Section 1: What Is ACOS?

ACOS stands for Advertising Cost of Sales, calculated as: 

ACOS = (Ad Spend ÷ Ad Revenue) × 100

It tells you how much you’re spending on ads to earn $1 in sales. The lower the ACOS, the more efficient your campaign.

🆚 ACOS vs. ROAS 

While ACOS tells you how much you spend to earn a sale, ROAS (Return on Ad Spend) tells you how much you earn for every dollar spent. They’re inverse metrics but both are essential for measuring performance.

📊 Average ACOS Benchmarks by Category: 

| Category               | Average ACOS   |

|————————|—————-|

| Home & Kitchen         | 28–35%         |

| Beauty & Personal Care | 30–40%         |

| Electronics            | 20–30%         |

| Pet Supplies           | 25–32%         |

A good rule of thumb: aim for an ACOS lower than your profit margin.

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Section 2: The Role of Strategy in Lowering ACOS

A well-structured campaign is the foundation of a low-ACOS strategy.

✅ Proper Campaign Structuring

Separate campaigns based on:

– Match type (Broad, Phrase, Exact)

– Branded vs. non-branded terms

– Product groups (high vs. low performers)

This allows for more control over bidding, placement, and performance analysis.

🎯 Keyword Segmentation

Don’t lump all keywords into one campaign. Segment your keywords by:

– Intent (buying vs. browsing)

– Performance tier (high, mid, low)

– Long-tail vs. short-tail

This helps scale profitable terms while cutting budget from underperformers.

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Section 3: Bid Optimization Tips

Strategic bidding is one of the most effective levers for reducing ACOS.

🔁 Real-Time Bid Adjustments 

Use Amazon’s “Dynamic Bidding – Down Only” to automatically reduce bids for low-performing placements.

⚙ Automation Tools 

Leverage tools like:

– Amazon’s Bid+ (now called Dynamic Bids)

– Third-party platforms (like Helium 10 or Perpetua)

Sure! Here’s the continuation and completion of the blog post, including a strong call-to-action (CTA) for your website services:

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Conclusion: Let Experts Handle It

Reducing ACOS doesn’t just happen—it requires a targeted, data-driven strategy executed consistently over time. While there are multiple ways to optimize your Amazon PPC campaigns, ensuring proper campaign structure, bid management, and keyword refinement is essential to reduce ACOS effectively.

At eSellersLab, we specialize in building highly structured Amazon PPC campaigns that maximize ROAS, reduce ACOS, and drive sustainable growth. Our team of experts will monitor, analyze, and continuously optimize your campaigns to ensure that every advertising dollar works harder for your business.

Why Choose eSellersLab for Your PPC Needs?

– Expert PPC Management: We understand the intricacies of Amazon advertising and will apply best practices to every aspect of your campaigns.

– Proven Track Record: We have a history of reducing ACOS and increasing sales for clients across various categories.

– Data-Driven Decisions: Our strategies are based on real-time data and continual testing to ensure optimal performance.

🎯 Want to see up to 5× sales growth and achieve your lifetime best ACOS?

Let’s work together to make every ad dollar count.

👉 [Contact eSellersLab Today for Expert PPC Management Services!](#) 

Book a Free Consultation to discuss your goals and how we can help you achieve them!