Velocity Sellers, Inc

Velocity sellers logo
What should my Amazon PPC Budget Be?
April 17, 2019

Setting Your Amazon PPC Budget

We often get asked by clients what their Amazon PPC budget should be. The answer to that all depends on your overall sales goal. You should start by asking yourself; what is my overall Amazon sales goal? You can set that goal for any period you wish, next month, the quarter, the next six months.

Once you’ve set your overall sales goal your next question is: how much of those sales will come from PPC? The best way to answer this is to look at current or historical Amazon PPC data for your account. Based on historical performance you can set a number by using the most recent 60 days of PPC sales divided by your total sales during that same period. If you want to keep it the same then utilize the number you calculate. Or if you want to rely more on PPC then set it higher, or if you want to rely less on PPC you can lower it. If you don’t have any historical data then we suggest you start with 35%.

Now, you need to specify how much you want to spend on advertising per sale, i.e what should my Average [PPC] Costs of Sale be? How much do you want to spend on a PPC sale that leaves you with an acceptable profit margin after all your Amazon fees and your costs? Most clients set this number between 10% and 25%. The more you can allocate to your ACoS, the more competitive you can be in PPC advertising.

Calculating Your Budget: Start By Answering 3 Questions

So you must start by answering these three questions:

  1. What is my overall Amazon sales goal?
  2. How much of those sales will come from PPC?
  3. What should my AACoS be?
What should my Amazon PPC Budget Be?

Putting It All Together: Calculating You PPC Budget

Once you have these 3 numbers you can calculate your budget as follows: Some Notes:

  • If you set your sales goal to be quarterly for example, the your final PPC budget will be for the entire quarter and should be allocated accordingly.
  • The examples and recommended numbers included in this article are specific to Sponsored Products advertising in Seller Central. Your % of sales from PPC and target ACoS for Headline Ads will likely be very different than for Sponsored Products ads.
  • Also, the example is based on Retail ACoS. If you are a Vendor Central seller then the formulas are still applicable if you apply them to Shipped COGS numbers but you will need to make an additional calculation to set a Retail ACoS to work with day to day since Amazons tools report PPC data in terms of Retail ACoS.
Leave a Reply

Your email address will not be published.

Amazon Managed Services

With over $1B in revenue driven and 60+ employees with specialized knowledge of the Amazon ecosystem, we are the experts in this space.

Peter Sims

Sales Executive & Brand Evangelist

Pete has been on Amazon for 3 years now and is very happy to found a home at Velocity Sellers. In his free time Pete is an avid hiker, runner, and bowler. He also enjoys reading any book he can get his hands on and making some tea to go along with it.

Arlind Hoxha

Creative Manager

As the Creative Manager at Velocity Sellers, Arlind leads with expertise honed over many years in creative agencies. He brings a wealth of experience guiding designers and excelling in ecommerce-focused endeavors. Beyond his professional prowess, Arlind is an avid gamer, seamlessly blending creativity and strategic thinking.

Florence Palahang

Administrative Manager

Holding a BS in Accountancy from Davao City and boasting seven years of experience as a Virtual Assistant, Florence has established herself as a valuable asset. With a background spanning 95 clients worldwide, she has found her niche at Velocity Sellers, focusing on Amazon marketplaces. Beyond work, Florence enjoys reading, crochet, and baking. Her collection of plants adds vibrancy to her mornings, and witnessing her family enjoy the outcomes of her efforts brings contentment to her universe.

Kiley Forche


An MBA graduate specializing in Finance, boasting 11+ years of expertise. Joined Velocity Seller in 2018, contributing to our growth. Outside work, treasures family time, exploring new destinations, and passionately supports Buckeye Football

Miljan Milev

Sr. Project Manager

Seasoned project manager adept in data and e-commerce projects, collaborating globally. Outside work, finds joy in traveling, cherishing moments with family and friends.

Camilla Messmer

Sr. Project Manager

University of Arkansas grad in Supply Chain Management, excelling in eCommerce project management. Enjoys baking, travel, and writing, adding a touch of creativity to every endeavor.

Zach Taylor

Director of Logistics

Zach, a graduate with a Sociology and Environmental Science degree from the University of Montana, has consistently found himself drawn to running businesses and improving business systems, logistics, and operations throughout his professional journey. In his free time, he enjoys cycling, running, and spending quality moments in the mountains with his family.

Chris Prall

Director of Advertising

A former chef turned Geomatics graduate. While studying, he delved into managing PPC campaigns for Amazon agencies and e-commerce clients, uncovering a passion for data-driven strategies. A maestro in crafting successful PPC campaigns, he’s fueled by driving client growth, from startups to 8-figure brands. Beyond work, Chris savors cooking, vinyl collecting, camping, and embracing the great outdoors

Steffanie Morrison

Director of Sales, Sr Marketplace Analyst

Steffanie brings a rich e-commerce background since 2013, selling products and advising brands. An analytical mind with degrees from Northern Illinois University and the University of Hartford, she resides in New Hampshire, relishing family moments, travel, and outdoor adventures like hiking and skiing with her husband and kids.

Eric Peterson

Director of Brand Onboarding

Master’s in marketing, film degree from Minnesota State University-Moorhead. At Velocity Sellers, he crafts brand value, excels in client service, and loves problem-solving. An advocate for animal welfare, he enjoys cooking, classic movies, and time with his dogs.

James Dee

Director of Brand Management

Over 20 years in e-commerce mastery, specializing in Amazon. Proven brand builder and business owner. Outside the office, a proud parent to five, including a Division 1 soccer player. Enjoys family time, the outdoors, and all things soccer.

Lisa Zajdel

Executive Director

Results-Driven Executive Director. With two decades of expertise in merchandising and retail, including a successful tenure as Kohl’s Private Label Buyer & E-commerce Manager, Lisa brings over 14 years of invaluable experience on Amazon. Her dedication to delivering results is unparalleled, ensuring a strategic, seasoned approach to optimizing your business for success.

Andrew Warner


Andrew Warner, Velocity Sellers’ CFO, occupies a central role in our financial triumph. His sharp fiscal oversight guarantees our operational efficiency, ultimately empowering our team to deliver unparalleled services to a global clientele, consistently setting high standards in the industry.

Jake Schwarzbaum​


As the Co-Founder and CEO of Velocity Sellers, Jake Schwarzbaum co-launched the company while supporting his father, Nathan, during leukemia treatments. His dedication to helping brands succeed on Amazon, without relying on automated systems, drives Velocity Sellers’ commitment to excellence.


How To Become Unstoppable On Amazon

This field is for validation purposes and should be left unchanged.