Operators can sometimes overcomplicate ACOS. It's very straight forward if you b
By Anthony Nguyen 🟢 · September 12, 2026 · Curated by George's Blog
Operators can sometimes overcomplicate ACOS. It's very straight forward if you break it down... here's how I look at it
At AdsCrafted, I'm working on taking AI + MCP + Amazon to a new level.
Over the years, I've consultant with 100s of brands on how to use PPC as a lever to drive organic rank. Organic rank is the highest leverage ROI.
Everyone looks at ACOS, but there's a time and place for when it's important. When it comes to organic rank, ACOS does not matter. I would spend $3 CPC for high TOS CVR than I would spend $1 CPC on low ROS/PP CVR data.
ACOS may look better at $1 CPC, but your organic ranks won't improve. The goal is organic rank. In 99% of all products listed on Amazon, you wlll make 10x more money if you can rank, than you can through PPC only.
If you can't organically rank, then profitable PPC is the next step. This is where ACOS is relevant.
ACOS = Adspend / Adsales
If you break it down further, it breaks down into these 3 factors:
1. Conversion Rate
2. Average Order Value
3. CPC
If CVR go up, ACOS goes down.
If AOV goes up, ACOS goes down. - But if CVR goes down, because AOV goes up, then ACOS may be flat.
If CPC goes down, ACOS goes down
Your change in ACOS is dependent on those 3 levers only. Next time you look at the change in ACOS, review those 3 factors and see what changed amoung them.
It's all relative to one another, so if AOV increases by 10% and CVR decreases by 10%, then your ACOS will remain flat.
At the end of the day, it's just math, but all levers are all interconnected together.
-------
If this is how you want to run your AI + Amazon operations, check out AdsCrafted!