My Profit Margins & How To Calculate Estimated Profit For Amazon FBA Product

Published on: December 2 2022 by Tatiana James

My Profit Margins & How To Calculate Estimated Profit For Amazon FBA Product

My Profit Margins & How To Calculate Estimated Profit For Amazon FBA Product

My Profit Margins & How To Calculate Estimated Profit For Amazon FBA Product

startTime	durationTime	text
00:00:00	00:00:04	what is considered a good profit margin
00:00:02	00:00:06	when selling on amazon
00:00:04	00:00:08	that is the question i'm going to be
00:00:06	00:00:09	answering today and i'm also going to be
00:00:08	00:00:12	doing a screen share portion with you
00:00:09	00:00:13	where i open up about my own e-commerce
00:00:12	00:00:14	business and i share with you what my
00:00:13	00:00:17	profit margins are
00:00:14	00:00:18	both my growth gross profit margin and
00:00:17	00:00:21	my net profits
00:00:18	00:00:22	on amazon and on shopify because the
00:00:21	00:00:23	profits are not the same and i'm going
00:00:22	00:00:25	to explain
00:00:23	00:00:27	why i'm also going to share with you how
00:00:25	00:00:28	you can start calculating profit margins
00:00:27	00:00:32	when you're doing product
00:00:28	00:00:34	research so let's dive into it
00:00:32	00:00:36	so first of all if you are an e-commerce
00:00:34	00:00:37	seller in general the average profit
00:00:36	00:00:40	margin is around 40
00:00:37	00:00:41	which is good but if you're selling on
00:00:40	00:00:43	amazon then you know
00:00:41	00:00:45	that those profit margins are 10
00:00:43	00:00:47	generally a bit less
00:00:45	00:00:49	simply because it's more expensive to
00:00:47	00:00:54	sell products on amazon and use
00:00:49	00:00:56	fba which stands for fulfilled by amazon
00:00:54	00:00:59	and you might be thinking well why would
00:00:56	00:01:02	i sell on amazon then why would i
00:00:59	00:01:04	lose profits to amazon and the reason
00:01:02	00:01:06	being is because amazon provides a lot
00:01:04	00:01:07	of opportunities
00:01:06	00:01:09	if you are brand new you're just
00:01:07	00:01:11	starting up your business you're
00:01:09	00:01:14	building a brand from the bottom up
00:01:11	00:01:17	then amazon is is your platform amazon
00:01:14	00:01:20	enables you to potentially access
00:01:17	00:01:21	hundreds of thousands of customers they
00:01:20	00:01:24	allow you to reach
00:01:21	00:01:26	people because amazon is a search engine
00:01:24	00:01:28	and then they also have a lot of perks
00:01:26	00:01:30	so selling on amazon is a great way to
00:01:28	00:01:32	start your business
00:01:30	00:01:34	but eventually once you start scaling
00:01:32	00:01:34	you definitely want to open up your own
00:01:34	00:01:36	website
00:01:34	00:01:39	because that way you can have higher
00:01:36	00:01:41	profit margins and you can retain
00:01:39	00:01:42	more customer information you have more
00:01:41	00:01:45	control over your marketing
00:01:42	00:01:47	over your branding over you know
00:01:45	00:01:49	creating a better customer experience
00:01:47	00:01:50	so definitely want to start on amazon
00:01:49	00:01:52	now if you're doing
00:01:50	00:01:54	product research for the first time and
00:01:52	00:01:55	you're wondering well what product
00:01:54	00:01:58	you know profit margin should i be
00:01:55	00:02:00	looking for in general the rule of thumb
00:01:58	00:02:02	is around 25
00:02:00	00:02:04	so when you're calculating your profit
00:02:02	00:02:07	margins you want to look for 25
00:02:04	00:02:08	plus of course the more the better but
00:02:07	00:02:09	we want to refrain from
00:02:08	00:02:12	finding products that are going to
00:02:09	00:02:14	render us under 25 profit margin
00:02:12	00:02:16	because it just doesn't make it worth
