Our team performed a meta-analysis of Amazon seller customer acquisition cost (CAC), taking in data from over 450 Amazon seller accounts across the US, UK, and Canada, as well as proprietary surveys and Amazon Ads campaign benchmarks.
As of Q1 2025, the average CAC for Amazon sellers ranges from $18.90 to $71.60, depending on category, fulfillment method, advertising strategy, and product pricing tier. We’ve segmented the data below.
Methodology:
We analyzed performance data from 453 active Amazon seller accounts between January 2023 and December 2024. Sources included Amazon Seller Central campaign dashboards, third-party analytics from Helium 10 and Jungle Scout, proprietary CAC benchmark reports from Focus Digital (2024), and interviews with FBA and FBM operators. We calculated CAC as:
All CAC figures reflect new-to-brand purchasers, excluding repeat orders. Values are segmented by product category, fulfillment model (FBA vs FBM), traffic source, and advertising strategy. Organic CAC estimates derive from attributed purchases via Amazon SEO, product rank, and Brand Store performance, while paid CAC derives from Sponsored Product, Sponsored Brand, and off-Amazon PPC (Meta, Google) campaigns.
Context: Why Amazon Seller CAC Varies So Widely
Unlike direct-to-consumer brands, Amazon sellers operate in a closed-loop marketplace where customer trust is built into the platform—but also where competition is fierce and ad costs are escalating. In 2024, the average CPC for Sponsored Products rose by 14% YoY, with ACoS (Advertising Cost of Sale) tightening average margins. Meanwhile, organic rankings require increasing investment in reviews, imagery, and listing optimization.
The CAC for Amazon sellers is especially sensitive to three variables:
- Category Demand Elasticity (necessity vs. discretionary items)
- Fulfillment Model (FBA provides higher conversion but incurs storage and referral fees)
- Brand Awareness (New sellers pay more per conversion)
The table below maps the average CAC by product category.
CAC by Amazon Product Category
| Category | Average CAC (FBA) | Average CAC (FBM) |
|---|---|---|
| Health & Personal Care | $41.75 | $52.30 |
| Home & Kitchen | $36.20 | $44.10 |
| Electronics | $53.90 | $71.60 |
| Fashion & Apparel | $27.60 | $33.20 |
| Books & Media | $18.90 | $25.40 |
| Tools & Automotive | $45.15 | $58.30 |
| Pet Supplies | $31.70 | $39.25 |
| Toys & Games | $29.80 | $38.10 |
Key Insight:
FBA sellers consistently achieve lower CACs due to Amazon Prime eligibility, which boosts conversion by ~24% on average across categories. The widest gap appears in Electronics and Tools due to buyer sensitivity to fulfillment speed and return policies.
Paid vs. Organic Amazon CAC by Traffic Source
The chart below compares CAC across core traffic channels.
Key Insight:
Organic Amazon SEO delivers the lowest CAC due to high purchase intent and zero marginal cost. However, it has the longest ramp-up time (~4–6 months). Paid ads like Sponsored Products yield faster results but at a higher CAC. External ads (Meta, Google) show the highest CAC due to weaker buyer intent and tracking limitations.
CAC Benchmarks by Product Price Tier
| Product Price Tier | Avg CAC | CAC as % of AOV |
|---|---|---|
| <$25 | $22.60 | 90.4% |
| $25–$50 | $27.10 | 67.1% |
| $50–$100 | $33.85 | 45.2% |
| $100+ | $44.20 | 29.6% |
Key Insight:
Low-ticket products often have CACs that consume up to 90% of AOV. Sellers in this segment must rely heavily on repeat purchase strategies or bundling to drive margin. Premium-priced goods provide greater CAC efficiency but require higher upfront trust signals (e.g., reviews, branding, rich media).
CAC by Seller Type (New vs Established Brands)
| Seller Type | Avg CAC | First-Time Customer Rate |
|---|---|---|
| New Private Label Seller | $51.30 | 88% |
| Established Brand | $29.70 | 61% |
| Aggregator-Owned Brand | $34.80 | 72% |
Key Insight:
New sellers pay a premium for initial traction. This reflects lower review counts and less optimized listings. Brand equity reduces CAC over time as Amazon’s algorithm prioritizes relevance and conversion history. Aggregators perform better than new sellers due to operations and ad efficiency but still lag behind legacy brands with long review histories.
CAC Trends Over Time (2022–2025)
| Year | Avg CAC (All Sellers) | % Change YoY |
|---|---|---|
| 2022 | $28.10 | N/A |
| 2023 | $34.75 | +23.7% |
| 2024 | $39.20 | +12.8% |
| 2025 | $42.90 (projected) | +9.5% |
Key Insight:
The CAC trendline has climbed nearly 53% since 2022. Intensifying ad competition and saturation in common categories are driving this inflation. The stabilization in YoY growth suggests sellers are adapting via better creatives, smarter bidding strategies, and off-Amazon brand building.
Optimization Recommendations
- Invest in Listing Quality: A+ Content, 3D renderings, and video can lift conversion rates by 15–30%, lowering effective CAC.
- Leverage Long-Tail Keywords: Focus on 3+ word search terms with lower CPCs and high intent (e.g., “organic turmeric powder for smoothies”).
- Use External Traffic Only for Retargeting or Product Launches: Meta and Google ads yield ROI mainly during launch windows or for existing warm audiences.
- Bundle Low-Margin Products: Combining low-ticket SKUs into bundles increases AOV, enabling higher CAC thresholds.
- Amazon DSP for Scaling: Once profitable, consider Amazon DSP for remarketing to drive customer retention at a lower CAC.