How to accurately calculate your Amazon profit?

How to accurately calculate your Amazon profit?

Sales Analytics

Can you clearly know the daily profit of your Amazon business?Every seller knows that in order to succeed, you need a good profit margin on Amazon. However, there are a lot of sellers who reflect they can not figure out clearly the profit of their Amazon business.

As we all know, profit is related to many factors, such as storage and fulfillment costs, transportation costs, cost of goods sold (cost of goods sold), operating expenses, advertising expenses, costs related to returns, and so on. In general, some sellers process the sales data on a monthly basis, but in fact, if you want to have a clearer understanding of your costs and whether you can make a profit, you need to pay attention to profit in real-time.

Why you should know your profit in real-time?

1. Better optimize the listing

If you know your profit in real-time, you can know whether your product is in a good status, and you can make a clear decision whether to adjust your product price, ads budget,t and others.

2. Avoid uncontrollable losses

If you launched a new product with a low profit or no profit, and you are not clear that, it may cause massive loss. Know the product profit clearly, you can adjust your strategy in time for uncontrollable losses.

If a single product has a large sales volume and high profit but fails to replenish the goods in time because. The real-time profits can make you how important the product is and you can avoid such incidents.

know your profit in real-time

How to calculate the profit?

True Profit = Total Sales-Total Cost

Among them, the sales amount is easy to know, however, there are a lot of costs you have to consider total costs. Including:

  • Cost of Goods Sold (COGS)
  • FBA fees that Amazon collects from sellers. These include fees for services like shipping, pick & pack, order handling, and storage.
  • Costs associated with being an Amazon Sponsored Product
  • Amazon seller’s fees, which Amazon charges per product, depending on the business category. Usually, this fee is about 15%.
  • Other marketing costs, like promotions or Amazon advertising, spend

How to find profit on seller central?

You need to collect various reports from Seller Central to calculate gross profit. Once you access this data, then you can use it to make calculations.

Download report:

Although you can do it by yourself, however, you have to spend a lot of time on it. Downloading, manipulating, and refining these reports isn’t scalable in the long term, and you will likely make errors along the way. Not to worry though…

Captain BI helps you simplify it.

Captain BI helps you to calculate the profit.

1. Crawl all detailed costs

To resolve the complicated problems of Amazon’s income and cost, Captain BI integrates the detailed costs and incomes for you, you can check all of them clearly in one place.

Incomes: sales income, refund order income, FBA reimbursement income

Costs: Cost of Goods Sold, FBA fees, Sponsored Product cost, promotions, and so on.

2. Clearly check the profit for each product

You can easily check the profit for each product, hence you can adjust your strategies in time in case of losses. In addition, you can clearly understand what is disproportionately eating into your profit margins and make critical decisions immediately.

 calculate profit by each product

3. Support you to add other costs

Although we have counted costs as many as possible, we still provide customers with an opportunity to add their additional costs. You don’t need to anywhere else, just manage your all fees in one place.

 calculate profit additional cost

4. Easy to check all your Amazon marketplaces

Captain BI can support 17 marketplaces. Don’t worry about your multiple accounts, you can manage and know all the details for your all accounts in one place.

calculate profit 17 marketplace support

How to maintain a good profit?

  • Include Amazon’s sales expenses in your budget

Although shipping costs are included in professional seller fees, the costs of order fulfillment, warehousing, and other optional services are not included.

  • Find a suitable supplier

For some suppliers, they require you to have a minimum order quantity, in this way, the product may need to pay high costs.

But if you sell through inventory, you can benefit from low-profit margins because of lower unit costs. If the seller buys in bulk or from a wholesaler, these products have already been produced, which means they are not private labels but maybe from well-known brands.

  • Establish a Amazon inventory management strategy

It will help sellers with any loopholes or shortages in the supply chain. In addition, if the seller has no demand or strategy to prevent inventory backlog, then your capital will be occupied and it will prevent you from making profits.

  • Better know your best-selling products

You have to know your best-selling products because these products can drive profitability. Make sure these products always have inventory, but if you can’t replenish them in time, you’d better increase the price as much as possible to support profitability.

Calculate Your Profit Now

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