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Amazon FBA Profit Margins

Published on: December 2 2022 by Tatiana James

Amazon FBA Profit Margins

Amazon FBA Profit Margins

startTime durationTime text
00:00:00 00:00:03 most amazon sellers don't truly know
00:00:02 00:00:06 their profits
00:00:03 00:00:07 shocked i'm not because i was one of
00:00:06 00:00:09 them
00:00:07 00:00:11 when i first started selling on amazon i
00:00:09 00:00:13 just assumed that because i was
00:00:11 00:00:14 receiving deposits from amazon and there
00:00:13 00:00:17 was cash in the bank
00:00:14 00:00:18 that my business was profitable but this
00:00:17 00:00:20 is not
00:00:18 00:00:22 good business practike and if there's
00:00:20 00:00:25 anything that you must know
00:00:22 00:00:27 as a business owner it's your numbers if
00:00:25 00:00:29 you don't truly know your numbers
00:00:27 00:00:30 then this negligence will be the
00:00:29 00:00:33 beginning
00:00:30 00:00:33 of the end of your business but i don't
00:00:33 00:00:35 blame people
00:00:33 00:00:38 i don't blame you and i didn't blame
00:00:35 00:00:41 myself because it is confusing
00:00:38 00:00:44 nobody wants to combine 72 types of fees
00:00:41 00:00:46 from amazon seller central spreadsheets
00:00:44 00:00:48 to know if their products are profitable
00:00:46 00:00:49 and amazon seller central is not user
00:00:48 00:00:51 friendly
00:00:49 00:00:53 it is confusing it's hard to determine
00:00:51 00:00:55 which reports i should be pulling
00:00:53 00:00:57 how to interpret the data and how to
00:00:55 00:00:59 match two and two together
00:00:57 00:01:01 so that is why one of the best pieces of
00:00:59 00:01:01 advice that i'm going to give you in
00:01:01 00:01:04 this video
00:01:01 00:01:06 is to ditch amazon seller central
00:01:04 00:01:09 listen if you haven't figured it out by
00:01:06 00:01:10 now it's not going to get any easier by
00:01:09 00:01:12 the end of this video you're going to be
00:01:10 00:01:14 thanking me for the recommendation
00:01:12 00:01:15 i'm about to make because it's the dummy
00:01:14 00:01:17 proof way
00:01:15 00:01:19 of seeing your profit margins and
00:01:17 00:01:21 interpreting data so that you can make
00:01:19 00:01:23 decisions in your business
00:01:21 00:01:25 shopkeeper is an app for amazon sellers
00:01:23 00:01:26 who want a simple way to view their
00:01:25 00:01:28 profit margins
00:01:26 00:01:29 and interpret data it is literally the
00:01:28 00:01:31 most
00:01:29 00:01:32 user-friendly dashboard i have ever come
00:01:31 00:01:35 across even a
00:01:32 00:01:35 child would have no trouble interpreting
00:01:35 00:01:37 data
00:01:35 00:01:39 from it and you won't even need to log
00:01:37 00:01:40 into your amazon seller central account
00:01:39 00:01:42 to view stats anymore
00:01:40 00:01:44 because everything you need to see will
00:01:42 00:01:45 be in shopkeeper
00:01:44 00:01:48 now one of the things that i do love
00:01:45 00:01:49 about it is it's one of the few apps
00:01:48 00:01:51 that will group together
00:01:49 00:01:53 all your data across all your
00:01:51 00:01:54 marketplaces that you're selling in
00:01:53 00:01:56 and this way you're going to be able to
00:01:54 00:01:58 get an overview of your numbers
00:01:56 00:02:01 to see how you are performing with your
00:01:58 00:02:03 amazon business as a whole
00:02:01 00:02:05 now in a moment i am going to jump
00:02:03 00:02:06 behind my computer to show you guys what
00:02:05 00:02:08 shopkeeper looks like
00:02:06 00:02:10 but before i do i want to let you know
00:02:08 00:02:11 that today's episode has been sponsored
00:02:10 00:02:12 by them
