{"id":13574,"date":"2020-02-01T15:07:08","date_gmt":"2020-02-01T15:07:08","guid":{"rendered":"http:\/\/www.repricerexpress.com\/?p=13574"},"modified":"2020-09-24T12:23:51","modified_gmt":"2020-09-24T11:23:51","slug":"amazon-tacos","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/amazon-tacos\/","title":{"rendered":"What is Amazon TACoS?"},"content":{"rendered":"

If you’re a third-party Amazon seller advertising on the marketplace then it’s essential that you measure how it performs. Sellers want to gain buyers’ attention affordably \u2014 so, if you’re spending a lot of money on advertising and not seeing much back in terms of extra sales, then you might want to stop or optimise it.<\/strong><\/p>\n

In a study by Econsultancy<\/a>, 77% of marketers agreed that the success of advertising should drive the level of budget allocated to it.<\/p>\n

There are many ways to measure the success of Amazon advertising<\/a>. This post will examine Amazon TACoS which has started to gain traction recently as a key performance metric.<\/p>\n

Before we dive in any further, let’s start with the basic question.<\/p>\n

What Does Amazon TACoS Mean?<\/h2>\n

Amazon TACoS has nothing to do with Mexican food<\/a>. Instead, it stands for the total advertising cost of sales<\/strong>. It measures your advertising spend relative to the total revenue generated.<\/p>\n

The TACoS metric is growing in popularity across the ecommerce sector and gives you a snapshot of how your Amazon PPC ads<\/a> are performing and directly affecting sales<\/strong>.<\/p>\n

How to Calculate Your TACoS<\/h2>\n

To work out your TACoS, you divide your total advertising spend by your total sales revenue and then multiply it by 100.<\/p>\n

TACoS = (Advertising Spend\/Total Revenue) x 100<\/strong><\/p>\n

With this information, you can better decide how much your advertising is driving sales.<\/p>\n

How to Identify If You Have a Good Amazon TACoS<\/h2>\n

Amazon sellers worry about how their Amazon ads are performing. If terms of TACoS, the lower the better,<\/p>\n