How to Reduce ACOS on Amazon: Complete Step-by-Step Guide (2026)
In Amazon advertising, one metric determines whether you are making money or losing it: ACOS. Many sellers struggle with high ACOS, wasted ad spend, and inconsistent profitability. The good news? ACOS is controllable — if you understand the data behind it.
Step 1: Calculate Your Break-Even ACOS
Before reducing ACOS, you must know your break-even point. Break-Even ACOS = Profit Margin %. If your product margin is 30%, your break-even ACOS is 30%. Always analyze before reacting.
Key Optimization Steps
- Optimize Keywords: Filter high-spend, low-conversion keywords and reduce bids.
- Improve CTR: Use better main images and clear pricing strategies.
- Negative Keywords: Use search term reports to block irrelevant traffic weekly.
- Listing Quality: ACOS is often a conversion problem, not just an ad problem.
Final Thoughts
Reducing ACOS on Amazon is not about turning off ads — it’s about optimizing intelligently. With proper campaign structure and weekly data review, you can reduce wasted spend while scaling profitable sales.
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