your main image, title, bullets and price before you add budget.

Change little, measure often

Change bids in small steps, check results after a few days, and write down what you did. Large changes make it hard to learn what worked.

Stefano Puddu
Stefano Puddu & the Ecom Partner teamAmazon Europe growth partner · Barcelona, Spain