Amazon FBA Calculator EXPLAINED - How To Use It To Calculate Profit
Published on: December 2 2022 by Tatiana James
Amazon FBA Calculator EXPLAINED - How To Use It To Calculate Profit
Table of Contents
Amazon FBA Calculator EXPLAINED - How To Use It To Calculate Profit
| startTime | durationTime | text |
| 00:00:00 | 00:00:04 | hey everyone i'm tatiana and today i'm |
| 00:00:02 | 00:00:06 | going to be sharing with you how you can |
| 00:00:04 | 00:00:09 | calculate your profit margins |
| 00:00:06 | 00:00:11 | using the amazon fba revenue calculator |
| 00:00:09 | 00:00:12 | now you can get this calculator for free |
| 00:00:11 | 00:00:15 | by just google searching |
| 00:00:12 | 00:00:17 | amazon fba calculator or you can click |
| 00:00:15 | 00:00:19 | the link in the description box below |
| 00:00:17 | 00:00:20 | and so i'm going to be doing a screen |
| 00:00:19 | 00:00:22 | share to take you step by step to show |
| 00:00:20 | 00:00:23 | you exactly how to calculate your profit |
| 00:00:22 | 00:00:25 | margins |
| 00:00:23 | 00:00:26 | because this is very important this is a |
| 00:00:25 | 00:00:29 | fundamental step |
| 00:00:26 | 00:00:30 | in your process of picking a product to |
| 00:00:29 | 00:00:31 | sell on |
| 00:00:30 | 00:00:34 | amazon because if you pick a product |
| 00:00:31 | 00:00:35 | that has low profit margins |
| 00:00:34 | 00:00:37 | uh then you know you you're kind of |
| 00:00:35 | 00:00:39 | wasting your time because |
| 00:00:37 | 00:00:40 | a product that has 15 percent profit |
| 00:00:39 | 00:00:42 | margins |
| 00:00:40 | 00:00:44 | versus a product that has 30 profit |
| 00:00:42 | 00:00:45 | margins they're going to take you the |
| 00:00:44 | 00:00:47 | same amount of time |
| 00:00:45 | 00:00:49 | to get up there on amazon and start |
| 00:00:47 | 00:00:51 | selling so you might as well be |
| 00:00:49 | 00:00:52 | going for the product that has a higher |
| 00:00:51 | 00:00:55 | profit margin |
| 00:00:52 | 00:00:57 | now as a rule of thumb we want to aim |
| 00:00:55 | 00:01:00 | for a minimum of about 30 |
| 00:00:57 | 00:01:01 | profit margins uh the reason being is |
| 00:01:00 | 00:01:03 | because anything below that |
| 00:01:01 | 00:01:05 | it's just not necessarily worth the time |
| 00:01:03 | 00:01:06 | that you're gonna have to invest into |
| 00:01:05 | 00:01:08 | this product |
| 00:01:06 | 00:01:10 | uh and also it doesn't give you much |
| 00:01:08 | 00:01:12 | wiggle room so if you do want to do some |
| 00:01:10 | 00:01:15 | extra advertising promotions |
| 00:01:12 | 00:01:16 | giveaways or in the event where you have |
| 00:01:15 | 00:01:18 | to |
| 00:01:16 | 00:01:19 | reduce your price your selling price |
| 00:01:18 | 00:01:21 | then it doesn't give you much |
| 00:01:19 | 00:01:24 | flexibility when you're selling |
| 00:01:21 | 00:01:25 | a product that has a 15 margin so aim |
| 00:01:24 | 00:01:27 | for 30 |
| 00:01:25 | 00:01:28 | plus there are products out there you |
| 00:01:27 | 00:01:30 | will be able to find them |
| 00:01:28 | 00:01:32 | if you do the homework if you do the |
| 00:01:30 | 00:01:34 | research and we also want to aim for |
| 00:01:32 | 00:01:37 | about a hundred percent |
| 00:01:34 | 00:01:39 | return on investment so at least 100 |
| 00:01:37 | 00:01:40 | return on your investment i'm going to |
| 00:01:39 | 00:01:42 | dive more into that today |
| 00:01:40 | 00:01:44 | so without further ado i'm going to jump |
| 00:01:42 | 00:01:45 | behind my computer and start the screen |
| 00:01:44 | 00:01:47 | share so we can get started |
| 00:01:45 | 00:01:49 | all right so first thing you're going to |
| 00:01:47 | 00:01:51 | do is open up the amazon fba revenue |
| 00:01:49 | 00:01:53 | calculator which again i'll link in the |
