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COS (cost of sales)

Definition

Cost of sales (COS) indicates how much a retail or wholesale business spends on the products it purchases from suppliers for resale. Traditionally it has only offered ACoS (Advertising Cost of Sale). ACoS increases when spend grows faster than revenue and goes down when revenue grows faster than spend.

Application

Formula for calculating COS:  

ACoS = Ad Spend/Ad Revenue

ACoS, however, provides a straightforward way to gauge the profitability of a campaign — making it great for understanding your break-even point. To understand what is driving (and impeding) ACoS, focus on CVR, CTR and CPC. (Conversion-Rate, Click-Through-Rate, Cost-Per-Click). 

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Matej Karaba

Long-term Impact & Business Consultant

Michal Lubelec

E-commerce Performance & Strategy Consultant

Marek Ďuračka

Business & Marketing Strategy Consultant

  • Matej Karaba

    Long-term Impact & Business Consultant

  • Michal Lubelec

    E-commerce Performance & Strategy Consultant

  • Marek Ďuračka

    Business & Marketing Strategy Consultant

Matej is Long-term Impact & Business Consultant and will help you with:

  • Coverage of the marketing mix potential
  • Long-term sustainability
  • Development of a business strategy
  • Creativity in technology
  • Managing IT projects
  • UX/UI and SEO

Michal is Consultant for E-commerce Analytics and Measurement and will help you with:

  • data and analytics settings
  • bidding and budget planning
  • campaign automation

Marek is Social Media Consultant will help you with:

  • Facebook
  • Instagram
  • ROI Hunter