The short answer: a good ACOS is any percentage below your profit margin. If your product has a 30% profit margin, any ACOS below 30% is profitable — but the lower, the better.
The average ACOS across all Amazon categories is approximately 22-30%. However, "good" varies dramatically depending on your specific situation:
For a complete explanation of how ACOS works, read What Is ACOS on Amazon?
| Category | Average ACOS | Good ACOS | Typical Margin |
|---|---|---|---|
| Electronics | 15-25% | 10-18% | 10-25% |
| Clothing & Apparel | 25-40% | 20-30% | 30-50% |
| Home & Kitchen | 18-30% | 15-22% | 25-40% |
| Beauty & Personal Care | 30-45% | 25-35% | 40-60% |
| Toys & Games | 20-35% | 15-25% | 25-45% |
| Pet Supplies | 22-35% | 18-25% | 25-40% |
| Sports & Outdoors | 18-30% | 15-22% | 25-45% |
| Tools & Home Improvement | 12-22% | 10-18% | 15-30% |
| Books | 8-15% | 5-10% | 10-20% |
These are general guidelines. Your actual ACOS will depend on competition level, seasonality, and your listing quality. For a deeper dive into reducing ACOS in your specific category, see How to Reduce ACOS on Amazon Ads.
CTR (Click-Through Rate) measures the percentage of shoppers who see your ad and click on it. The formula: CTR = (Clicks ÷ Impressions) × 100.
| CTR Range | Rating |
|---|---|
| 0.1-0.3% | Below average — needs improvement |
| 0.4-0.7% | Average for Sponsored Products |
| 0.7-1.5% | Good — above average |
| 1.5-3% | Very good |
| 3-5% | Excellent — outstanding performance |
| 5%+ | Exceptional — rare and usually seasonal |
Is a 4% CTR good? Yes — a 4% CTR is excellent. The average Amazon Sponsored Products CTR is 0.4-0.7%, so a 4% CTR means your ad is performing 5-10x better than average. This typically indicates a strong main image, compelling price, tight keyword targeting, and high relevance between the keyword and the product.
If your CTR is low, focus on: improving your main image (the most important factor), ensuring your title matches search intent, and checking that your pricing is competitive. Adding video can also help since video thumbnails stand out in search results.
CVR (Conversion Rate) measures the percentage of shoppers who purchase after clicking your listing. The formula: CVR = (Total Orders ÷ Total Clicks) × 100.
| CVR Range | Rating |
|---|---|
| 5-8% | Below average — needs significant listing improvement |
| 8-10% | Average — room for improvement |
| 10-15% | Good — typical for optimized listings |
| 15-20% | Very good — excellent listing quality |
| 20%+ | Excellent — premium conversion performance |
The average Amazon conversion rate across all categories is 10-15%. This is high compared to traditional ecommerce (2-3%) because Amazon shoppers arrive with higher purchase intent.
How to improve your CVR:
Yes, 4.2 stars is a good rating on Amazon. The average product rating on Amazon is approximately 4.0-4.2. A 4.2-star rating places you in the upper half of all products and is typically sufficient for strong conversion.
However, there are nuances:
Star ratings directly impact your ad conversion rate and therefore your ACOS. A product with 4.5 stars will convert at a higher rate than the same product at 4.0 stars, meaning your ad spend generates more sales per dollar. Improving your rating from 4.0 to 4.5 can effectively lower your ACOS by 10-15% through improved conversion alone.
| Campaign Type | Typical ACOS | Typical CTR | Best For |
|---|---|---|---|
| Sponsored Products | 15-30% | 0.4-0.7% | Direct product promotion, keyword targeting |
| Sponsored Brands | 20-40% | 0.3-0.6% | Brand awareness, product line promotion |
| Sponsored Display | 25-45% | 0.2-0.5% | Retargeting, competitor ASIN targeting |
| DSP (Demand-Side Platform) | 30-50% | 0.1-0.4% | Upper-funnel awareness, retargeting off Amazon |
Sponsored Products typically deliver the lowest ACOS and highest CTR because they target shoppers with direct purchase intent. As you move up the funnel (Brands, Display, DSP), ACOS tends to increase — but those campaigns play a different role in driving overall sales and brand awareness.
Adding product video to your Amazon listing improves all three key advertising metrics:
Despite this proven impact, most Amazon sellers still do not have video on their listings. This represents a significant competitive advantage for those who adopt it. VEONIB makes it easy — paste any product URL, choose from 6 video styles (lifestyle, studio, luxury, UGC, brand, minimal), and download a professional video in under 60 seconds.
Instead of chasing generic benchmarks, calculate your personal targets based on your business:
For individual category benchmarks and where your numbers should be, reference the tables in sections 2 and 6 of this guide.
Product video is one of the fastest ways to improve your advertising metrics. VEONIB generates professional Amazon product videos from any URL in under 60 seconds. Choose from 6 video styles and export ready to upload.
Generate your product videoNeed to reduce your ACOS further? Read How to Reduce ACOS on Amazon Ads – 15 Proven Strategies.
A good ACOS is below your profit margin. Across categories, 15-25% is typical for established products. Electronics can aim for 10-18%, beauty 25-35%. New launches may run 30-50% temporarily.
Yes — 4% CTR is excellent. The average Amazon Sponsored Products CTR is 0.4-0.7%. A 4% CTR means your ad is performing 5-10x better than average and indicates strong image, pricing, and targeting alignment.
A good conversion rate is 10-15%. The Amazon average is 10-15%. Products with strong images, A+ Content, and video can reach 15-20% or higher.
Yes, 4.2 stars is good and above average. The sweet spot for conversion is 4.3-4.7. Below 3.5 stars, conversion drops significantly.
Product video boosts conversion rates by 15-25%, which directly improves ACOS and overall campaign efficiency. VEONIB generates videos from any product URL in under 60 seconds.
Compare your ACOS to your profit margin. If ACOS is below your margin, you are profitable. If it is above, take action: add negative keywords, optimize your listing, and add product video to boost conversion.