TACOS divides ad spend by TOTAL revenue (organic + ad-attributed), showing how dependent your business is on advertising.
TACOS (Total Advertising Cost of Sales) is ad spend divided by your total Amazon revenue — organic sales included — expressed as a percentage.
Formula: TACOS = (ad spend ÷ total revenue) × 100
Where ACOS tells you whether your ads are efficient, TACOS tells you whether your business is becoming more or less dependent on ads. A healthy trajectory is a falling TACOS over time: ads drive sales velocity, velocity improves organic rank, and organic sales grow faster than ad spend.
Reading the trend: Rising ACOS with flat TACOS usually means ad efficiency slipped. Flat ACOS with rising TACOS means organic sales are shrinking relative to paid — a flywheel warning sign worth investigating.
Most established sellers operate between 5% and 15% TACOS; new launches often run 25%+ on purpose while building rank.
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