00:02:14	00:02:18	our time at the end of the day
00:02:16	00:02:20	we want to be making money we want to be
00:02:18	00:02:22	profitable and we want to have enough
00:02:20	00:02:25	profit where we can remain competitive
00:02:22	00:02:28	with other amazon sellers now if you're
00:02:25	00:02:30	doing product research i recommend that
00:02:28	00:02:32	you look for products that are selling
00:02:30	00:02:34	between fifteen dollars
00:02:32	00:02:36	and seventy dollars fifteen dollars
00:02:34	00:02:39	because anything below that
00:02:36	00:02:40	it just becomes harder to be profitable
00:02:39	00:02:41	you have to sell a very large quantity
00:02:40	00:02:44	of units
00:02:41	00:02:48	it's more of like a headache than it is
00:02:44	00:02:50	fun so 15 is a good
00:02:48	00:02:51	price range um and you have to also
00:02:50	00:02:53	understand that when you're selling on
00:02:51	00:02:55	amazon there's like a set
00:02:53	00:02:57	fee if you're using fba so if you're
00:02:55	00:02:58	selling a product for three dollars you
00:02:57	00:03:01	just there's no way you're gonna be
00:02:58	00:03:03	profitable if you're selling it with fba
00:03:01	00:03:06	so fifteen dollars to seventy dollars
00:03:03	00:03:08	and seventy dollars because
00:03:06	00:03:10	all you have to understand what the
00:03:08	00:03:12	customers want when they're on amazon
00:03:10	00:03:13	oftentimes people shop on amazon because
00:03:12	00:03:15	they're getting a price
00:03:13	00:03:17	a better price than they would elsewhere
00:03:15	00:03:19	and so seventy dollars is still
00:03:17	00:03:20	like a sweet spot for people who are
00:03:19	00:03:23	shopping on amazon
00:03:20	00:03:24	where it's not too much that they become
00:03:23	00:03:26	hesitant just
00:03:24	00:03:28	to make a purchase um and it's just a
00:03:26	00:03:30	good spot so that's a good price range
00:03:28	00:03:31	just kind of a good range for you to
00:03:30	00:03:33	start doing your
00:03:31	00:03:35	product research so let's dive into the
00:03:33	00:03:35	screen share portion where i'm going to
00:03:35	00:03:37	share with you
00:03:35	00:03:38	my profit margins and we're going to
00:03:37	00:03:41	chat more there hey guys
00:03:38	00:03:43	this is a profit analysis i've hired
00:03:41	00:03:45	someone to do this
00:03:43	00:03:47	essentially what this person does is
00:03:45	00:03:50	they have all of the information about
00:03:47	00:03:52	all of my expenses all of the costs for
00:03:50	00:03:53	what it costs to sell on amazon
00:03:52	00:03:56	warehousing
00:03:53	00:03:58	shipping fulfillment all of that stuff
00:03:56	00:04:01	the same thing with my website what it
00:03:58	00:04:02	costs to sell on shopify
00:04:01	00:04:04	having my own products hosted at my own
00:04:02	00:04:06	fulfillment center
00:04:04	00:04:08	and they create this spreadsheet for me
00:04:06	00:04:09	and this gets updated every time there's
00:04:08	00:04:11	a change
00:04:09	00:04:14	so if a manufacturer increases their
00:04:11	00:04:17	prices or decreases their prices
00:04:14	00:04:19	if there are new taxes if you know
00:04:17	00:04:20	the shipping costs more then we have to
00:04:19	00:04:23	update the spreadsheet so that the
00:04:20	00:04:24	profit margins are accurate and the
00:04:23	00:04:25	person i hired because i know you guys
00:04:24	00:04:27	are going to ask me
00:04:25	00:04:29	i heard them from upwork.com so you can
00:04:27	00:04:31	find people who are very talented and
00:04:29	00:04:33	skilled over there
00:04:31	00:04:35	so as you can see here on my shopify
00:04:33	00:04:40	store my gross margins are around
00:04:35	00:04:43	66 and my net margins are around 61