00:02:11 00:02:14 and they want to make sure that all of
00:02:12 00:02:16 you guys get to try shopkeeper for
00:02:14 00:02:18 free so you are going to get a free
00:02:16 00:02:20 trial it's not
00:02:18 00:02:21 a 14 day free trial it's not even a 30
00:02:20 00:02:24 day free trial
00:02:21 00:02:25 you get to try shopkeeper for free for
00:02:24 00:02:27 90 days
00:02:25 00:02:29 that's three months so this way you get
00:02:27 00:02:31 to benefit from
00:02:29 00:02:33 understanding your numbers and feeling
00:02:31 00:02:34 confident that you know you are
00:02:33 00:02:36 profiting in your business
00:02:34 00:02:37 here i am logged into the shopkeeper
00:02:36 00:02:40 dashboard
00:02:37 00:02:42 this is a demo account so right here in
00:02:40 00:02:44 the dashboard you get a snapshot of
00:02:42 00:02:46 today's sales yesterday's sales in the
00:02:44 00:02:48 last 30 days so this is really great so
00:02:46 00:02:50 that you can compare
00:02:48 00:02:53 you can easily see your revenue and your
00:02:50 00:02:54 profit your total sales and your best
00:02:53 00:02:56 selling items
00:02:54 00:02:58 so that's great and then over here you
00:02:56 00:02:59 can see your sales growth over the last
00:02:58 00:03:01 12 months
00:02:59 00:03:04 so on the dashboard here you just get a
00:03:01 00:03:05 really great overview of everything all
00:03:04 00:03:08 of the important things that you need to
00:03:05 00:03:11 see and i love that they use icons
00:03:08 00:03:12 uh makes things you know a lot more
00:03:11 00:03:14 attractive
00:03:12 00:03:16 so you can see here your inventory value
00:03:14 00:03:19 you got 121
00:03:16 00:03:22 products in stok 68 000 units
00:03:19 00:03:25 cost of goods 760 000
00:03:22 00:03:26 if all sold at current prices revenue
00:03:25 00:03:30 would be
00:03:26 00:03:33 2.5 million payout would be 1.7 million
00:03:30 00:03:35 a profit of 964 000.
00:03:33 00:03:36 so that's great like you know the value
00:03:35 00:03:37 of the inventory that you're currently
00:03:36 00:03:40 holding
00:03:37 00:03:41 if it's too much you can try and uh
00:03:40 00:03:44 clearance some items
00:03:41 00:03:45 uh this is just going to help you make
00:03:44 00:03:47 better decisions in your business
00:03:45 00:03:48 knowing this information
00:03:47 00:03:51 and if you guys know anything about my
00:03:48 00:03:53 story you probably know that
00:03:51 00:03:54 you know i had a lot of dead inventory
00:03:53 00:03:55 because i wasn't pulling my inventory
00:03:54 00:03:58 reports
00:03:55 00:03:59 i wasn't aware of how much inventory i
00:03:58 00:04:01 had
00:03:59 00:04:02 that was just getting stored at the the
00:04:01 00:04:04 fulfillment center
00:04:02 00:04:06 and was just piling up because those
00:04:04 00:04:08 units weren't selling
00:04:06 00:04:09 so if i clearly was able to see
00:04:08 00:04:10 something like this i would have been
00:04:09 00:04:12 able to
00:04:10 00:04:14 take action quicker to do a clearance on
00:04:12 00:04:15 those items so that i could at least
00:04:14 00:04:18 move some of that inventory and
00:04:15 00:04:21 recuperate my investment
00:04:18 00:04:23 over here you can see your stok so we
00:04:21 00:04:24 have 19 products that are high stok
00:04:23 00:04:26 will last over six months
00:04:24 00:04:28 we have 22 products that are ideal will
00:04:26 00:04:30 last three to six months
00:04:28 00:04:32 sixteen products that are low one to two
00:04:30 00:04:33 months and we have some products that
00:04:32 00:04:36 are too low
00:04:33 00:04:36 under one month 149 products out of
00:04:36 00:04:39 stok
00:04:36 00:04:40 so again very very easy to see like
00:04:39 00:04:42 super clear
