ROI in Amazon Ads for ecommerce: how to measure and optimize it
Most Amazon Ads advertisers look at the ROAS their dashboard reports and think the campaign is profitable. But without factoring in your product margin, that number means nothing.
Calculate my Amazon Ads ROIHow to calculate ROI for Amazon Ads
The formula is the same as for any platform: ROI = ((Revenue × Gross margin) − Ad spend) ÷ Ad spend × 100. What changes is how you get reliable data from the platform.
Attribution note for Amazon Ads
Amazon reports ACoS not ROAS. ACoS does not deduct referral fees (8-15%) or FBA costs, which significantly reduces real margin.
Key steps to measure ROI accurately
Get actual revenue from your store backend (Shopify, WooCommerce) filtered by the traffic source — not just the platform dashboard.
Use your real gross margin for the products sold — not an average across your entire catalog.
Enter these numbers into the ROI calculator to get your real profitability picture.
ROI formula reminder
ROI = ((Revenue × Margin%) − Ad spend) ÷ Ad spend × 100