What Is a Good ROAS on Amazon? (And How to Improve It)

A good ROAS on Amazon can help you scale high-performing keywords, control your bids, and increase profit without blindly raising your budget. But what is a good ROAS on Amazon?

A good ROAS (Return on Ad Spend) on Amazon is generally between 3x to 5x. That means for every $1 you spend on ads, you should earn $3 to $5 in revenue. The ideal ROAS that works for your business depends on your margins and advertising costs.

In this guide, you’ll learn how to calculate your ROAS, what affects it, and where to find it. You’ll also know the exact steps to improve your ROAS based on the product, margins, and goals.

What is ROAS on Amazon?

ROAS stands for Return on Advertising Spend. It shows how much revenue your ads generate for every dollar you spend.

If your ROAS is 3.0, you earn $3 in sales for every $1 spent on ads. It’s one of the most important metrics in Amazon PPC because it tells you how efficiently your campaigns convert ad spend into revenue.

For example, if you spend $100 on ads and generate $500 in attributed sales, your ROAS is 5.0. This means you earned five times what you spent on ads. The higher the ROAS, the more efficient your campaign is.

ROAS is the reverse of ACoS (Advertising Cost of Sales).

If ROAS = Ad Revenue ÷ Ad Spend, then ACoS = Ad Spend ÷ Ad Revenue.

Why ROAS Matters in Amazon Advertising

ROAS helps you understand if your ads are making you money. It’s a core metric that guides your decisions on:

How much to spend on ads
Which keywords to scale or pause
Which ad types perform best for your product

It also helps you compare performance over time. If your ROAS drops from 4.0 to 2.5, you’ll know something’s off and can fix it quickly.

ROAS also connects directly to your product margins. For example, If your ROAS is 2.0 and your product has a 50% profit margin, you’re likely making money. But if your margin is only 25%, that same ROAS could mean you’re losing profit on every sale.

How to Calculate Amazon ROAS?

Return on Advertising Spend shows how much revenue you earn for every dollar spent on Amazon ads. You can divide your total ad-attributed sales by your ad spend to calculate it.

For example, if you spend $100 on ads and make $500 in sales, your ROAS is 5.0. That means you’re earning $5 in revenue for every $1 spent.

You can find these numbers in Seller Central by going to the Advertising Console and opening Campaign Manager. Each campaign shows a “Spend” and “Sales” column. Amazon usually shows your ROAS by default, but you can calculate it manually using this formula.

Amazon ROAS Calculator

Ad Revenue ($): Ad Spend ($):

ROAS only makes sense when you know your profit margin. That’s because a high ROAS doesn’t always mean profit, and a low ROAS doesn’t always mean a loss.

If your product margin is 25%, your breakeven ROAS is 4.0. Anything lower means you’re losing money on ads.

ROAS is helpful, but only becomes meaningful when you compare it to your profit margin. That’s where breakeven ROAS comes in. If your product margin is 25%, your breakeven ROAS is 4.0. Anything lower means you’re losing money on ads. Here’s a quick reference table.

Profit Margin	Breakeven ROAS
10%	10.0
20%	5.0
25%	4.0
33%	3.0
50%	2.0

ROAS helps you see how well your ads are performing. But to make the right decisions, you must compare it with your product margin. That’s how you know if your campaigns drive sales or make you money.

What is a Good ROAS on Amazon?

There’s no single ROAS number that works for every seller. A good ROAS depends on your profit margin, product type, campaign goals, and how much you’re willing to spend to grow. Before deciding if your ROAS is good, compare it with your breakeven point, not someone else’s results.

Most sellers see anything below 2.0 as a loss unless the seller has very high margins or runs awareness campaigns. A range between 2.0 and 3.0 is often break-even or generates low profit.

Hitting 3.0 to 4.0 usually means your ads run efficiently and generate absolute returns. If you’re hitting 4.0 to 6.0 or higher, your campaigns are likely strong enough to scale.

ROAS Range	What It Means
Below 2.0	Often unprofitable unless your margins are very high
2.0 – 3.0	Near breakeven or low profit for most products
3.0 – 4.0	Healthy and profitable for many sellers
4.0 – 6.0+	High-performing and scalable camping’s

A high ROAS doesn’t always mean high profit. If you’re getting a great return on a small spend but not enough total sales, your business won’t grow.

