After calculation the profit margin shows in negative
Hi Everyone
My question is about VAT.
Registered with 20% VAT but when I find a product and after getting sourcing price and calculate the profit margin it becomes negative can someone explain to me the reason or I am doing some mistake in calculation.
Seller_7VbclcPFFRTnc
You have taken the net sales price - £6.55
minus the fba fee - £3.58
and then minus the gross cost price £3.20 instead of the net cost of £2.67
12 replies
Seller_7VbclcPFFRTnc
Can you give an example
How much does your product cost
What are the amazon fees (fba or fbm)
Whats your selling price
Seller_7VbclcPFFRTnc
Net sales price - 6.55
minus 3.58 fba fee (reverse charge)
minus net cost price 2.67
Total to you 30p
Total to vat man 78p
Seller_STWgthFMdONxi
Yes this is the calculation according to price of the product.
Seller_STWgthFMdONxi
sourcing Price 2.76
20% Input VAT 0.53
FBA Fee 3.58
Output VAT 1.31
Paid to HMRC 0.78
Profit -0.23
ROI -7.3%
This is the calculation i am doing where i am doing mistake while doing calculation
Seller_STWgthFMdONxi
Thank you for you help and solve my issue bundle of Thanks
