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how to estimate profits and pricing of FBA products in Amazon?

Posted on 2022-04-09



What is the general cost of FBA prep shipping; what is the prep shipping fee of FBA; the price of FBA prep in the United States; how to calculate the prep shipping fee of FBA

Today, we are going to talk about how to estimate profits and pricing of FBA products in Amazon. We use the following table to create an estimation table. Ok, LET me take the data of a real product sold in the US as an example to explain


Let's start now. Let's fill in the basic information. First, we can estimate the price at random, for example, 25


Since the delivery usually starts at 100kg, we try to deliver more than 100kg by 100÷ the weekly quantity of each carton 16 and then further round


Get the number of boxes shipped seven and then you can calculate the total weight of the shipment of 112 kilograms and the number of products shipped


So after the basic information of the product is completed, we also need to determine the various rates. First, the exchange rate is 6.36, and then according to the product type, Amazon's sales commission ratio is usually 15%


Refer to this table and determine the amazon logistics fee standard according to the volume of the product. My example is $3.77 for each product


Then, the unit price of the first logistics, for example, shipping by sea is 15 yuan per kilogram. Then, according to different categories, we estimate the return rate, which is about 5%, and the proportion of promotion fee, such as 20%


These two proportions of different products are not the same I here just for example so single cost idiom shipping total can calculate the total purchase cost shipping costs multiplied by logistics unit price even if the head of the total freight add up is the budget of the product


So once we're done with all this information we're going to use this data to make a calculation table and we're going to start with the selling price and we're going to link it to where we entered it and then we're going to change the table up here as well


I'm going to do this separately in terms of dollars and yuan just so that we can be a little bit clearer with the estimate that the dollar cost and the exchange rate get the yuan and then link the cost down


What we just wrote is that the RMB is going to be converted into DOLLARS and then we calculate the total overhead for each product the total overhead freight divided by the total number of shipments


And then we figure out the commission and then we figure out the amazon logistics so we take the selling price minus the cost minus the top layer minus the commission minus the Amazon logistics and we figure out the underlying profit


And then we estimate the return and promotion expenses and then we multiply the return rate and we get the return fee and then we multiply the return fee and then we subtract the return fee and the promotion fee from the base profit and we get our estimated profit and then we basically have our estimated profit so we're done


Profit estimates can be made by changing the basic information and the data in the rates and backtracking the selling price