| 00:01:51 | 00:01:54 | description box below or you can just |
| 00:01:53 | 00:01:55 | google search it |
| 00:01:54 | 00:01:58 | now it says find your product on |
| 00:01:55 | 00:01:59 | amazon.com so the first thing you want |
| 00:01:58 | 00:02:02 | to do is you want to go to amazon and |
| 00:01:59 | 00:02:05 | you want to find a similar product |
| 00:02:02 | 00:02:07 | of that which you wish to sell so if i |
| 00:02:05 | 00:02:09 | want to sell a hot air brush |
| 00:02:07 | 00:02:11 | then i'm going to go and find a product |
| 00:02:09 | 00:02:13 | on amazon that looks similar |
| 00:02:11 | 00:02:15 | to the brush that i'm planning on |
| 00:02:13 | 00:02:17 | sourcing and then selling |
| 00:02:15 | 00:02:18 | and then i'm going to go ahead and i'm |
| 00:02:17 | 00:02:22 | going to find the asin |
| 00:02:18 | 00:02:25 | number which i can find in the url or i |
| 00:02:22 | 00:02:27 | can scroll down to the product details |
| 00:02:25 | 00:02:29 | and i can find it there so under product |
| 00:02:27 | 00:02:31 | details i can see asin |
| 00:02:29 | 00:02:33 | and i can go ahead and copy this and i |
| 00:02:31 | 00:02:35 | can paste it in here |
| 00:02:33 | 00:02:36 | now the reason we're doing this is |
| 00:02:35 | 00:02:37 | because it's going to help us to |
| 00:02:36 | 00:02:39 | calculate |
| 00:02:37 | 00:02:41 | what are the fees associated with |
| 00:02:39 | 00:02:43 | selling this product on amazon |
| 00:02:41 | 00:02:45 | based on the weight of this product and |
| 00:02:43 | 00:02:47 | based on the dimensions |
| 00:02:45 | 00:02:49 | also based on the category that this |
| 00:02:47 | 00:02:52 | product is selling in |
| 00:02:49 | 00:02:53 | so over here uh because we are not going |
| 00:02:52 | 00:02:55 | to be fulfilling the product ourselves |
| 00:02:53 | 00:02:58 | we're going to be using amazon fba |
| 00:02:55 | 00:02:59 | we're going to be using this uh this |
| 00:02:58 | 00:03:01 | section over here |
| 00:02:59 | 00:03:02 | so the first thing we want to input is |
| 00:03:01 | 00:03:04 | how much we think that we're going to |
| 00:03:02 | 00:03:06 | sell this product at what is the price |
| 00:03:04 | 00:03:07 | that we wish to sell this product on |
| 00:03:06 | 00:03:08 | amazon |
| 00:03:07 | 00:03:10 | now you don't just get to pick and |
| 00:03:08 | 00:03:12 | choose what price you do have to look at |
| 00:03:10 | 00:03:14 | what the market is telling us |
| 00:03:12 | 00:03:16 | looking at the data so what you can do |
| 00:03:14 | 00:03:18 | here is you can search for |
| 00:03:16 | 00:03:20 | the main keyword if the main keyword in |
| 00:03:18 | 00:03:22 | this case is hot air brush |
| 00:03:20 | 00:03:24 | click search and then you have all these |
| 00:03:22 | 00:03:28 | search results you could manually |
| 00:03:24 | 00:03:29 | add up like the first maybe 10 or 20 |
| 00:03:28 | 00:03:31 | listings |
| 00:03:29 | 00:03:32 | and add up the selling price and then |
| 00:03:31 | 00:03:35 | divided by |
| 00:03:32 | 00:03:37 | 10 or 20 to get the average price of |
| 00:03:35 | 00:03:39 | what the average item is selling for |
| 00:03:37 | 00:03:41 | or you could just visually look and just |
| 00:03:39 | 00:03:43 | get an idea yourself |
| 00:03:41 | 00:03:44 | or you could use a tool like jungle |
| 00:03:43 | 00:03:47 | scout |
| 00:03:44 | 00:03:48 | that can do some of the math for you so |
| 00:03:47 | 00:03:52 | in this case it's telling me the average |
| 00:03:48 | 00:03:56 | price is 41.72 cents |
| 00:03:52 | 00:03:58 | wow look at this so this revlon is |
| 00:03:56 | 00:04:00 | making bank with this product at |
| 00:03:58 | 00:04:02 | doing almost 10 million dollars a month |
