Best way to work out potential profit of an item
Im interested as to how most people work out net profit before deciding on whether to purchase stock?
At the moment Im not vat registered & do this:
Selling price - item cost + Estimated FBA fees (seller app) + p&p (from me to amazon) + 20% tax
Does this seem like the closest way to estimate profit?
Also does everyone use the amazon seller app mainly to estimate fba fees?
Best way to work out potential profit of an item
Im interested as to how most people work out net profit before deciding on whether to purchase stock?
At the moment Im not vat registered & do this:
Selling price - item cost + Estimated FBA fees (seller app) + p&p (from me to amazon) + 20% tax
Does this seem like the closest way to estimate profit?
Also does everyone use the amazon seller app mainly to estimate fba fees?
2 replies
Seller_7VbclcPFFRTnc
Forget your tax at the moment as you can look at that at the end
But you need to add on 20% onto the fba fee for vat
As you are not vat registered, make sure you use the total prices not net prices (from your supplier invoices)
As stated on your other thread, there will of course be other costs you will have to factor in afterwards for your overheads - including the £30 monthly fee
I don’t use the seller app at all but always know roughly what something will cost me due to the fact I list the same sort of products (category)
However, as soon as you list it, it will tell you on your inventory page what the fees will be (just remember to add vat to it)
