As an Amazon FBA seller, how can we not know the revenue? Then how to use Amazon FBA Revenue Calculator to estimate potential profit, which is convenient for us to make smarter selling strategy?
Application Scenarios of Amazon FBA revenue calculator
Profitability Forecast
Help sellers calculate the profitability of each product, based on the profitability of the predictive analysis, so as to arrive at the product’s potential future profits, to develop a more informed sales strategy.
Cost Control
The calculator can calculate the total cost of each product based on FBA distribution costs, inventory costs and other factors, so that sellers can clearly understand the cost of their products in order to better control costs and improve profitability.
Comparison of product selection
Helps sellers to compare the profitability of different products so that they can choose more profitable products. Sellers can predict and compare the profitability of different products, and then determine which product has more potential profit margin.
FBA revenue calculator
If you want to know more details about FBA revenue calculator, you can click on this article:
Examples of how to use the FBA revenue calculator
A cherry pitter, the price of the same source on 1688 is 7 dollars.
Product weight: 140g, color box 103g, total weight 243g
Product specifications: 20.5 * 8 * 3.8cm
Color box specifications: 21 * 8.5 * 4cm
Merchandise revenue：Merchandise selling price: $12.8；Charge buyer’s shipping fee: 0
If you don’t want to just read these text interpretations, you can click on the video below to help you understand more quickly about the FBA revenue calculator：
Commodity cost
Purchase cost
￥7（2-99pcs)
￥6.8(100-4999pcs)
¥ 6.5 (≥ 5000)
Amazon FBA shipping costs:￥45/kg (airmail)
Amazon FBA for an average of 243g * 0.045 yuan = 10.9 yuan
Marketing cost
On-site advertising: advertising expenditure as a percentage of the selling price of the product, generally controlled at about 10%.
This value varies with the promotion cycle and product cycle, the new infusion period station advertising proportion will be higher, the middle of the natural flow of products with the rise of advertising expenditures decline, the late natural flow of mainly and has been stabilized, the proportion of advertising can be slowly reduced to less than 10%.
Other marketing costs: such as brush single, evaluation and station deals costs, generally controlled within 5%.
After-sales costs
Return rate: normally speaking, the product return rate try to keep below 10%.
The average rating of the product in the category is high, which means that consumers are satisfied with the market in general, the return rate is low, and the after-sales cost is low, so here we set the return rate at 2%.
The return rate is an invisible bomb that can easily eat up the profit of the product, so you need to check the return report regularly to analyze the reasons for the return and make timely improvements.
Amazon deduction
Amazon commission: 8%-15%, the system automatically populates according to different categories
FBA shipping fee: Amazon logistics basic service fee, the system calculates and auto-fills according to volume and weight
Sales volume
Target number of orders, you can select a reference blueprint to estimate sales.
We rated the target of 300 pieces, the final net profit of ¥ 6453, the profit margin of 24.06%
Of course, if the purchase quantity increases, the purchase cost decreases, or choose Amazon FBA shipping, there is more profit space.
Through the filling of the above data, the seller will be measured by the Amazon FBA revenue calculator, so as to better operate! Help sellers better understand the cost and profit of goods, develop smarter sales strategies and improve sales revenue.
If you want to know more about it, click on Amazon Seller Center.
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