Help on calculating profit
Using a revenue calculator I was seeing if I could make profit on this product but seems like im doing something wrong. Im purchasing 50 units for $3.75 per unit and listing on amazon for $8.41 per unit, not sure of box dimensions but the product is a 3 pack note book so not that that heavy. After all the fees are accounted for it says I would have a negative profit margin. Does this seem right or maybe am I entering something wrong?
Help on calculating profit
Using a revenue calculator I was seeing if I could make profit on this product but seems like im doing something wrong. Im purchasing 50 units for $3.75 per unit and listing on amazon for $8.41 per unit, not sure of box dimensions but the product is a 3 pack note book so not that that heavy. After all the fees are accounted for it says I would have a negative profit margin. Does this seem right or maybe am I entering something wrong?
11 replies
Seller_kIukTwdhvntAp
The calculation is probably correct. Unless these are only a couple pages a three pack with packaging is probably closer to a pound than you think.
That makes shipping them yourself close to $5 for postage. Over $4 even if it's a couple miles away.
Based on your other example about selling Nike socks I would strongly suggest two things --
Seller U NOW
https://sell.amazon.com/learn
Vacation Mode NOW
You are going to get suspended before you start unless you get brand permission for anything!
Seller_nRFmxiQg4EGrw
Be aware that "approval" from Amazon is meaningless if you don't have permission from the brand and the brand doesn't want you selling their stuff on Amazon.
If you're looking to get "up to" 5-10% margins, you need a different plan. That small of a margin is unlikely to yield a profit at the end after you factor in returns, lost product, and overhead, unless you have a HUGE volume (in which case, have your staff accountant run the numbers).
Danny_Amazon
Howdy @Seller_VrAqGtAIyMI9H- and thanks for seeking some guidance around this here on the seller forums. Danny here with hopefully some helpful resources for you!
Here is the Revenue calculator tool from Amazon, which includes most fees and can be used against a single products or many, but it's important to note there are elements the tool cannot factor in. Please do take a moment to read through the full details here!
After taking a look, do let me know if you have any further questions on the topic that I can help address here on the forums.
Thanks in advance!
Danny