| 00:04:00 | 00:04:05 | in revenue with this product |
| 00:04:02 | 00:04:07 | wow this is a hot selling product guys |
| 00:04:05 | 00:04:08 | lots of competition though |
| 00:04:07 | 00:04:12 | lots of brand names this one's doing |
| 00:04:08 | 00:04:12 | nearly 600 000 a month |
| 00:04:12 | 00:04:16 | wow very very very good numbers i'm |
| 00:04:15 | 00:04:18 | seeing here |
| 00:04:16 | 00:04:20 | but we don't know what the profit is yet |
| 00:04:18 | 00:04:23 | so let's figure that out |
| 00:04:20 | 00:04:25 | um so i'm going to go with this uh price |
| 00:04:23 | 00:04:27 | over here but you could verify this um |
| 00:04:25 | 00:04:29 | to make sure this is accurate by |
| 00:04:27 | 00:04:32 | actually kind of manually doing some |
| 00:04:29 | 00:04:32 | some calculations let's go with 4172 |
| 00:04:32 | 00:04:35 | because |
| 00:04:32 | 00:04:41 | upon checking this does seem to look |
| 00:04:35 | 00:04:44 | fairly accurate so i'm going to put 41 |
| 00:04:41 | 00:04:46 | 72 here and then the next price is how |
| 00:04:44 | 00:04:49 | much is it going to cost you |
| 00:04:46 | 00:04:51 | to ship this product to amazon |
| 00:04:49 | 00:04:53 | so how do you calculate this well first |
| 00:04:51 | 00:04:55 | of all if you're already working with a |
| 00:04:53 | 00:04:56 | supplier and your supplier has already |
| 00:04:55 | 00:04:58 | provided |
| 00:04:56 | 00:04:59 | you with a quote a shipping quote on how |
| 00:04:58 | 00:05:00 | much it might cost you to send the |
| 00:04:59 | 00:05:03 | products |
| 00:05:00 | 00:05:05 | then you already know however if you |
| 00:05:03 | 00:05:07 | are not yet doing that it's way you're |
| 00:05:05 | 00:05:10 | in the preliminary |
| 00:05:07 | 00:05:10 | phases stages of doing your product |
| 00:05:10 | 00:05:13 | research |
| 00:05:10 | 00:05:16 | then you could follow some numbers that |
| 00:05:13 | 00:05:18 | i have here to help calculate |
| 00:05:16 | 00:05:19 | get get you a rough estimate on how much |
| 00:05:18 | 00:05:21 | your shipping will cost not going to be |
| 00:05:19 | 00:05:22 | 100 accurate but it's a good enough |
| 00:05:21 | 00:05:24 | estimate for now |
| 00:05:22 | 00:05:26 | okay so over here these are some rough |
| 00:05:24 | 00:05:27 | estimates so if you're shipping by air |
| 00:05:26 | 00:05:30 | it'll cost around |
| 00:05:27 | 00:05:32 | three dollars and 18 cents per pound |
| 00:05:30 | 00:05:32 | this is if you're shipping from china to |
| 00:05:32 | 00:05:36 | the us |
| 00:05:32 | 00:05:37 | or if you ship by boat it'll be about uh |
| 00:05:36 | 00:05:39 | 27 cents per pound so that's |
| 00:05:37 | 00:05:40 | significantly less |
| 00:05:39 | 00:05:43 | as you know air shipping is always going |
| 00:05:40 | 00:05:45 | to cost more than shipping by sea |
| 00:05:43 | 00:05:48 | that's just the way it is and now if you |
| 00:05:45 | 00:05:50 | are sourcing within the united states |
| 00:05:48 | 00:05:52 | then of course it's going to cost less |
| 00:05:50 | 00:05:54 | because there's no international |
| 00:05:52 | 00:05:56 | shipping and so if that's the case then |
| 00:05:54 | 00:05:58 | if you are going to be |
| 00:05:56 | 00:05:59 | you know not having a ton of inventory |
| 00:05:58 | 00:06:01 | and you're going to pack all the |
| 00:05:59 | 00:06:05 | inventory in individual boxes |
| 00:06:01 | 00:06:07 | it'll be about point 40 cents per pound |
| 00:06:05 | 00:06:09 | if you pack all those boxes into a |
| 00:06:07 | 00:06:12 | pallet it's about 250 dollars pout |
| 00:06:09 | 00:06:12 | but for this example let's uh let's |
| 00:06:12 | 00:06:16 | estimate |
| 00:06:12 | 00:06:18 | based on doing some air shipping |
| 00:06:16 | 00:06:20 | so in this case i can see here the |
