ACOS + VAT. ACOS for Amazon KDP and POD Products. Adding Amazon Advertising VAT or Sales Tax.
No Affiliate Links, No Courses! Just my honest and personal opinion on all things self-publishing 🤙
Link to previous video: Easy ACOS: https://stephenpeel.uk/easyacos
ACOS is a tricky one to understand for many, so I have created this video with the hope I can explain it adequately. There is also an Excel Spreadsheet used in the video, which I have uploaded to the Facebook Group (in the links below). You can download it from there and us that calculator to assist you.
🧮 How to work out your ACOS Break Even without the Excel Calculator:
ACOS is simply a percentage of the retail price of the product.
Calculation example in formulas: Product Royalty (example: 1.50), divided by the Retail Price (example: 5.99) x 100% = ACOS 25.04%. So that's: 1.50/5.99x100%
Formula: =sum((1.50/5.99)*100%) If adding this to a spreadsheet, you need to apply the cell references. For example =sum((H12/G12)*100%) If you wish to add a little buffer as I have done: =sum((H12/G12)*100%)-2%
🧮 How to work out your ACOS with Ad Spend
When viewing your advertisement costs and ACOS, you will see the ACOS in percentage. This is one of the books I started advertising this week. It's only a simple and cheap book, but it clearly shows how things work.
Based on 4 of the same book sold in one advertisement: Product Royalty 1.29, divided by the Retail Price of 5.99, x 100% = ACOS 21.54%.
In that above calculation, I have determined my maximum ACOS spend percentage for each book, anything over 21.54%, and I am at a loss; anything under and I am in profit.
I have sold 4 books for 19.96 in a single advertisement. I need to work out what my ACOS is now based on what I have spent on advertising.
In my Amazon Advertising Campaign, I see that my Spend is 1.45, Orders 4, Sales 19.96, ACOS 7.26%. But how did Amazon come to arrive at 7.26%? Well, it took the Ad Spend of 1.45 and divided it by the Sales of 19.96, giving the figure of 7.26. Then they simply ad the percentage symbol %. Of course, that's how I do it, no doubt Amazon's formulas are slightly different, but the result is the same.
🧮 Overall Advertising ACOS example:
In one current campaign, my retail sales are 71.86. My ACOS is 17.10%. The highest I can go without having to lose money, other than the royalties on the retail sales, is 26.05% ACOS. This last ACOS figure of 26.05% was calculated between all the books in that particular campaign. Anything below that ACOS is satisfactory; anything above it, and I will run at a loss. So, as my ACOS is just 17.10%, I am in profit. The lower that ACOS is, the more profit I make.
🧮 VAT Calculation to Advertising Costs
Percentage of VAT calculating:
=sum((ad spend)*(20%))+ad spend
The formula in the calculator is: =sum(j10*n10)+j10
Put simply: 1x20%+1= 1.2
Revised ACOS to include the VAT rise:
The cost of advertising including VAT, divided by the Retail Price, times 100
The formula in the Calculator is: =sum(o10/e10)*100
Put simply: 1.20 divided by 10.00, x 100
Support the Channel Through:
📺 Subscribe to the channel:
https://stephenpeel.uk/subscribe
☕ Treat me to a coffee:
https://stephenpeel.uk/coffee
👕 My Shirts:
https://stephenpeel.uk/myshirts
🙏 PayPal Donate:
thankyou@stephenpeel.co.uk
Resources: I'm not affiliated, so click away 👍
📘 Join the Facebook Group:
https://stephenpeel.uk/facebookgroup
💰 Amazon Royalties Calculator:
https://stephenpeel.uk/royaltiescalculator
PDF Joiner:
https://stephenpeel.uk/pdfjoiner
PDF to Jpeg:
https://stephenpeel.uk/pdf2jpg
🕮 KDP Cover Size Calculator:
https://stephenpeel.uk/coversizecalculator
HTML Text Viewer:
https://stephenpeel.uk/htmltextviewer
HTML Colour Picker:
https://stephenpeel.uk/htmlcolourpicker
😀 Emojipedia:
https://stephenpeel.uk/emojis
🙏 Request More Categories:
https://stephenpeel.uk/extracategories
📖 Amazon KDP Margin Sizes:
https://stephenpeel.uk/bookmarginsizes
🤖 AI Images at Lexica:
https://lexica.art/
🗺️ The Urge - Travel and Adventure - 0% Royalties:
https://stephenpeel.uk/theurge
_____________________________________
Canva, KDP, Amazon KDP, Kindle Direct Publishing, Stephen Peel, Low Content Books, No Content Books, Self-Publishing, Niche, Print on Demand, Passive Income, Digital Nomad, Work Remotely, Income Reports, KDP Books, KDP Interiors, KDP Templates, Make Money Online, eBook, A+ Content, Children’s Books, Book Promotion, Books on Amazon, Book Cover, Kids Books, Medium Content Books, Long Form Books, Writing Community, How to Write, Write a Book, Novel, Nonfiction, Romance Novel, Writing Tips,, #ACOS #advertisingvat #vatonads
-
LIVE
Matt Kohrs
1 hour agoStocks Are EXPLODING HIGHER, Nvidia is King & GameStop is Falling
1,804 watching -
1:28:50
Graham Allen
3 hours agoMega Church Pastor Forced to RESIGN! + Ten Commandments Back in Schools🔥
6.31K44 -
LIVE
Rethinking the Dollar
28 minutes agoGOP WANTS $500 BILL TO HONOR TRUMP | SIGNS OF GREATER INFLATION TO COME? | Morning Check-In w/ Mike
559 watching -
1:36:11
The Podcast of the Lotus Eaters
5 hours agoThe Podcast of the Lotus Eaters #941
28.7K15 -
1:17:47
jeffahern
2 hours agoThursday Thrash With Jeff Ahern (6am Pacific)
4.41K3 -
2:05:19
AP4Liberty
3 hours agoBorder Wars Breakout Between Kansas and Missouri... Again!
5.06K -
19:28
Stephen Gardner
8 hours ago🔴BREAKING: Biden’s RECKLESS new scheme fails with the PEOPLE!!
24.3K75 -
1:03:16
Kimberly Guilfoyle
2 days agoSlow Joe Hits a New Low, Plus New Case of Illegal Immigrant Crime, Live with Karoline Leavitt & Sen Tommy Tuberville | Ep. 134
93.1K90 -
2:35
Random Food
5 days ago $0.32 earnedMixed Berry with Lemon Cream Biscuits
26.4K4 -
59:15
Son of a Boy Dad
4 hours agoNew York vs. LA | Son of a Boy Dad #210
15.4K3