Can you tell me the profit
Hi all,
here is an example of a sale. Please can people show their workings on net profit.
sale price on amazon: £9.99
amazon fees: 15%
postage cost: £1 + VAT
product cost: £3 + VAT
pleae base on assumption company is VAT registered
thanks.
0 replies
Seller_mRJYWraPuoVuD
Your postage costs are NOT £1 +vat, your postage costs are…cost of time to process order…cost of packaging…time taken to package item…costs (time/fuel) to take item to post office. SO your REAL postage costs are more like £2 to £2.50.
Seller_amUAzjvL5uIzu
£8.33 -£1-£3-£1.50 = £2.83 less closing fee 75p or proportion of Pro subscription.
Less,as above your time/packaging/office costs etc.
Seller_zDUw7ekrB6OEy
Try the FBA calculator, it also tells you the FBM profits. https://sellercentral.amazon.co.uk/hz/fba/profitabilitycalculator/index?lang=en_GB
Seller_n33KwLeg9XOvi
Net profit - you will never really be able to get an exact figure on an order by order basis - as you have to take into consideration your other operating costs that may not be directly related to fulfilling that one order…
I would say that Gross Profit is a more realistic figure to calculate.
Seller_MDXV06IWlI8ai
Don’t overcomplicate things! This isn’t too difficult:
£9.99 retail price inc VAT, so (9.99/1.2):
£8.33 retail ex VAT
£8.33 minus Amazon’s 15% referral fee (9.99*0.15) = £6.83
Since you’re VAT registered, the cost of postage is just £1 as you reclaim the VAT, same with the cost of the product being £3.
£6.83 minus postage (£1) minus product cost (£3) = £2.83 profit