| 00:06:18 | 00:06:21 | weight of the product which |
| 00:06:20 | 00:06:23 | actually i'm not going to use this |
| 00:06:21 | 00:06:24 | because maybe you guys don't have a tool |
| 00:06:23 | 00:06:26 | this is a tool that's helping me to |
| 00:06:24 | 00:06:27 | preview this |
| 00:06:26 | 00:06:28 | you can go down to the product |
| 00:06:27 | 00:06:30 | description to see all of this |
| 00:06:28 | 00:06:33 | information |
| 00:06:30 | 00:06:35 | so it's about a 1.46 pounds |
| 00:06:33 | 00:06:37 | so let's just say that i ordered a |
| 00:06:35 | 00:06:42 | thousand units |
| 00:06:37 | 00:06:46 | so 1000 times 1.46 |
| 00:06:42 | 00:06:49 | so that's about 1460 pounds |
| 00:06:46 | 00:06:50 | okay so based on this over here what i |
| 00:06:49 | 00:06:52 | could do |
| 00:06:50 | 00:06:54 | is i could times this price by three |
| 00:06:52 | 00:07:00 | dollars and eighteen cents to get my |
| 00:06:54 | 00:07:00 | air shipping estimate so let's do that |
| 00:07:01 | 00:07:04 | so that's about four thousand six |
| 00:07:03 | 00:07:08 | hundred and forty two dollars |
| 00:07:04 | 00:07:11 | to ship by air four thousand six hundred |
| 00:07:08 | 00:07:15 | and thirty two okay |
| 00:07:11 | 00:07:18 | now let's do it by c |
| 00:07:15 | 00:07:23 | so 1460 times |
| 00:07:18 | 00:07:26 | .27 that's about 394 dollars so |
| 00:07:23 | 00:07:27 | significantly less as i as i said to |
| 00:07:26 | 00:07:31 | ship |
| 00:07:27 | 00:07:34 | by c so now what do we do with this |
| 00:07:31 | 00:07:36 | well let's go over to this section over |
| 00:07:34 | 00:07:37 | here now we want to find out how much |
| 00:07:36 | 00:07:41 | does it cost |
| 00:07:37 | 00:07:44 | per unit so all we're going to do |
| 00:07:41 | 00:07:46 | is divide that by the number of units so |
| 00:07:44 | 00:07:50 | 4632 |
| 00:07:46 | 00:07:53 | divided by 1000 units |
| 00:07:50 | 00:07:58 | that's about four dollars and 63 cents |
| 00:07:53 | 00:08:01 | per unit if i wish to ship by air |
| 00:07:58 | 00:08:04 | 4.6 now if i were to do |
| 00:08:01 | 00:08:04 | by c |
| 00:08:05 | 00:08:11 | it's about 39 cents a unit so in this |
| 00:08:08 | 00:08:13 | box over here the ship to amazon |
| 00:08:11 | 00:08:15 | i'm gonna use for this example the air |
| 00:08:13 | 00:08:18 | shipping quote so four dollars and six |
| 00:08:15 | 00:08:21 | cents per unit so i'm going to put 4.6 |
| 00:08:18 | 00:08:22 | there is an additional cost for shipping |
| 00:08:21 | 00:08:24 | because |
| 00:08:22 | 00:08:25 | in my example here i was giving you an |
| 00:08:24 | 00:08:28 | estimate from |
| 00:08:25 | 00:08:29 | my factory in china shipping it to the |
| 00:08:28 | 00:08:31 | us |
| 00:08:29 | 00:08:33 | but what happens once it arrives in the |
| 00:08:31 | 00:08:36 | u.s it has to go from |
| 00:08:33 | 00:08:38 | the port or from where it is |
| 00:08:36 | 00:08:40 | arriving the airport that it's arriving |
| 00:08:38 | 00:08:42 | to the amazon warehouse there |
| 00:08:40 | 00:08:44 | are going to be trucking charges that |
| 00:08:42 | 00:08:47 | are involved with delivering it |
| 00:08:44 | 00:08:50 | within the us now you can |
| 00:08:47 | 00:08:51 | use amazon's discounted carrier rates |
| 00:08:50 | 00:08:54 | for this |
| 00:08:51 | 00:08:56 | and in order to use their their |
| 00:08:54 | 00:08:57 | discounted rates you'll have to create a |
| 00:08:56 | 00:08:59 | shipping plan |
| 00:08:57 | 00:09:01 | inside your amazon seller central so |
| 00:08:59 | 00:09:01 | you're actually not going to be able to |
| 00:09:01 | 00:09:04 | get an |
| 00:09:01 | 00:09:06 | accurate estimate for this at this point |
| 00:09:04 | 00:09:08 | in time |
| 00:09:06 | 00:09:09 | because you don't have your listing on |
