[Profit Calculation] Amazon's True Profit Calculation
Amazon FBA "Profit Calculation"
Amazon FBA profit calculation is,
"Selling Price"
minus
---------------・Cost of Goods
(Purchase Price)・Referral Fee
(up to 15% + consumption tax)・Fulfillment Fee
(depends on size)・Monthly Storage Fee
(depends on size)
--------------- equals Sales Profit
.Yes, I think many people think so.
General information says so, and even the
official Amazon Profit Calculator calculates it that way.
However, that is wrong.
Especially in private label sales, it is a huge mistake.
Amazon FBA "True Profit Calculation"
So, what is the true profit calculation?
To put it bluntly,
"Selling Price" minus
・Cost of Goods (Purchase Price)
・Referral Fee (up to 15% + consumption tax)
・Fulfillment Fee (depends on size)
・Monthly Storage Fee (depends on size)
---------------
・Return fees (Return to yourself)
・Refund fees (Refund to buyer)
・Inbound shipping fees (Using Partnered Carrier)
・Long-term storage fees (Storage beyond the specified period)
---------------
・Advertising costs (Sponsored Products ads)
---------------
What remains after deducting these is the "true profit".
"Whoa, that's too detailed! Hey!"
You might think that, but these costs really add up. In fact, the
ratio of monthly fees for my entire account looks like the chart below.
Among these, the biggest ones are "advertising costs" and "
inventory storage fees" which also really add up. Believe it or not, combined they take up "
about 15%" in fees.
Especially in
private catalog sales, where advertising costs are unavoidable
, if you don't include these in your calculations,
"I'm making a profit" (shaky voice)
there is no way you can say that.
That said,
calculating advertising costs and storage fees individually for each product is a daunting task.
(Oh man, I wish someone would calculate the net profit for each product)
If you thought that!
Actually,
Amazon Seller Central has a feature that solves that in one go. (Thank you, Amazon!)
"SKU Fee" data
That one-shot solution feature is... "SKU Fees". It's in a very
hard-to-find place and perhaps because of its very
confusing name, it is not noticeable at all.
However, it is very useful data that covers almost everything regarding
status by product.
So, you might ask, "Where are those 'SKU expenses' located?" Well, they are actually in
a place everyone always looks at.
It's right here. ▼
Yes. As the name suggests, the "
SKU expenses" are located under the "SKU" section.
(Who would ever click on something like that!)
While thinking that to yourself, click on "SKU" and data like the following ▼ will be displayed.
Very detailed data, which could also be called a "performance report by product," will be displayed.
And, if you scroll down a little...
Yes, there it is! The rumored SKU expenses! In this image, on the "
right side (past 30 days)" there is
( I wish someone would do this for me )
the "true profit calculation" data that I have always wanted.
Here, the advertising costs, storage fees, and
other fees are included to show the total profit. Also, if you click on "
per unit" at the top...
A great tool that calculates the net profit per item. (With a final profit of 7.5%, it's a decent product)
SKU expenses that also allow for "cost management"
By the way, to have your net profit calculated, you need to
click the "Total non-Amazon expenses" "Edit" button and
enter the product cost (purchase price).
*Once entered, it is saved, so you can also perform cost management here.
No, no, Pu-san.
I handle over 100 products.
I can't look at data like this one by one.
Some of you might have thought that.
For those of you, Amazon provides list data.
SKU Fee Report
That list data is...
the "SKU Fee Report"!
It's exactly what it sounds like.
Now, as for where the SKU Fee Report is located, it is
below the graph you were looking at earlier.
No, it's still hard to understand!
Since this link might change depending on the time, correctly, it is:
It is good to remember this.
The procedure for generating the report after clicking is:
・Select aggregation level ( period, etc.)
・Report settings ( data type )
There are these, but anyway,
set a period like 30 days and check all the boxes
and press "Generate Report" to finish.
Wait a little while and the report will be generated, so please download it.
Data like this can be downloaded.
Phew...
(Quietly closes tab)
No matter how much it is important data, though,
"I can't stand looking at this! Stupid! Stupid!"
Most people would probably think that.
That is exactly whenData Mania Poocomes into play.
Free analysis tool
Poo currently manages products using a tool that imports data such as SKU expenses to analyze Amazon products,
"RepeatChecker"
is what I use to manage products.
With this, you can see:
・Inventory cost
・True profit (net profit) ・
Days until out of stock andrestock quantity・
Number of visitors andpurchase conversion rate
And,
"what actions to take for each product"
becomesobvious at a glance.
ThisRepeatChecker will be
released for free to Raijin users (planned), and
we also plan togive it as a participation gift to those who attend the
product sales LIVE "Raijin-kai" at the end of this month (Saturday, 5/25 at 21:00)!
Honestly, if you includeadvertising costs andstorage fees, you might think,
I don't know if I'm really making a profit!
If you are not confident, please
definitely make use of thisRepeatChecker!
Next episode preview
And next time...
"Price adjustments for private label products"
I will tell you about this.
Are you adjusting the prices of your private label products because
(they just aren't selling)?
Actually,
product prices can not only be lowered, but there are also
products that can be raised.
*This is also immediately obvious with RepeatChecker
Well then, look forward to the next time!