What is a good net profit margin
Is fifteen pounds a good net profit margin? This is just considering basic costs, and excluding any Sales, PPC, Advertising, etc.
8 replies
Seller_j27LWMjJoqueo
I'm going to revise this because I guess it's related to the cost of the product, right?
Seller_fLViBrSW573Aj
More detail needed to answer this! £15 would be a great profit on (for example) a product you sold for £20, but you really need to figure out your costs properly before selling.
I suggest using Amazons revenue calculator tool here: https://sellercentral.amazon.co.uk/revcal
Seller_HmXs9Pk97Wcpt
A very subjective question with many factors to take into account. A good profit is what you determine. I'd think more in % than £ initially. Also do make sure you're calculating your P/L correctly taking into account VAT etc..
Also, make sure you check your transaction view & reports repository periodically as this is the final word on income & expenses.
Seller_Jce4SXtmnEPc2
As others have mentioned, this is quite subjective since different people are comfortable with varying levels of profit. However, my advice is to prepare a profit and loss statement each month. This means keeping your bookkeeping and accounting up to date. Treat this as a priority because regularly reviewing your finances allows you to identify and address any potential issues before they escalate. That’s what I would recommend
Seller_JzVm29bKwifQs
For ecom 5% is considered bad, 10-15% good, 20% and above great. These were from a Shopify report i read last week