| 00:09:08 | 00:09:12 | amazon |
| 00:09:09 | 00:09:13 | and you aren't able to create a shipping |
| 00:09:12 | 00:09:16 | plan |
| 00:09:13 | 00:09:18 | however it's it's not super significant |
| 00:09:16 | 00:09:20 | the charges of shipping within the us |
| 00:09:18 | 00:09:21 | and for this example and you could do |
| 00:09:20 | 00:09:22 | this for your calculations you could add |
| 00:09:21 | 00:09:25 | about |
| 00:09:22 | 00:09:27 | 6 cents per unit |
| 00:09:25 | 00:09:30 | to to the shipping charge here so you |
| 00:09:27 | 00:09:32 | can add about 6 cents per unit to the |
| 00:09:30 | 00:09:33 | shipped to amazon so i'm going to do 5.2 |
| 00:09:32 | 00:09:36 | as my total |
| 00:09:33 | 00:09:37 | cost of shipping the product all the way |
| 00:09:36 | 00:09:40 | from china |
| 00:09:37 | 00:09:42 | to the amazon fba warehouse and again |
| 00:09:40 | 00:09:44 | this is because i'm choosing to do it |
| 00:09:42 | 00:09:46 | internationally |
| 00:09:44 | 00:09:47 | if you are doing you know within the us |
| 00:09:46 | 00:09:49 | it's going to be a lot less and if |
| 00:09:47 | 00:09:51 | you're doing by sea it's going to be |
| 00:09:49 | 00:09:53 | significantly less |
| 00:09:51 | 00:09:54 | hey guys just wanted to pop in here and |
| 00:09:53 | 00:09:55 | ask |
| 00:09:54 | 00:09:57 | if you've been finding this video |
| 00:09:55 | 00:09:59 | helpful then i'd really appreciate it if |
| 00:09:57 | 00:10:00 | you could give me a thumbs up on this |
| 00:09:59 | 00:10:01 | video |
| 00:10:00 | 00:10:03 | and that'll let me know that you're |
| 00:10:01 | 00:10:05 | liking this and it would encourage me to |
| 00:10:03 | 00:10:05 | create more content like this in the |
| 00:10:05 | 00:10:07 | future |
| 00:10:05 | 00:10:08 | thank you okay so the last thing that |
| 00:10:07 | 00:10:09 | we're going to input here is the cost of |
| 00:10:08 | 00:10:12 | the product |
| 00:10:09 | 00:10:13 | so how much is it going to cost you to |
| 00:10:12 | 00:10:16 | to |
| 00:10:13 | 00:10:18 | buy this product from your manufacturer |
| 00:10:16 | 00:10:19 | so for this example i'm going to go to |
| 00:10:18 | 00:10:22 | alibaba |
| 00:10:19 | 00:10:23 | this is where we have a lot of amazing |
| 00:10:22 | 00:10:25 | manufacturers |
| 00:10:23 | 00:10:26 | and i'm going to type in the keyword for |
| 00:10:25 | 00:10:30 | this product hot |
| 00:10:26 | 00:10:33 | air brush |
| 00:10:30 | 00:10:34 | all right so now that i'm here um |
| 00:10:33 | 00:10:36 | what i'm going to do is i'm going to try |
| 00:10:34 | 00:10:38 | and find what is the average price |
| 00:10:36 | 00:10:40 | so just to give you an idea when you're |
| 00:10:38 | 00:10:41 | on alibaba and you're seeing this price |
| 00:10:40 | 00:10:43 | range |
| 00:10:41 | 00:10:44 | between seven dollars and 40 cents to |
| 00:10:43 | 00:10:46 | eight dollars |
| 00:10:44 | 00:10:47 | what this means is it's giving you an |
| 00:10:46 | 00:10:51 | estimate that |
| 00:10:47 | 00:10:52 | at the lowest quantity so the moq |
| 00:10:51 | 00:10:54 | minimum order quantity |
| 00:10:52 | 00:10:56 | if you order the bare minimum it'll be |
| 00:10:54 | 00:10:57 | about seven dollars and forty cents per |
| 00:10:56 | 00:11:00 | unit |
| 00:10:57 | 00:11:01 | and if you order a larger quantity it'll |
| 00:11:00 | 00:11:02 | be about |
| 00:11:01 | 00:11:04 | or sorry it's the opposite if you order |
| 00:11:02 | 00:11:06 | the bare minimum it'll be about eight |
| 00:11:04 | 00:11:07 | dollars a unit and if you order a larger |
| 00:11:06 | 00:11:10 | quantity |
| 00:11:07 | 00:11:11 | it could be as little as seven dollars |
| 00:11:10 | 00:11:12 | and forty cents per unit |
| 00:11:11 | 00:11:14 | so it's always going to be you're going |