00:04:40 00:04:44 guys you can see what i'm toking about
00:04:42 00:04:46 when i say this is dummy proof
00:04:44 00:04:48 you know they even use pictures here for
00:04:46 00:04:49 your product so you can easily just see
00:04:48 00:04:52 the picture of your product
00:04:49 00:04:55 instead of seeing some extra text and i
00:04:52 00:04:57 just love it over here you can see your
00:04:55 00:04:59 ppc spend in the last seven days
00:04:57 00:05:00 you can see your top selling items over
00:04:59 00:05:04 the last seven days
00:05:00 00:05:06 your record units sold in one day record
00:05:04 00:05:07 profit in one day what your profit
00:05:06 00:05:10 margin is
00:05:07 00:05:11 over the last 30 day period your current
00:05:10 00:05:13 available cash
00:05:11 00:05:14 across different marketplaces and
00:05:13 00:05:16 sellers
00:05:14 00:05:19 so their sellers meaning are there other
00:05:16 00:05:21 people selling on my listing if so
00:05:19 00:05:22 are there new sellers on the listing
00:05:21 00:05:26 here you can see that
00:05:22 00:05:28 there were eight fewer sellers that day
00:05:26 00:05:31 and over the last 30 days 13 fewer
00:05:28 00:05:33 sellers
00:05:31 00:05:34 and you can hear here that every single
00:05:33 00:05:37 time someone places an
00:05:34 00:05:38 order you hear the cha-ching because
00:05:37 00:05:41 you're getting
00:05:38 00:05:42 live data so those sales stats are
00:05:41 00:05:44 accurate they're live
00:05:42 00:05:45 and it's kind of um like you have a
00:05:44 00:05:47 little bit of a
00:05:45 00:05:50 dopamine boost every time you hear that
00:05:47 00:05:52 cha-ching and it reinforces that yeah
00:05:50 00:05:54 you're making sales right now
00:05:52 00:05:55 as you're you're on your computer
00:05:54 00:05:56 tracking your sales and someone just
00:05:55 00:05:59 bought your product
00:05:56 00:06:00 so it's kind of fun all right so that is
00:05:59 00:06:03 the dashboard
00:06:00 00:06:04 now what i want to show you is the
00:06:03 00:06:06 profit and loss
00:06:04 00:06:07 section i'm going to cover some of the
00:06:06 00:06:09 other tools
00:06:07 00:06:11 really briefly but the profit and loss
00:06:09 00:06:12 is really what i want to focus this
00:06:11 00:06:14 video on
00:06:12 00:06:15 because as i mentioned most people don't
00:06:14 00:06:18 truly know
00:06:15 00:06:22 their profits and this is why so
00:06:18 00:06:25 you can see here there is a number
00:06:22 00:06:28 of uh pieces of information of fees
00:06:25 00:06:30 from amazon that you need to combine in
00:06:28 00:06:31 order to truly know what your profit
00:06:30 00:06:33 margins are
00:06:31 00:06:34 and shopkeeper will pull this data and
00:06:33 00:06:36 do it all for you
00:06:34 00:06:38 so you can choose here over the last six
00:06:36 00:06:39 months the time period you could do
00:06:38 00:06:41 today yesterday
00:06:39 00:06:43 day before yesterday you can choose if
00:06:41 00:06:44 you want to do all marketplaces or if
00:06:43 00:06:47 you want to
00:06:44 00:06:48 narrow it in on one marketplace and you
00:06:47 00:06:52 can even
00:06:48 00:06:54 deselect certain acins or certain skus
00:06:52 00:06:56 if you don't want them to show up
00:06:54 00:06:59 so you can see here this is going to be
00:06:56 00:07:02 by month december january february
00:06:59 00:07:03 units sold refunds so this gives you
00:07:02 00:07:07 kind of an overview
00:07:03 00:07:10 now over here you can see all of the
00:07:07 00:07:12 this is the total revenue for this month
00:07:10 00:07:14 okay great so we have the revenue here
00:07:12 00:07:16 all of these information this all of
00:07:14 00:07:18 these numbers are pulled from your
