Amazon Lesson · Module 4 of 6 · 15-20 min

Ads efficiency (ACoS / TACOS)

Separate campaign ACoS from store TACOS so ads do not eat contribution margin.

Class goal: Students stop celebrating low ACoS when TACOS destroys profit.

Talk track

  1. Define ACoS vs TACOS in one sentence each.
  2. Plug ad spend + sales into the calculator.
  3. Overlay FBA fees from Module 2 - contribution after ads.
  4. Rule of thumb: scale ads only when organic + margin hold.

Live demo

Project the tool full-screen. Students follow on phones only after you finish the first pass.

Open: ACoS / TACOS calculator

Student exercise

ACoS 25% looks fine; TACOS 40% on thin margin SKU - kill, cut budget, or raise price?