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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

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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

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