What is TACoS (Total Advertising cost of Sales) ?
Why is TACoS (Total Advertising Cost of Sales) important for sellers ?
How does TACoS (Total Advertising Cost of Sales) work in practice ?
Pro tip for TACoS (Total Advertising Cost of Sales)
To effectively use TACoS (Total Advertising Cost of Sales), Amazon sellers should regularly analyze their advertising performance data and adjust their strategies accordingly. A best practice is to set a TACoS target based on your profit margins and sales goals. As an example, if your profit margin is 30%, aim for a TACoS of 10% to ensure that advertising costs do not erode your profits. Regularly review your PPC campaigns and identify underperforming keywords or ads that are driving up your TACoS. By reallocating your budget to higher-performing ads and optimizing your listings for better organic visibility, you can lower your TACoS, improve overall sales performance, and enhance profitability on the Amazon platform. This proactive approach will help you maintain a healthy balance between advertising spend and revenue generation, ultimately leading to sustained growth.