## The ACoS Death Spiral
Many Amazon private label sellers scale their Pay-Per-Click (PPC) campaigns aggressively to rank on Page 1. They see massive revenue generation, but at the end of the month, their bank account is empty.
### FAQ
**Q: What is Break-Even ACoS?**
A: If your product sells for $100 and you have $40 of costs (manufacturing + FBA fees), you have $60 of profit left over. Therefore, you can afford to spend exactly 60% of your sales price on advertising ($60) to break even. Any ACoS above 60% burns cash on every single sale.