Factors That Affect Your ROAS on Amazon

There’s no universal ROAS target that works for every seller. What counts as good depends on several important factors that shape your campaign’s potential and profitability.

Profit Margin: The amount of ROAS required to break even is measured by your profit margin. If your margin is high, like 60%, even a 2.0 ROAS can be profitable. But with a 20% margin, you may need a ROAS of 5.0 or more. Always know your breakeven ROAS before judging performance.

Product Category: Some categories cost more to advertise compared to others. Markets like supplements or electronics often have high CPCs, which leads to lower ROAS. Less competitive categories provide more substantial returns with less spend.

Ad Type: Different ad types can perform differently. Sponsored products often bring the highest ROAS because they target shoppers ready to buy. Sponsored Brands focus more on visibility, so their ROAS is usually lower.

Campaign Purpose: Not every campaign is built for immediate profit. Some are designed to boost ranking, collect reviews, or build brand awareness. These often show lower ROAS at first but support long-term growth.

Product Lifecycle: You might get a lower ROAS when you first launch a product. But you’re still building reviews and rank, so lower conversion rates. The ROAS will usually go up as the listing improves.

When Low ROAS Can Still Make Sense

Low ROAS doesn’t always mean failure. Sometimes a low ROAS is expected and acceptable. That includes:

Launching a new product and building visibility
Testing new keywords or targeting segments
Running campaigns focused on long-term brand growth

Don’t kill low-ROAS campaigns without looking at the whole picture. They can be a part of your long-term strategy.

Where to Find Your ROAS in Seller Central?

Amazon automatically shows your ROAS inside the advertising dashboard. It appears alongside Spend, Sales, and ACoS in most campaign views. You can find it by going to Campaign Manager in Seller Central’s Advertising Console.

Here’s how to find your ROAS in a few quick steps:

Step 1 : Log in to your Amazon Seller Central account.

Step 2 : Click on the “Advertising” tab in the top menu.

Step 3 : Select “Campaign Manager.”

Step 4 : Choose a campaign type: Sponsored Products, Sponsored Brands, or Sponsored Display.

Step 5 : In the campaign dashboard, look for the column labeled “ROAS” or “Return on Ad Spend.”

Step 6 : ROAS can be viewed at the portfolio, campaign, ad group, and keyword levels. Use the date filter in the top right to view current or historical ROAS data.

If you don’t see the ROAS column, click “Columns,” then “Customize Columns,” and add it manually. You can also view ACoS, CTR, Clicks, and other key metrics here for side-by-side comparison.

You can also view ROAS in a few other places:

Portfolio View- shows the combined ROAS across grouped campaigns
Search Term Reports- downloadable reports where you can calculate ROAS manually using sales and spend
Amazon DSP Console- if you’re running display ads through Amazon’s Demand Side Platform

Whether looking at a single keyword or reviewing overall portfolio performance, knowing where to find your ROAS makes it easier to track results and make better ad decisions.

Amazon Tools to Track ROAS

You can’t improve your ROAS if you don’t track consistently. Amazon provides several tools inside Seller Central to help you monitor performance. These tools offers different details that you can use to optimize your campaign.

Tool	Use Case	ROAS Tracking Level
Campaign Manager	Real-time performance inside Amazon	Campaign / Ad Group / ASIN
Search Term Report	Keyword-level ROAS insights	Manual calculation
Brand Analytics	Branded vs non-branded term performance	Category / Keyword
Amazon Attribution	Track external ad returns	Off-Amazon campaigns
Search Query Performance	Funnel-wide tracking & keyword trends	Organic + paid combined

Campaign Manager

Track ROAS across campaigns, ad groups, and keywords in one place. You can customize the column to view ROAS alongside spend, sales, ACoS, and more. Use filters to break down results by product, date, or targeting type.

Search Term Report

You can download this report from Campaign Manager. It shows each keyword’s performance, including clicks, spend, and ad-attributed sales. Use this data to calculate ROAS manually for each term and spot keywords that waste budget.

Brand Analytics

If you are Brand Registered, this tool shows which keywords and ASINs drive clicks and sales. You can compare branded and non-branded traffic and see how different terms affect ROAS across your catalog.

Amazon Attribution

This tool tracks the ROAS of off-Amazon campaigns, such as traffic from social media, email, or influencers. It allows you to track the revenue generated from external advertisements connected to Amazon product listings.

Search Query Performance Report

This report combines paid and organic performance by search term. It helps you understand how ROAS fits the whole funnel, showing how search terms perform across ad and organic placements.