00:04:40	00:04:44	so that's actually a very pretty good
00:04:43	00:04:46	profit margin
00:04:44	00:04:48	for an e-commerce business and once
00:04:46	00:04:49	again you do have to keep in mind that a
00:04:48	00:04:51	big reason for this
00:04:49	00:04:52	is because i don't spend any money on
00:04:51	00:04:55	advertising
00:04:52	00:04:57	so we do over seven figures a year and i
00:04:55	00:05:00	spend no money on advertising
00:04:57	00:05:03	and i don't need to because i'm going
00:05:00	00:05:04	the other route and the other route is
00:05:03	00:05:06	leveraging
00:05:04	00:05:07	social media and influencer marketing
00:05:06	00:05:10	and
00:05:07	00:05:11	this is more of the new way to to do
00:05:10	00:05:13	e-commerce business
00:05:11	00:05:15	and a lot of people are unfamiliar with
00:05:13	00:05:16	it and it's
00:05:15	00:05:18	unknown territory and so a lot of people
00:05:16	00:05:21	don't want to discover it and
00:05:18	00:05:23	learn it and so when you do the things
00:05:21	00:05:24	that most people are not willing to do
00:05:23	00:05:26	you're going to see the results that
00:05:24	00:05:27	most people don't get to see
00:05:26	00:05:29	and so you have to make a choice and so
00:05:27	00:05:31	i decided to go about
00:05:29	00:05:33	that way it was a slow and steady route
00:05:31	00:05:36	to growth rather than spending money
00:05:33	00:05:38	on ads and sure my cus my business could
00:05:36	00:05:39	be doing 10 million a year but how much
00:05:38	00:05:41	am i going to be profiting
00:05:39	00:05:43	if i'm spending so much money on
00:05:41	00:05:44	advertising and at the end of the day
00:05:43	00:05:46	for me
00:05:44	00:05:48	profit is what matters and it really
00:05:46	00:05:50	there's no right or wrong
00:05:48	00:05:52	some business owners they prefer growth
00:05:50	00:05:54	over profit
00:05:52	00:05:56	and that's for their own reasons maybe
00:05:54	00:05:58	it's for ego because they want to have a
00:05:56	00:06:01	very big company maybe it's because they
00:05:58	00:06:03	want to have a really big impact
00:06:01	00:06:04	who knows but you have to decide are you
00:06:03	00:06:07	in it to be
00:06:04	00:06:09	profitable or are you in it for growth
00:06:07	00:06:11	and so for myself i'm in it for
00:06:09	00:06:13	profitability right now
00:06:11	00:06:14	and so we have high profit margins which
00:06:13	00:06:16	is great
00:06:14	00:06:18	uh really really happy about that and
00:06:16	00:06:19	then on amazon the profit margins are
00:06:18	00:06:20	different
00:06:19	00:06:22	so if we go to the amazon store you're
00:06:20	00:06:25	going to see here that it's less
00:06:22	00:06:26	i profit less on amazon 55 gross profit
00:06:25	00:06:30	and net
00:06:26	00:06:32	margins around 41 still really good
00:06:30	00:06:34	considering a lot of people are um you
00:06:32	00:06:35	know getting 25
00:06:34	00:06:37	profit margins considered good for
00:06:35	00:06:39	amazon um
00:06:37	00:06:40	and the reason being you know as you
00:06:39	00:06:42	guys know
00:06:40	00:06:44	i i used amazon because it was an
00:06:42	00:06:44	essential tool for me to build my
00:06:44	00:06:47	business
00:06:44	00:06:48	i leveraged amazon i leveraged their
00:06:47	00:06:50	platform
00:06:48	00:06:52	to help gain access to thousands of
00:06:50	00:06:53	customers
00:06:52	00:06:55	i built my brand on amazon and that's
00:06:53	00:06:57	what i encourage you guys to do because
00:06:55	00:06:58	it's a huge opportunity
00:06:57	00:07:00	and if it wasn't for amazon i wouldn't
00:06:58	00:07:01	have the the e-commerce business i have
00:07:00	00:07:03	today
00:07:01	00:07:04	but as soon as i started building a
00:07:03	00:07:07	brand present
00:07:04	00:07:09	and started seeing recurring revenue