00:07:16 00:07:20 amazon reports
00:07:18 00:07:21 now we have all the amazon fees okay so
00:07:20 00:07:24 this includes
00:07:21 00:07:25 lightning deals coupon redemption fees
00:07:24 00:07:29 uh
00:07:25 00:07:31 storage overage fee um tax on amazon fba
00:07:29 00:07:32 fees and of course the fba fees
00:07:31 00:07:36 themselves
00:07:32 00:07:39 so amazon fees that total over here
00:07:36 00:07:41 then we have the manufacturing cost of
00:07:39 00:07:42 goods sold so this would be probably the
00:07:41 00:07:44 only data that you would have to input
00:07:42 00:07:45 yourself and i'm going to show you where
00:07:44 00:07:47 you would do that
00:07:45 00:07:48 in a second you would input this data
00:07:47 00:07:51 per
00:07:48 00:07:53 product that you're selling so that will
00:07:51 00:07:56 populate for you once you've set that up
00:07:53 00:07:57 you only really have to set this up once
00:07:56 00:07:59 then there's a place where you can put
00:07:57 00:08:02 any kind of manual tracked
00:07:59 00:08:02 sales any kind of expenses or income
00:08:02 00:08:04 that
00:08:02 00:08:06 may not be pulled from your amazon
00:08:04 00:08:08 account uh so there is a place for that
00:08:06 00:08:10 where you can manually insert that i'll
00:08:08 00:08:11 show you how to do that in a second
00:08:10 00:08:14 and then over here you have some
00:08:11 00:08:16 miscellaneous um charges
00:08:14 00:08:18 so here you have your ppc ad spend your
00:08:16 00:08:20 sponsor products
00:08:18 00:08:24 sponsored brands sponsored display these
00:08:20 00:08:26 are all of your advertising expenses on
00:08:24 00:08:28 amazon
00:08:26 00:08:30 and a number of other fees here so even
00:08:28 00:08:31 some of these fees you probably aren't
00:08:30 00:08:33 even aware of
00:08:31 00:08:34 um these are fees that yeah they're on
00:08:33 00:08:36 the reports but you have to know what
00:08:34 00:08:38 kind of reports to pull and how to
00:08:36 00:08:42 interpret that data
00:08:38 00:08:44 and then you have losses and damages so
00:08:42 00:08:46 warehouse damage reimbursement you know
00:08:44 00:08:48 tiknically if amazon damages a product
00:08:46 00:08:50 that's stored at their warehouse they're
00:08:48 00:08:52 supposed to reimburse you for that so
00:08:50 00:08:54 here you might have some reimbursements
00:08:52 00:08:56 and then reimbursement total over here
00:08:54 00:08:57 so this gives you the grand total at the
00:08:56 00:09:00 very end okay
00:08:57 00:09:02 so look how many fees that we had to
00:09:00 00:09:05 account for
00:09:02 00:09:08 before we could get a clear idea on the
00:09:05 00:09:10 true profit over here okay so
00:09:08 00:09:11 that's why i'm saying you know most of
00:09:10 00:09:13 us probably don't know what our true
00:09:11 00:09:15 margins are just because it can be
00:09:13 00:09:17 confusing there's just so many
00:09:15 00:09:19 pieces to pull so i'm going to show you
00:09:17 00:09:22 over here what i mentioned
00:09:19 00:09:24 in settings you can input any
00:09:22 00:09:26 miscellaneous income and expenses
00:09:24 00:09:27 so that would be over here expenses
00:09:26 00:09:30 income
00:09:27 00:09:32 and then you can do products by one by
00:09:30 00:09:33 one so you can configure the product to
00:09:32 00:09:36 input
00:09:33 00:09:38 any kind of cost of goods so this would
00:09:36 00:09:40 be one product you could put even the
00:09:38 00:09:42 lead time so how long does it take to
00:09:40 00:09:44 manufacture the product so that's going
00:09:42 00:09:47 to help you with your inventory
00:09:44 00:09:50 planning and over here
00:09:47 00:09:51 you can put the cost per marketplace
