In this lecture, I shared What is Amazon TACOS, and how it is different from ACOS, and discussed some TACOS Scenarios.

What is Amazon TACOS?
Total Advertising Cost of Sale is the relationship between your ad spend on Amazon and total revenue.
Simply it measures the performance of your advertising sales and organic sales.

TACoS = (Advertising Spend/Total Revenue) x 100
Total Revenue =Ad revenue + organic revenue
TACoS = $50 / $200 x 100 = 25%

TACOS scenarios:
TACoS is flat or falling – Organic sales are increasing
TACoS rising – Organic sales are decreasing, and Ad costs are increasing.
ACoS falling and TACoS rising – Organic sales are decreasing.
ACoS and TACoS both rising – Organic sales and advertising sales are low.

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