| 00:11:12 | 00:11:15 | to find this when you are contacting |
| 00:11:14 | 00:11:18 | manufacturers |
| 00:11:15 | 00:11:19 | the larger your order the cheaper it is |
| 00:11:18 | 00:11:21 | per unit |
| 00:11:19 | 00:11:22 | okay so this is kind of gives you a |
| 00:11:21 | 00:11:24 | rough estimate um |
| 00:11:22 | 00:11:26 | between five and seven dollars and sixty |
| 00:11:24 | 00:11:29 | cents between ten and twelve dollars |
| 00:11:26 | 00:11:31 | between six 699 766 |
| 00:11:29 | 00:11:32 | so that's just to give you an idea uh so |
| 00:11:31 | 00:11:35 | for this |
| 00:11:32 | 00:11:36 | we'll use the highest number um just |
| 00:11:35 | 00:11:37 | because you know when you're first |
| 00:11:36 | 00:11:39 | starting out you probably aren't going |
| 00:11:37 | 00:11:42 | to be ordering a huge |
| 00:11:39 | 00:11:44 | amount of inventory but honestly guys |
| 00:11:42 | 00:11:46 | these numbers aren't super accurate when |
| 00:11:44 | 00:11:47 | you start contacting the suppliers you |
| 00:11:46 | 00:11:49 | start to hear different numbers |
| 00:11:47 | 00:11:51 | not outrageously different but yeah i |
| 00:11:49 | 00:11:53 | mean they're not 100 |
| 00:11:51 | 00:11:55 | they're not very accurate but that's |
| 00:11:53 | 00:11:57 | good it's good enough for this |
| 00:11:55 | 00:11:59 | example here so what you can do is you |
| 00:11:57 | 00:11:59 | can start looking for a product that |
| 00:11:59 | 00:12:01 | looks |
| 00:11:59 | 00:12:03 | similar to the one that you're wanting |
| 00:12:01 | 00:12:04 | to sell on amazon so if this is the |
| 00:12:03 | 00:12:06 | exact one that i want to sell and |
| 00:12:04 | 00:12:08 | yeah maybe i'll make some modifications |
| 00:12:06 | 00:12:09 | i'll add my own branding to it but |
| 00:12:08 | 00:12:11 | if this is the one that i want to sell |
| 00:12:09 | 00:12:14 | then i'm going to be looking for |
| 00:12:11 | 00:12:17 | a product that looks like that so let's |
| 00:12:14 | 00:12:17 | see if i can find it |
| 00:12:17 | 00:12:21 | oh there we go how about this so here's |
| 00:12:19 | 00:12:23 | one example so this is |
| 00:12:21 | 00:12:25 | let me put this up in a new tab you want |
| 00:12:23 | 00:12:26 | to you want to find more than one |
| 00:12:25 | 00:12:28 | example so you can see what the going |
| 00:12:26 | 00:12:30 | rate is |
| 00:12:28 | 00:12:31 | this is fairly fairly similar so i would |
| 00:12:30 | 00:12:34 | consider that |
| 00:12:31 | 00:12:36 | this one definitely looks similar okay |
| 00:12:34 | 00:12:38 | so and then there's this one here okay |
| 00:12:36 | 00:12:40 | so i'm going to remove this listing |
| 00:12:38 | 00:12:42 | because the price is significantly |
| 00:12:40 | 00:12:44 | less than the other ones and it makes me |
| 00:12:42 | 00:12:46 | suspicious that this product is probably |
| 00:12:44 | 00:12:47 | just not as high quality |
| 00:12:46 | 00:12:50 | plus it doesn't really look the same as |
| 00:12:47 | 00:12:52 | the one that i was originally looking at |
| 00:12:50 | 00:12:55 | so let's uh let's try and get the |
| 00:12:52 | 00:12:55 | average here |
| 00:12:55 | 00:13:01 | 1251 plus |
| 00:12:58 | 00:13:04 | because 100 to 999 units that's probably |
| 00:13:01 | 00:13:07 | how many units we'd order for the first |
| 00:13:04 | 00:13:10 | inventory maybe more uh in this case i'm |
| 00:13:07 | 00:13:10 | going to go with the higher price |
| 00:13:11 | 00:13:14 | 15.9 plus |
| 00:13:15 | 00:13:25 | 500 to that let's do 16. |
| 00:13:20 | 00:13:28 | 16 equals 44 divided by three |
| 00:13:25 | 00:13:30 | so about 14.6 per unit okay so this is |
| 00:13:28 | 00:13:31 | this is rough but you can do this with |
| 00:13:30 | 00:13:34 | more listings so you can be more |