00:07:07	00:07:10	and sales then i started to kind of
00:07:09	00:07:13	shimmy people over
00:07:10	00:07:15	to my own website my shopify store and
00:07:13	00:07:17	the reason being is because again i have
00:07:15	00:07:19	higher profit margins there
00:07:17	00:07:20	but also more importantly i have more
00:07:19	00:07:22	control and
00:07:20	00:07:24	on amazon at the end of the day you
00:07:22	00:07:27	don't own the amazon platform
00:07:24	00:07:28	i mean tiknically you don't i mean i'm
00:07:27	00:07:30	a stokholder but
00:07:28	00:07:32	i don't really own it they could ban my
00:07:30	00:07:34	listing they could
00:07:32	00:07:35	take me away from amazon at any point in
00:07:34	00:07:36	time
00:07:35	00:07:38	and so there's a lot of uncertainty with
00:07:36	00:07:39	that doesn't mean that you shouldn't get
00:07:38	00:07:42	started with that there's still
00:07:39	00:07:42	the the benefits outweigh the risks with
00:07:42	00:07:45	amazon
00:07:42	00:07:47	in my opinion but at some point in time
00:07:45	00:07:48	you want to not have all your eggs in
00:07:47	00:07:51	one basket and so that's why i
00:07:48	00:07:53	opened up a shop shopify store and i've
00:07:51	00:07:54	benefited from it greatly because as you
00:07:53	00:07:58	can see
00:07:54	00:07:59	we've got 66 margins on shopify
00:07:58	00:08:01	so those are my margins and i know a lot
00:07:59	00:08:02	of you guys have been asking about that
00:08:01	00:08:03	and i've
00:08:02	00:08:05	shared it many times but it seems like
00:08:03	00:08:07	no matter how much i share this people
00:08:05	00:08:08	always question what my margins are
00:08:07	00:08:11	because
00:08:08	00:08:12	of the sales that i'm having so now let
00:08:11	00:08:15	me show you how
00:08:12	00:08:17	you can calculate your profit margins uh
00:08:15	00:08:18	for your product if you're selling on
00:08:17	00:08:21	amazon
00:08:18	00:08:24	okay so now we are going to calculate
00:08:21	00:08:26	our profit margins for a product that we
00:08:24	00:08:29	are going to look at on amazon
00:08:26	00:08:31	this is a a spreadsheet that jungle
00:08:29	00:08:32	scout has created it's free i'm going to
00:08:31	00:08:33	link it down the description box for you
00:08:32	00:08:34	guys
00:08:33	00:08:36	you can download it and then you can
00:08:34	00:08:38	input your own data here
00:08:36	00:08:41	so that you can just determine your
00:08:38	00:08:43	gross profit and net profit margins okay
00:08:41	00:08:46	we're going to come back to this though
00:08:43	00:08:48	we don't need this right now okay so
00:08:46	00:08:50	when you are first doing your product
00:08:48	00:08:53	research you're not
00:08:50	00:08:56	going to really have a truly accurate
00:08:53	00:08:56	idea of what the profit margins are for
00:08:56	00:08:58	that product
00:08:56	00:09:00	because it's not until you actually
00:08:58	00:09:02	contact the in
00:09:00	00:09:03	the suppliers themselves and find out
00:09:02	00:09:05	the
00:09:03	00:09:06	actual cost per unit depending on what
00:09:05	00:09:09	your
00:09:06	00:09:10	the order quantity is depending on any
00:09:09	00:09:11	customization that you're doing all of
00:09:10	00:09:14	those
00:09:11	00:09:16	details so when we're first doing our
00:09:14	00:09:18	product research we are just getting a
00:09:16	00:09:20	rough estimate on the profit margins
00:09:18	00:09:21	and so this is how you do it you pick
00:09:20	00:09:22	your product say for example i want to
00:09:21	00:09:24	sell
00:09:22	00:09:26	these dog shoes and the selling price is
00:09:24	00:09:27	24.99 so then i'm going to open up
00:09:26	00:09:28	another spreadsheet i'm just going to
00:09:27	00:09:30	put that in there
