AMZADVANTAGE / OPERATOR TOOLS

Know what your margin leaves for ads.

Model the ad allowance behind an ACoS target. Keep the costs, assumptions and sales denominator visible.

Fictional example loaded. Replace every number with your own verified inputs. This is a contribution scenario, not a fee estimator or a promise of profit.

1. Set your per-unit assumptions

Display currencyUse one currency throughout.

Selling priceBefore discounts/refunds; exclude pass-through tax.

Discount per unitPromotion reduction not already reflected in price.

Expected refunded revenueAverage revenue lost to refunds per originally sold unit.

Reported Ads sales basis per unitMust match the sales denominator of the ACoS you compare.

Landed product costDo not include inbound again if already in this number.

Referral / selling feesActual expected per-unit fees, not a generic percentage.

Fulfillment costFBA fee or merchant shipping/pick-pack.

Inbound freight / placementPer-unit allocation not already in product cost.

Storage allocationExpected storage per sold unit.

Extra returns / removal costExtra expense, excluding refunded revenue entered above.

Other variable costsCoupons, packaging or other costs not already counted.

Overhead allocationOptional allocation; enter 0 to exclude explicitly.

Desired retained contributionPer unit after ads and the included costs.

Observed ACoS (%)Optional. Same product mix, sales basis and reporting scope.

Blank required values are not treated as zero. Inputs stay in this local page; no login, account connection, network call or storage is used by this file.

2. Review the allowance

A positive allowance is not a recommendation to spend it. ACoS compares spend with attributed sales; it does not establish incremental profit.

3. Check the model before acting

Pre-ad contribution = selling price - discounts - expected refunded revenue - all included costs.
Modeled break-even ACoS = positive pre-ad contribution / matched Ads sales basis x 100.
Target ad allowance = pre-ad contribution - desired retained contribution.
Target ACoS = positive target ad allowance / matched Ads sales basis x 100.

Include refunds, extra return costs, storage and other costs where relevant. Do not double-count them.
Keep the Ads denominator aligned to the same product mix, period and reporting definition. Refunded revenue and reported Ads sales may differ.
No fees are retrieved. Verify current costs in Seller Central. Zero overhead means company overhead is excluded.
Not modeled: income tax, cash flow, financing, lifetime value, organic halo or incrementality. No bids, budgets or listings are changed.

Official references: Amazon Ads metric definitions · Amazon fee-estimation tools.