Breakeven ACoS is the maximum ACoS you can afford in order to break even. In Nozzle, you will see a breakeven ACoS associated with a timeframe such as on the first purchase or after 6 months.

In the above graphic, if you want to break even on the first purchase, your breakeven AcoS is 62%. However if you can wait, say, 6 months, that increases to 99% as some of those customers will have bought again, meaning you have more “breathing room” in the AcoS.

Breakeven AcoS should not be confused with a target AcoS - you don’t want to just break even - you want to make a profit!

The target ACoS is a personal decision each seller needs to make given the circumstances of the business (cash flow, margins, etc.). We regularly see the breakeven ACoS being adjusted by 15% - 25% to get to a target ACoS for instance.