Don’t rely on just one view to get the most out of your data. ROAS looks different across tools, so cross-checking helps you make smarter decisions.

The Most Effective Ad Campaign Types for ROAS

Amazon has different types of ads, and each type is used for different purposes. Some ad campaigns are built for direct conversation. Where others might focus on brand visibility or product discoverability.

Here’s how each ad type compares to others:

Ad Type	Avg ROAS Potential	Funnel Stage	Goal
Sponsored Products	High	Bottom	Sales / Conversion
Sponsored Brands	Medium	Mid	Brand Visibility / AOV
Sponsored Display	Low to Medium	Top & Mid	Awareness / Retargeting
Sponsored Video	Variable	Mid	Engagement / Brand Lift

Amazon ROAS Benchmarks by Industry

ROAS varies by what you sell, who you’re targeting, and how much competition you face. Every Amazon category has its own CPC range, profit margins, and buyer behavior. That’s why a 3.0 ROAS would be great for one product and too low for another.

Before comparing numbers, look at your own margins, product stage, and campaign goals. A good ROAS depends on your break even point, not an industry average.

Here are ROAS benchmarks by category:

Category	Avg ROAS (Range)	Notes
Health & Supplements	2.0 – 3.0	High CPC, strong competition, lower margin
Home & Kitchen	3.0 – 4.5	Balanced CPC, solid volume, strong conversion rates
Books & Digital Products	3.5 – 5.0	Low CPC, high margin, long tail keyword opportunities
Electronics	2.0 – 3.5	High CPC, tight margins, price-sensitive shoppers
Apparel & Fashion	1.5 – 3.0	High return rates, visual focus, wide targeting
Beauty & Personal Care	3.0 – 4.0	Branding matters, high LTV helps long-term ROAS
Toys & Baby	3.0 – 4.5	Seasonal shifts, trust-driven purchases
Pet Supplies	3.5 – 4.5	Loyal customer base, good margins, repeat purchases

These numbers help set expectations, not rules. If your ROAS is lower than average, consider where your product is in its lifecycle. Are you still building reviews? Testing keywords? Before making changes, focus on improving your listing and refining your targeting.

How to Improve Your Amazon ROAS?

Improving ROAS is not just about spending less; it’s about spending smarter. It means reducing wasted traffic and increasing the chances that shoppers buy.

Here are some proven strategies to help you optimize your Amazon ads, boost conversions, and drive better returns.

1. Optimize Amazon Product Listing

Start by optimizing your Amazon product listing pages. A shopper can click to your product page, but if the page doesn’t convert, your ROAS drops. So, ensure your product title, image, bullet points, and A+ content are polished.

Here is a list of all the Amazon product listing practices you should follow:

Product titles with clear keywords
High-resolution images and alternate views
Bullet points that highlight benefits
A+ content that builds trust
Competitive pricing and solid review count

ROAS starts improving when your product page converts the clicks your ads bring in.

2. Use High-Intent Keywords

Targeting high-intent keywords also matters as much as your budget. Broad match keywords often bring the wrong traffic that does not convert. Instead, use more exact phrases that match types to narrow your reach and improve conversion rates.

Here are some tips to keep in mind when choosing high-intent keywords:

Use exact and phrase match types for better control
Focus on buyer-intent keywords like “buy,” “best,” “top rated”
Check your Search Term Report to find proven converting terms

3. Add Negative Keywords

Don’t forget to add negative keywords to your campaigns. Adding negative keywords blocks your ads from showing on irrelevant searches that waste budget.

You can use both phrase and exact match negatives to filter out low-performing terms. This one improvement alone can immediately clean up your spend and improve ROAS.

4. Adjust Bids Based on Performance

Spending more on a bid doesn’t always mean earning more. Only raise bids on the keywords that have already been proven profitable.

Lower or pause the keywords that waste the budget without converting. If you’re unsure how to test, use Amazon’s “dynamic bidding (down only)” to control spend automatically as you test.

5. Improve Click Through Rate (CTR)

Improving your click-through rate (CTR) helps bring in more qualified traffic at a lower cost. A higher CTR often leads to a lower cost per click (CPC), directly improving your ROAS. To improve CTR:

Add keywords directly into your ad titles
Use strong visuals, especially for Sponsored Brands
Highlight key product benefits in your ad headline
Test multiple versions to see what grabs attention

Improving ROAS requires smart adjustments. The better you manage your campaigns, the more value you’ll get from every dollar you spend.

