Amazon TACoS Workflow Template

Template Overview

In this workflow template, we load data on advertising costs and sales data to calculate a dataset with the following columns:

• Date
• Cost
• Revenue
• ACoS
• TACoS

How to Calculate Amazon TACoS

TACoS is calculated by dividing your ad spend by your total sales revenue (including both ad sales and organic sales) and multiplying the result by 100.

TACoS = Advertising Spend / Total Revenue

For example, if your monthly ad spend is $1,000 and your total sales are $10,000:

1,000/10,000 = 0.1

This means that for every dollar spent on advertising, the seller generates ten dollars in sales.

Difference Between TACoS and ACoS

If you're running advertising campaigns on Amazon, you're likely familiar with ACoS, but the acronyms can sometimes be confusing. Here are the key differences:

• TACoS: The ratio of ad spend relative to your total sales revenue on Amazon. It provides a holistic view of overall business performance.
• ACoS: Advertising Cost of Sale measures the relationship between advertising spend and attributed ad sales, focusing on the performance of your advertising campaigns.