00:09:50 00:09:53 because of course
00:09:51 00:09:54 if you're storing in the us you know
00:09:53 00:09:56 they're going to be different costs
00:09:54 00:09:58 associated with the product than if
00:09:56 00:09:58 you're going to be shipping to canada
00:09:58 00:10:00 right
00:09:58 00:10:02 so you can put all of that information
00:10:00 00:10:04 right here
00:10:02 00:10:05 so you would input the manufacturing
00:10:04 00:10:06 costs cost buying the product from the
00:10:05 00:10:08 supplier
00:10:06 00:10:10 if there's any inspection fee the
00:10:08 00:10:13 shipping costs of the united states
00:10:10 00:10:15 uh local shipping the trucking charges
00:10:13 00:10:15 taxes so all of that so this is how you
00:10:15 00:10:18 get a
00:10:15 00:10:19 really accurate representation of your
00:10:18 00:10:21 profit margins
00:10:19 00:10:23 right so there is information that you
00:10:21 00:10:26 will need to input
00:10:23 00:10:28 in order to get the most accurate
00:10:26 00:10:31 snapshot
00:10:28 00:10:32 so over here you can get the per product
00:10:31 00:10:34 profit margin
00:10:32 00:10:35 and again that's going to change even
00:10:34 00:10:37 though it's the same product
00:10:35 00:10:38 the profit will change depending on
00:10:37 00:10:40 which marketplace you're selling in
00:10:38 00:10:42 because there are different costs
00:10:40 00:10:42 associated with getting the product to
00:10:42 00:10:45 there
00:10:42 00:10:46 and perhaps different fees so once
00:10:45 00:10:48 you've input that information
00:10:46 00:10:50 then that's how you're going to get a
00:10:48 00:10:54 really accurate snapshot over here
00:10:50 00:10:56 in the profit and loss spreadsheet
00:10:54 00:10:58 and of course you can always export this
00:10:56 00:11:00 so you can export this as a file if you
00:10:58 00:11:01 would like to save it or send it to
00:11:00 00:11:04 someone
00:11:01 00:11:05 all of that so this is really what i
00:11:04 00:11:06 wanted to highlight and i wanted to
00:11:05 00:11:08 share with you guys because i know it's
00:11:06 00:11:11 going to help so many of you
00:11:08 00:11:12 who have no idea how to figure out your
00:11:11 00:11:14 profit margins
00:11:12 00:11:16 and i could show you on amazon seller
00:11:14 00:11:18 central where to go and what to do
00:11:16 00:11:20 but honestly i just know from personal
00:11:18 00:11:23 experience it's just confusing
00:11:20 00:11:24 and if you're if you haven't figured it
00:11:23 00:11:26 out by now chances are
00:11:24 00:11:28 you're not going to figure it out you're
00:11:26 00:11:29 just not going to do it and this is just
00:11:28 00:11:31 going to give you a
00:11:29 00:11:33 far better idea so just a few other
00:11:31 00:11:34 things that i'm going to show you here
00:11:33 00:11:36 before i wrap up
00:11:34 00:11:38 here on the sellers section you can see
00:11:36 00:11:39 if there are other people selling your
00:11:38 00:11:41 product
00:11:39 00:11:42 if you don't have brand registry then
00:11:41 00:11:44 there is a high chance that when your
00:11:42 00:11:46 product becomes more popular
00:11:44 00:11:48 there may be other sellers selling your
00:11:46 00:11:49 item so you can see within 24 hours if
00:11:48 00:11:52 anyone has been
00:11:49 00:11:53 added to your listing you can see here
00:11:52 00:11:56 one seller
00:11:53 00:11:58 over 30 days 11 joined 10 left so that
00:11:56 00:12:00 meant that there was
00:11:58 00:12:02 there's one more seller so again super
00:12:00 00:12:04 super clear
00:12:02 00:12:06 your inventory okay so this is going to
00:12:04 00:12:10 help with your inventory planning
00:12:06 00:12:11 uh you can see how much supply you have
