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TACOS

How hard your whole Amazon business leans on ads, organic sales included.

60 second readAppears on: Amazon Summary, SKU Performance

What it means

TACOS is your Amazon Ad Spend divided by every euro of Amazon sales in the period — advertised, organic and repeat together — shown as a percentage. Spend €2,000, sell €40,000, and TACOS is 5%: the ads cost you 5 cents of every euro the business took. That total-sales denominator is what separates it from ACOSACOSThe share of ad revenue eaten by the ads themselves.Under 20% is healthy, which divides by ad-attributed sales only.

Show the math

Formula and a worked example
TACOS = Ad Spend ÷ Total Sales

Ad Spend is everything Amazon charged you for advertising in the period, across every campaign type.

Total Sales is all your Amazon revenue in the period — ad-driven and organic together, not only what the ads are credited with.

Worked example. In March you spend €3,000 on ads. Amazon credits €10,000 of sales to those ads, and your Total Sales are €50,000. ACOS = 3,000 ÷ 10,000 = 30%, well above the 20% healthy mark. TACOS = 3,000 ÷ 50,000 = 6%, which reads as healthy. Both are true: the campaigns are expensive, and they're a small part of a business that mostly sells on its own.

Now flip it. Same €3,000 of spend, same €10,000 of ad-driven sales, but Total Sales of €12,000. ACOS is still 30%. TACOS is 25%. Nothing changed in the ad account and everything changed about the business.

It answers the question

If you switched the ads off tomorrow, how much of the business would still be there? A low TACOS says most of it; a high one says the ads are the business.

Why it matters

Think of your ads as someone handing out flyers outside your door. ACOS asks what the flyers earned; TACOS asks what the whole shop earned.

It's also the earliest warning you get. Organic rank decays quietly, ads pick up sales that used to arrive free, and Total Sales hold steady while nothing looks wrong — except TACOS, which climbs month after month. A falling TACOS on flat sales means the opposite: the business is standing on its own.

What good looks like

8%20%
HealthyNeeds work
Under 8%Ads take only a small slice of total sales.
BetweenAd reliance is moderate. Build organic sales to ease it.
Over 20%Ads eat too much of overall sales. Grow organic rankings and reviews.

These bands assume an established catalogue selling at a steady pace. A product in its launch quarter can run at 30% on purpose — you're buying rank you intend to keep, and the number should fall as reviews land.

How to improve it

LeverWhat you doExpectHow longWatch out for
Fast
Stop advertising what you can't sell
Pause ads on SKUs that are out of stock or have lost the Buy BoxAd Spend down, almost no sales lost2–5 daysCampaigns restart cold. The impression share you gave up usually has to be bid back at a higher price.
Fast
Pull budget off SKUs that already rank
Cut bids where the ads mostly recapture sales the listing would win on its ownTACOS down 2–4 points, Total Sales roughly flat2 weeksSome of those sales were incremental after all. Rank feeds on velocity, so a top SKU can drift down a place or two.
Slow
Grow organic rank on your top 5 SKUs
Reviews, a better main image and a keyword-complete title on the products that earn most of your moneyTotal Sales rise on the same Ad Spend, so TACOS falls1–2 quartersNothing moves for weeks, and the work costs money that never appears in Ad Spend — the gain looks free when it wasn't.
Slow
Build demand the ads don't pay for
Repeat buyers, brand searches, and traffic you send to the listing yourselfThe denominator grows and TACOS falls without touching a campaign1 quarter or moreDiscounts and off-Amazon traffic carry their own cost per order. TACOS improves while profit per order can fall.

Every lever costs something somewhere. The last column is the one to read twice.

Read it with

TACOS on its own tells you what the ads cost the business. Next to Total Sales, it tells you what they bought.

TACOS and Total Sales, month over month on Amazon Summary
TACOS down
TACOS up
Total Sales up

Growing on its own

Sales rose and the ads paid for less of them. Rank and repeat buyers are doing the work, which is what a launch is supposed to turn into.

Reinvest the headroom in the next SKU.

Buying the growth

Sales are up because spend is up. Fine for a launch or a Q4 push, expensive as a permanent setting — the day you stop, the growth stops.

Check ACOS against margin and set a ceiling before you add more.
Total Sales down

Pulled back cleanly

You cut spend faster than sales fell, so efficiency improved by shrinking. That's a real result, but velocity drives rank — watch the next 30 days.

Confirm units and rank held before you cut again.

Paying more for less

The ads are carrying a shrinking business. This is rarely a campaign problem — look for a lost Buy Box, a stockout, a price rise, or a new competing offer.

Check Buy Box % and stock on your top SKUs, then pricing.
TACOS + ACOSACOSThe share of ad revenue eaten by the ads themselves.Under 20% is healthy

Together they size the part of your business the ads never touch. A 30% ACOS next to a 6% TACOS means most sales arrive without ads, so you can afford expensive campaigns. The same 30% ACOS next to a 25% TACOS means the ads are the business.

TACOS + Buy Box %Buy Box %Higher is better; losing Buy Box usually hurts sales.

An account-wide number next to a per-listing one tells you where a problem started. When TACOS jumps and Ad Spend didn't move, the denominator did — lose the Buy Box on your top SKUs for a few days and Total Sales dip while the ads keep charging.

Common misreads

“TACOS went up, so the ads got worse.”

Total Sales sit in the denominator. A flat ad budget against a slow sales month raises TACOS with nothing wrong in the ad account at all. Check whether Ad Spend actually moved before you touch a campaign.

“TACOS should be as low as possible.”

A TACOS of 0% means no ads, and on Amazon that usually means falling rank. During a launch a high TACOS is the plan, not the failure. Judge it against the stage the product is in.

“TACOS and ACOS should be roughly the same.”

They answer different questions, and a wide gap is good news — it means most of your sales aren't advertised. Worry when TACOS creeps up towards ACOS, because that's the unadvertised part of the business shrinking.

Also called

Total Advertising Cost of Sales · total ACOS · total ad cost of sale

See yoursYour TACOS for the last 30 days, next to ACOS and Ad Spend.

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