| 00:13:31 | 00:13:36 | accurate i just did three suppliers here |
| 00:13:34 | 00:13:38 | and i didn't even really look to see how |
| 00:13:36 | 00:13:39 | closely similar they are to the one on |
| 00:13:38 | 00:13:40 | amazon |
| 00:13:39 | 00:13:43 | but in this case i'm going to say it's |
| 00:13:40 | 00:13:45 | about 14.6 per unit |
| 00:13:43 | 00:13:46 | okay so i'm going to go back to my |
| 00:13:45 | 00:13:50 | calculator and i'm going to put |
| 00:13:46 | 00:13:52 | 14 14.6 okay |
| 00:13:50 | 00:13:54 | so now we can click over here on the |
| 00:13:52 | 00:13:54 | button |
| 00:13:55 | 00:14:02 | that is not looking good |
| 00:13:58 | 00:14:04 | something went wrong okay sorry guys i |
| 00:14:02 | 00:14:06 | put a thousand units here |
| 00:14:04 | 00:14:07 | you're supposed to just leave it at one |
| 00:14:06 | 00:14:11 | okay so forget about that |
| 00:14:07 | 00:14:13 | leave it at one uh and then here we go |
| 00:14:11 | 00:14:16 | this makes a little bit more sense |
| 00:14:13 | 00:14:18 | okay so we're seeing a net profit of |
| 00:14:16 | 00:14:20 | about 10 dollars and 65 cents with a |
| 00:14:18 | 00:14:24 | margin of about 25 |
| 00:14:20 | 00:14:25 | 26 okay so |
| 00:14:24 | 00:14:27 | when we're seeing the figures of you |
| 00:14:25 | 00:14:29 | know revlon making 10 million dollars a |
| 00:14:27 | 00:14:30 | month on amazon |
| 00:14:29 | 00:14:32 | well they probably do have higher |
| 00:14:30 | 00:14:34 | margins because they probably buy at a |
| 00:14:32 | 00:14:37 | much cheaper rate than any of us can buy |
| 00:14:34 | 00:14:38 | um however you know other sellers you |
| 00:14:37 | 00:14:41 | know |
| 00:14:38 | 00:14:42 | it's it's a 26 profit margin so it's not |
| 00:14:41 | 00:14:44 | horrible |
| 00:14:42 | 00:14:46 | but again my recommendation is to just |
| 00:14:44 | 00:14:48 | go for products with a 30 |
| 00:14:46 | 00:14:49 | profit margin and higher to make it |
| 00:14:48 | 00:14:52 | worth your time |
| 00:14:49 | 00:14:55 | okay but you know what we're not done |
| 00:14:52 | 00:14:58 | this isn't the only expense |
| 00:14:55 | 00:14:58 | all of these costs we would call ongoing |
| 00:14:58 | 00:15:01 | costs |
| 00:14:58 | 00:15:02 | they're all the costs uh required to |
| 00:15:01 | 00:15:04 | sell this product on amazon |
| 00:15:02 | 00:15:05 | so the cost of the product itself |
| 00:15:04 | 00:15:09 | shipping the product |
| 00:15:05 | 00:15:10 | uh the amazon fulfillment fees etc even |
| 00:15:09 | 00:15:12 | advertising which is something that we |
| 00:15:10 | 00:15:14 | didn't include here |
| 00:15:12 | 00:15:15 | usually that's about 0.5 percent of your |
| 00:15:14 | 00:15:17 | selling price |
| 00:15:15 | 00:15:18 | now there are other costs that are |
| 00:15:17 | 00:15:22 | usually one-time |
| 00:15:18 | 00:15:24 | fees those would be called startup costs |
| 00:15:22 | 00:15:25 | so this would include your samples from |
| 00:15:24 | 00:15:27 | your suppliers |
| 00:15:25 | 00:15:29 | this would include your product |
| 00:15:27 | 00:15:31 | photography for the images |
| 00:15:29 | 00:15:33 | on your amazon listing any kind of |
| 00:15:31 | 00:15:34 | giveaways that you want to do to help |
| 00:15:33 | 00:15:36 | boost your |
| 00:15:34 | 00:15:38 | your product during the product launch |
| 00:15:36 | 00:15:40 | phase anything involved with the product |
| 00:15:38 | 00:15:40 | launch because that's something that you |
| 00:15:40 | 00:15:42 | do |
| 00:15:40 | 00:15:44 | once when you first start selling the |
| 00:15:42 | 00:15:46 | product uh and then once you've |
| 00:15:44 | 00:15:47 | established yourself and your listing |
| 00:15:46 | 00:15:49 | you no longer have to |
