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Amazon Glossary

TACoS (Total Advertising Cost of Sales)

TACoS (Total Advertising Cost of Sales)
Amazon ad spend divided by total revenue — organic plus advertising — showing how dependent your sales are on ads and which way that's heading.

The TACoS formula

TACoS = ad spend ÷ total revenue (organic + ads) × 100. Spend £250 against £2,500 of total sales and your TACoS is 10%.

Why TACoS matters more than ACoS

TACoS reveals the flywheel. When ads drive sales velocity, Amazon lifts your organic rank, which brings free sales — so total revenue grows faster than ad spend and TACoS falls over time.

  • TACoS falling: organic is compounding; ads are building an asset.
  • TACoS flat: you're buying sales but not building rank.
  • TACoS rising: growing dependence on ads — worth investigating.

If you track one advertising number over time, make it TACoS. For the full comparison, see ACoS vs TACoS.

Related

Frequently asked questions

What is a good TACoS on Amazon?

It varies by category and stage, but many established brands sit around 8–15%. The signal that matters most is the trend: a TACoS falling quarter over quarter means advertising is building organic sales, while a rising TACoS means growing reliance on ads.

How is TACoS different from ACoS?

ACoS divides ad spend by ad-attributed revenue only, measuring campaign efficiency. TACoS divides ad spend by total revenue including organic, measuring overall business health. Use ACoS to tune campaigns and TACoS to judge whether the strategy is growing the brand.

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