00:12:10 00:12:14 good for eight months good for seven
00:12:11 00:12:16 months good for six months
00:12:14 00:12:18 uh trends over here i really like this
00:12:16 00:12:20 actually this is really helpful
00:12:18 00:12:22 so you can see here total order so this
00:12:20 00:12:23 can give you a big picture view on how
00:12:22 00:12:26 you
00:12:23 00:12:27 are performing with your business so you
00:12:26 00:12:29 can see the average order value as well
00:12:27 00:12:31 which is helpful
00:12:29 00:12:33 in making a decision on what your
00:12:31 00:12:34 customer acquisition costs are if
00:12:33 00:12:36 they're too high or too
00:12:34 00:12:39 low it's going to help to know what the
00:12:36 00:12:41 average order value is
00:12:39 00:12:42 so you have the sales number of units
00:12:41 00:12:46 sold you've got
00:12:42 00:12:47 revenue top line income you've got your
00:12:46 00:12:50 profit
00:12:47 00:12:51 you've got your ppc spend so just good
00:12:50 00:12:53 information to have and you can of
00:12:51 00:12:54 course do it by day and you can do it by
00:12:53 00:12:57 a week
00:12:54 00:12:58 and over here you have the sales these
00:12:57 00:13:00 are going to be real time
00:12:58 00:13:01 sales so it's going to be as up to date
00:13:00 00:13:03 as it can be
00:13:01 00:13:05 you can see your units sold how many
00:13:03 00:13:08 promos how many refunds
00:13:05 00:13:08 total revenue your profit even your
00:13:08 00:13:11 margin
00:13:08 00:13:12 and your roi so you don't have to do the
00:13:11 00:13:13 calculations you don't have to do any
00:13:12 00:13:15 kind of math
00:13:13 00:13:17 equations it does that for you the same
00:13:15 00:13:19 with your a cost and your tacos
00:13:17 00:13:21 and you can see what your break-even
00:13:19 00:13:22 point is so for example the break even
00:13:21 00:13:25 was 35
00:13:22 00:13:26 this is over break even so you can see
00:13:25 00:13:28 displayed in red
00:13:26 00:13:30 it draws your attention there and you
00:13:28 00:13:31 can work on that product a little bit
00:13:30 00:13:34 more
00:13:31 00:13:35 so that is shopkeeper a really quick
00:13:34 00:13:37 demo for you guys
00:13:35 00:13:38 hope you enjoyed it so as you can see
00:13:37 00:13:40 shopkeeper is
00:13:38 00:13:42 incredibly user friendly as i mentioned
00:13:40 00:13:44 before it is
00:13:42 00:13:46 by far the most user-friendly platform
00:13:44 00:13:48 i've ever come across
00:13:46 00:13:49 usually like yeah other platforms they
00:13:48 00:13:50 have a lot of data
00:13:49 00:13:53 but you're still having to pull
00:13:50 00:13:54 spreadsheets and it's still a little bit
00:13:53 00:13:58 confusing to understand
00:13:54 00:14:00 this is as simple as it gets and i love
00:13:58 00:14:01 it so for someone like me who's not a
00:14:00 00:14:04 numbers person
00:14:01 00:14:05 this is perfect so remember guys you can
00:14:04 00:14:09 try shopkeeper for free
00:14:05 00:14:12 for 90 days by going to tatianajames.com
00:14:09 00:14:14 shopkeeper i will also put this link in
00:14:12 00:14:16 the description box of this video
00:14:14 00:14:18 if you guys enjoyed this video give me a
00:14:16 00:14:19 thumbs up if you have any questions
00:14:18 00:14:20 about
00:14:19 00:14:23 shopkeeper feel free to comment down
00:14:20 00:14:25 below keep in mind that shopkeeper does
00:14:23 00:14:27 work for 18 different marketplaces
00:14:25 00:14:29 so wherever you're selling it can work
00:14:27 00:14:31 for you
00:14:29 00:14:32 but if you do have any other questions
00:14:31 00:14:34 let me know in the comment section below
00:14:32 00:14:36 thank you for watching i'll see you next
00:14:34 00:14:36 time