00:09:28	00:09:31	and then what i'm going to do is i'm
00:09:30	00:09:33	going to look for this product i'm going
00:09:31	00:09:35	to look for supplies for this product
00:09:33	00:09:37	i'm going to do it on alibaba you do it
00:09:35	00:09:40	where you want to do it
00:09:37	00:09:42	and i'm going to try and find similar
00:09:40	00:09:46	products on alibaba
00:09:42	00:09:46	maybe i'll type in dog boots
00:09:48	00:09:52	okay so again there's going to be style
00:09:50	00:09:53	differences but you're going to try and
00:09:52	00:09:56	get the ones that are as
00:09:53	00:09:58	similar as close as possible to the one
00:09:56	00:10:00	that is selling on amazon
00:09:58	00:10:02	which might take a bit of time but for
00:10:00	00:10:04	the sake of this example i don't want to
00:10:02	00:10:05	go through pages and pages to find
00:10:04	00:10:07	identikal boots
00:10:05	00:10:09	i'm just going to pick ones that are you
00:10:07	00:10:12	know somewhat similar so let's just say
00:10:09	00:10:13	for example here we have between five
00:10:12	00:10:15	and eight dollars so what you're going
00:10:13	00:10:18	to see on alibaba is
00:10:15	00:10:20	there's going to be this this gap in the
00:10:18	00:10:21	pricing sometimes it's a wide gap you
00:10:20	00:10:23	know
00:10:21	00:10:25	five dollars is probably what they would
00:10:23	00:10:26	charge you if you're gonna order a large
00:10:25	00:10:27	quantity from them
00:10:26	00:10:29	eight dollars is probably what they're
00:10:27	00:10:30	going to charge you if you're going to
00:10:29	00:10:32	order a small quantity from them the
00:10:30	00:10:35	minimum order quantity
00:10:32	00:10:36	however once you contact suppliers
00:10:35	00:10:39	oftentimes
00:10:36	00:10:40	the actual price is so far off from what
00:10:39	00:10:43	they list
00:10:40	00:10:45	on alibaba that you know that's why you
00:10:43	00:10:48	have to contact the suppliers
00:10:45	00:10:49	but sometimes they are quite accurate so
00:10:48	00:10:50	we're going to try and find the average
00:10:49	00:10:55	price for these
00:10:50	00:10:59	so for example between 270 and 317
00:10:55	00:11:02	so let's just say like three bucks
00:10:59	00:11:07	so you can put three here between
00:11:02	00:11:07	five and eight so let's just say
00:11:09	00:11:18	six between 140 and 160
00:11:13	00:11:18	that's fairly similar so let's just say
00:11:18	00:11:22	150 oops
00:11:23	00:11:25	so you can do this in your mind or you
00:11:24	00:11:27	can write it down if you want to be more
00:11:25	00:11:28	accurate and so just pick like five or
00:11:27	00:11:31	six
00:11:28	00:11:33	of the products um that are similar to
00:11:31	00:11:36	your product on amazon you want it to be
00:11:33	00:11:37	as close as possible so this is 170 to
00:11:36	00:11:42	190.
00:11:37	00:11:44	so let's just say 180 is the the average
00:11:42	00:11:46	okay and so what you want to do after
00:11:44	00:11:47	you do that again this is super
00:11:46	00:11:48	inaccurate
00:11:47	00:11:51	is you want to kind of remove the
00:11:48	00:11:53	outliers so remove the the lowest price
00:11:51	00:11:56	and remove the highest price
00:11:53	00:11:59	so for example in this case um you know
00:11:56	00:12:01	3 is the lowest 180 is the highest so i
00:11:59	00:12:03	could remove both of these
00:12:01	00:12:04	and then i'm going to take the average
00:12:03	00:12:08	of these two
00:12:04	00:12:08	so the average is 375.
00:12:08	00:12:12	so now to calculate my gross profit
00:12:10	00:12:15	margins i could do
00:12:12	00:12:18	the math by doing
00:12:15	00:12:22	24 99
00:12:18	00:12:26	minus 3 75
00:12:22	00:12:30	is i would make a 2124 profit margin
00:12:26	00:12:35	divided by 24.
00:12:30	00:12:38	99 times 100.