Common Mistakes to Avoid

Making common mistakes in Amazon advertising can ruin the ROAS. It’s not the products, but the way the ads are run. We have covered some common errors that can quietly drain your budget.

One of the biggest issues is setting ROAS goals without knowing your breakeven point. Some sellers chase a random number instead of calculating what they need to stay profitable. Always start with your margins before scaling.

Another mistake is relying only on broad-match keywords. Broad matches can attract the wrong traffic, which means you have to spend more, as you’ll get fewer conversations. If you want better control over who sees your ads, use exact and phrase match types, especially when ROAS is your focus.

Neglecting negative keywords is a common mistake that leads to wasted spend. Without them, your ads appear for low-converting searches that drain your budget. Use the search term report to spot and block these regularly.

Sellers also run into trouble by bidding too high on keywords without enough data. Just because a term looks relevant doesn’t mean it will convert. Start with low bids and test performance, and only raise when the numbers back it up.

Even with the best campaigns, your ROAS will suffer if your product listing isn’t strong. Poor images, weak titles, or a lack of reviews will kill conversions after the click. Ads can’t fix a bad listing, and ROAS makes that obvious.

Many sellers also ignore the attribution window. Amazon may take a few days to report conversions from an ad click. You’ll miss the full picture if you pause or adjust too early. Give campaigns at least 7 to 14 days before judging performance.

The best campaigns are monitored, not left to run on autopilot. Check performance weekly using Campaign Manager and the Search Term Report. Track what’s working, fix what’s not, and build steady, profitable growth on Amazon.

What is the Difference Between ROI and ROAS?

Many Amazon sellers confuse between roi and ROAS, but they are two different things. Ross tells you how much revenue your ads generate for every dollar you spend. It focuses on the performance, not the overall profit.

For example, if you spent $100 and made $400 in attributed sales, your ROAS is 4.0. This number appears directly on the Amazon ad dashboard.

ROI (Return on Investment) looks at the bigger picture. It tells you how much profit you keep after covering all costs from product sourcing, shipping, fees, and ad spend.

If you spend $400 and earn $500 in profit, your ROI is 25%.

The main difference is that ROAS tracks revenue from ads, while ROI measures profit from your full investment. ROAS does not include the product or business costs, where ROI does.

Metric	What it Measures	Includes Product Cost	Common Use
ROAS	Revenue per ad dollar	No	Campaign level performance
ROI	Profit per total investment	Yes	Business level profitability

When you should use ROAS and when you should use ROI for Amazon ads:

Use ROAS when you’re managing and optimizing Amazon PPC campaigns. It helps track ad-level efficiency.
Use ROI when you’re reviewing your overall business or product performance. It shows if you’re truly profitable.

Frequently Asked Questions (FAQs)

ROAS can vary based on your product, budget, and strategy. These common questions will help you understand how it works, what to expect, and how to make better ad decisions.

How do I increase ROAS without cutting sales?

To increase ROAS without cutting sales, focus on high-converting keywords and optimize your product pages. Lower bids on underperforming terms, use negative keywords, and improve your listings to drive better results without reducing traffic.

How fast should I expect ROAS to improve?

ROAS improvement depends on your campaign changes and product performance. You may see early signs within 7 to 14 days. However, meaningful results often take 3 to 4 weeks as data stabilizes and optimizations take effect.

What’s the average ROAS for new Amazon sellers?

Most new Amazon sellers see a ROAS between 1.5 and 2.5. Early campaigns often cost more because listings are new, targeting needs work, and reviews are still low. ROAS improves as your offer gets stronger.

Is a higher ROAS always good?

A higher ROAS isn’t always better. It may mean your ads are performing well or spending too little and limiting growth. The goal is to stay profitable while reaching as many buyers as possible.

Can I run profitable ads with a low ROAS?

Yes, you can run profitable ads without low ROAS. A low ROAS can still be profitable if your product has high margins. What matters most is how much you keep after ad costs, not just the ROAS number itself.

Do ad placements affect ROAS?

Yes, ad placements can affect ROAS. Top-of-search placements usually convert better but cost more. Lower placements may be cheaper but bring fewer sales. Testing different placements helps find the best balance between cost and performance.

Brand’s Bro Will Help Improve Your Amazon ROAS

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