| 00:15:47 | 00:15:50 | to do those things so those are kind of |
| 00:15:49 | 00:15:53 | one-time costs |
| 00:15:50 | 00:15:54 | and uh that there's no space for that |
| 00:15:53 | 00:15:56 | here on this calculator so what i |
| 00:15:54 | 00:15:58 | recommend for you |
| 00:15:56 | 00:16:00 | is getting the jungle scout profit |
| 00:15:58 | 00:16:03 | margin calculator |
| 00:16:00 | 00:16:04 | excel spreadsheet and this is free i'll |
| 00:16:03 | 00:16:05 | link it down in the description box |
| 00:16:04 | 00:16:08 | below |
| 00:16:05 | 00:16:11 | the spreadsheet has all of the math uh |
| 00:16:08 | 00:16:13 | done for you all the calculations uh the |
| 00:16:11 | 00:16:15 | formula is embedded into the spreadsheet |
| 00:16:13 | 00:16:17 | so it makes it really easy you just have |
| 00:16:15 | 00:16:20 | to plug in some numbers |
| 00:16:17 | 00:16:21 | based on your circumstance your personal |
| 00:16:20 | 00:16:23 | expenses |
| 00:16:21 | 00:16:24 | so as you can see here there are upfront |
| 00:16:23 | 00:16:26 | costs |
| 00:16:24 | 00:16:28 | um that you're usually just paying you |
| 00:16:26 | 00:16:31 | know these are the startup costs your |
| 00:16:28 | 00:16:33 | samples graphic design work photography |
| 00:16:31 | 00:16:35 | miscellaneous these are the fixed costs |
| 00:16:33 | 00:16:37 | so these are the ones that we mentioned |
| 00:16:35 | 00:16:40 | the ongoing cost |
| 00:16:37 | 00:16:41 | and then also variable costs advertising |
| 00:16:40 | 00:16:43 | promotion |
| 00:16:41 | 00:16:44 | fba fees and here you have the |
| 00:16:43 | 00:16:46 | calculator |
| 00:16:44 | 00:16:48 | so you can download this in the |
| 00:16:46 | 00:16:49 | description box below i'm not going to |
| 00:16:48 | 00:16:50 | go through it with you because all of |
| 00:16:49 | 00:16:53 | the |
| 00:16:50 | 00:16:55 | details are here you can just read it |
| 00:16:53 | 00:16:57 | but that is it so that wraps up this |
| 00:16:55 | 00:16:59 | video i hope that you enjoyed it |
| 00:16:57 | 00:17:01 | if you have any questions as always just |
| 00:16:59 | 00:17:03 | comment down below and i'll do my best |
| 00:17:01 | 00:17:04 | to answer them for you |
| 00:17:03 | 00:17:06 | everything that i mentioned in this |
| 00:17:04 | 00:17:08 | video the amazon fba revenue calculator |
| 00:17:06 | 00:17:09 | the jungle scout spreadsheet |
| 00:17:08 | 00:17:12 | those are going to be in this |
| 00:17:09 | 00:17:14 | description box for you for easy access |
| 00:17:12 | 00:17:17 | and if you are just starting your amazon |
| 00:17:14 | 00:17:18 | fba journey or you haven't got inserted |
| 00:17:17 | 00:17:20 | yet you're not sure how to get started |
| 00:17:18 | 00:17:22 | then i recommend |
| 00:17:20 | 00:17:24 | that you take me up on my free four-part |
| 00:17:22 | 00:17:28 | video training series |
| 00:17:24 | 00:17:31 | this is a great intro to amazon fba |
| 00:17:28 | 00:17:32 | it's free for you and in those videos i |
| 00:17:31 | 00:17:34 | share with you exactly what |
| 00:17:32 | 00:17:35 | selling on amazon means as a private |
| 00:17:34 | 00:17:37 | label seller |
| 00:17:35 | 00:17:38 | what's going to be required of you and |
| 00:17:37 | 00:17:40 | it's going to help you |
| 00:17:38 | 00:17:42 | determine whether or not this is the |
| 00:17:40 | 00:17:43 | right fit for you so you can go to |
| 00:17:42 | 00:17:46 | tatianajames.com |
| 00:17:43 | 00:17:48 | fba to get access to the four part |
| 00:17:46 | 00:17:49 | series or again the links will be in the |
| 00:17:48 | 00:17:51 | description box below |
| 00:17:49 | 00:17:54 | so thank you for watching and i'll see |
| 00:17:51 | 00:17:54 | you in the next one bye |
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