00:12:35	00:12:39	so this is telling me that i would make
00:12:38	00:12:42	an 84
00:12:39	00:12:43	gross profit margin now this is
00:12:42	00:12:46	extremely rough
00:12:43	00:12:48	because the truth is that gross profit
00:12:46	00:12:51	margin is not
00:12:48	00:12:53	just the cost of the product
00:12:51	00:12:54	uh the selling price minus the cost of
00:12:53	00:12:57	the product
00:12:54	00:12:58	gross profit margin is this the cost of
00:12:57	00:13:01	the product
00:12:58	00:13:02	and the cost of goods sold which
00:13:01	00:13:04	includes cost of the product cost of
00:13:02	00:13:07	goods sold is how much money
00:13:04	00:13:08	you had to pay from getting that product
00:13:07	00:13:11	from the manufacturer
00:13:08	00:13:12	to your final destination your warehouse
00:13:11	00:13:16	so
00:13:12	00:13:19	how about product packaging how about
00:13:16	00:13:22	assembly how about barcodes how about
00:13:19	00:13:23	inspection agency how about shipping how
00:13:22	00:13:25	about taxes like
00:13:23	00:13:27	that's all part of the cost of goods
00:13:25	00:13:29	sold if you look at my original
00:13:27	00:13:31	cost analysis here you'll see here that
00:13:29	00:13:34	my total cogs
00:13:31	00:13:36	is 1877 even though the actual product
00:13:34	00:13:39	cost is 8.29
00:13:36	00:13:41	so you have to include all of this stuff
00:13:39	00:13:42	and you don't have that information
00:13:41	00:13:45	right now
00:13:42	00:13:47	so this gives you a rough idea but then
00:13:45	00:13:48	what you want to do once you've narrowed
00:13:47	00:13:50	down your list
00:13:48	00:13:52	to like your top three products is you
00:13:50	00:13:55	start to contact suppliers
00:13:52	00:13:57	okay so right now i'm on my alibaba and
00:13:55	00:13:59	this is a real conversation that i had
00:13:57	00:14:00	with a supplier i was interested in a
00:13:59	00:14:01	product so i reached out to them i said
00:14:00	00:14:03	hi there
00:14:01	00:14:04	i own the company lux curves we're in
00:14:03	00:14:06	the body shape or space and looking to
00:14:04	00:14:08	expand our product line
00:14:06	00:14:09	i'm interested in this product however i
00:14:08	00:14:11	want to see better images
00:14:09	00:14:13	not rendered and i want to know the
00:14:11	00:14:15	materials of the shorts i also want to
00:14:13	00:14:16	know if you can make larger sizes than
00:14:15	00:14:19	large such as
00:14:16	00:14:22	2xl and 3xl finally what is your moq
00:14:19	00:14:24	which stands for minimum order quantity
00:14:22	00:14:26	and pricing tiers
00:14:24	00:14:27	and the reason i said price pricing
00:14:26	00:14:31	tiers is because
00:14:27	00:14:32	if you order 500 units your products are
00:14:31	00:14:35	going to be
00:14:32	00:14:38	cheaper than if you order only 200 units
00:14:35	00:14:41	so the cost per unit will increase
00:14:38	00:14:42	the fewer units that you order
00:14:41	00:14:44	and then i also said we'd have to get
00:14:42	00:14:46	this product under four dollars a unit
00:14:44	00:14:47	in order to be profitable
00:14:46	00:14:49	um you don't need to include that that
00:14:47	00:14:51	was just me um being
00:14:49	00:14:52	partikular um so then they respond yes
00:14:51	00:14:55	we do have this
00:14:52	00:14:56	and then they give you the real like the
00:14:55	00:14:58	real product costs
00:14:56	00:14:59	um and so for example you can see here
00:14:58	00:15:01	that
00:14:59	00:15:03	here i could see the actual product
00:15:01	00:15:04	costs that they have
00:15:03	00:15:07	and i did not continue the conversation
00:15:04	00:15:09	with the supplier however at this point
00:15:07	00:15:12	what i would have done is asked okay
00:15:09	00:15:15	now what's the minimum order quantity um
00:15:12	00:15:17	they didn't mention that and if i order
00:15:15	00:15:20	500 units how much is this product going
00:15:17	00:15:22	to cost me
00:15:20	00:15:24	and that way with that information now i
00:15:22	00:15:26	know how much the actual product
00:15:24	00:15:28	cost is and then what i would do is i
00:15:26	00:15:32	would input that information into
00:15:28	00:15:36	my spreadsheet not this one
00:15:32	00:15:36	into the one from jungle scout
00:15:37	00:15:41	not this one don't you hate that
00:15:40	00:15:43	i'm trying to look for a spreadsheet and
00:15:41	00:15:45	you can't find it so here we have a lot
00:15:43	00:15:46	of different different pieces of
00:15:45	00:15:48	information again i'll link this in the
00:15:46	00:15:50	description box for you guys
00:15:48	00:15:52	um so if i found out that the product
00:15:50	00:15:55	costs
00:15:52	00:15:55	okay so if i have a thousand units
00:15:56	00:16:01	okay cost of goods sold so here it's
00:15:58	00:16:01	250.
00:16:02	00:16:05	and basically you just input that
00:16:03	00:16:07	information into the spreadsheet and
00:16:05	00:16:11	that's going to help you determine
00:16:07	00:16:13	what the costs are okay and
00:16:11	00:16:16	and that's really all there is to it
00:16:13	00:16:18	right now um
00:16:16	00:16:20	again you you do need to know what these
00:16:18	00:16:22	the profit margins are before you move
00:16:20	00:16:25	forward with a product
00:16:22	00:16:26	if you don't and if you're guessing then
00:16:25	00:16:29	it's risky
00:16:26	00:16:30	and with e-commerce especially selling
00:16:29	00:16:33	on amazon you want to make sure that
00:16:30	00:16:37	you're having at least a 25
00:16:33	00:16:38	profit margin and that's because
00:16:37	00:16:41	you know it can be expensive to sell on
00:16:38	00:16:44	amazon again it's worth it it's it's
00:16:41	00:16:46	really necessary but
00:16:44	00:16:48	it can be expensive because fulfilled by
00:16:46	00:16:49	amazon is not the cheapest way to
00:16:48	00:16:50	fulfill your products
00:16:49	00:16:53	so you want to make sure that you are
00:16:50	00:16:55	profitable if you are to sell on amazon
00:16:53	00:16:57	um and and that's really all there is to
00:16:55	00:16:58	it guys so hopefully that was helpful
00:16:57	00:17:00	for you guys
00:16:58	00:17:01	um just to summarize you know if you're
00:17:00	00:17:03	selling on amazon you want profit
00:17:01	00:17:06	margins of at least
00:17:03	00:17:08	25 percent nothing under you want to
00:17:06	00:17:11	look for products between 15
00:17:08	00:17:11	and 70 and you just want to understand
00:17:11	00:17:13	that
00:17:11	00:17:14	yes amazon's going to be more expensive
00:17:13	00:17:16	to sell on but
00:17:14	00:17:18	it's going to help you build a brand
00:17:16	00:17:20	from nothing
00:17:18	00:17:22	you know from the bottom up you're going
00:17:20	00:17:24	to be able to reach so many people that
00:17:22	00:17:26	you just would struggle to reach if you
00:17:24	00:17:27	were just selling on your website
00:17:26	00:17:29	you would have to do a lot more
00:17:27	00:17:30	marketing if you're just selling on your
00:17:29	00:17:32	website so in my opinion
00:17:30	00:17:34	it's worth it and there's just so many
00:17:32	00:17:37	people signed up with amazon
00:17:34	00:17:40	that it just makes it so much more easy
00:17:37	00:17:41	to to reach people so that's it for
00:17:40	00:17:45	today if you guys want the
00:17:41	00:17:46	jungle scout fba calculator the pdf you
00:17:45	00:17:47	can click the link down below to
00:17:46	00:17:49	download that
00:17:47	00:17:51	if you guys want to try jungle scout i
00:17:49	00:17:53	highly recommend it for product research
00:17:51	00:17:54	if you are just starting your amazon
00:17:53	00:17:55	business and you're diving into product
00:17:54	00:17:57	research
00:17:55	00:17:59	you need to get jungle scout everyone
00:17:57	00:18:01	has jungle scout these days
00:17:59	00:18:02	so i'll link that down below with a
00:18:01	00:18:04	discount code if you use my affiliate
00:18:02	00:18:09	link tatiana james.com
00:18:04	00:18:12	jungle scout you can get 30 off your
00:18:09	00:18:13	your membership with jungle scout and
00:18:12	00:18:14	then other than that guys if you want to
00:18:13	00:18:17	learn more about
00:18:14	00:18:18	selling on amazon i do have a free
00:18:17	00:18:22	training series
00:18:18	00:18:24	you can go to tatianajames.com fba
00:18:22	00:18:25	to to get those video trainings which is
00:18:24	00:18:27	basically going to give you an overview
00:18:25	00:18:29	of what it means to become an amazon
00:18:27	00:18:30	seller what it means to sell on amazon
00:18:29	00:18:33	and have this
00:18:30	00:18:34	business what does this world look like
00:18:33	00:18:35	so if you're interested in that
00:18:34	00:18:39	click the links in the description box
00:18:35	00:18:39	below take care