Seller Forums
Sign in
Sign in
imgSign in
ForumsHomeDiscussions
ForumsHomeDiscussions
imgSign in
user profile
Seller_vxFdn2285hU3C

Revenue Calculator - Net Margin Confusion?

Hello!

I am a bit confused by the way Amazon calculates the net margin in the Revenue Calculator, as after calculating profit including COGs and fees they then seem to calculate margin as a percentage by Profit / RevenueInclVAT .

So let's say we have an item selling for £8.99 (including VAT) with fees/costs at £2.95 (they seem to include VAT in this calculation) and a profit of 6.04. It is then saying my margin is 67.20%.

This can only work if it's 6.04/8.99 * 100. Should this not be calculated as Profit / RevenueExVAT (or 6.04/7.49 * 100)?

53 views
1 reply
00
Reply
user profile
Seller_vxFdn2285hU3C

Revenue Calculator - Net Margin Confusion?

Hello!

I am a bit confused by the way Amazon calculates the net margin in the Revenue Calculator, as after calculating profit including COGs and fees they then seem to calculate margin as a percentage by Profit / RevenueInclVAT .

So let's say we have an item selling for £8.99 (including VAT) with fees/costs at £2.95 (they seem to include VAT in this calculation) and a profit of 6.04. It is then saying my margin is 67.20%.

This can only work if it's 6.04/8.99 * 100. Should this not be calculated as Profit / RevenueExVAT (or 6.04/7.49 * 100)?

00
53 views
1 reply
Reply
1 reply
Follow this discussion to be notified of new activity
user profile
Seller_vxFdn2285hU3C

Revenue Calculator - Net Margin Confusion?

Hello!

I am a bit confused by the way Amazon calculates the net margin in the Revenue Calculator, as after calculating profit including COGs and fees they then seem to calculate margin as a percentage by Profit / RevenueInclVAT .

So let's say we have an item selling for £8.99 (including VAT) with fees/costs at £2.95 (they seem to include VAT in this calculation) and a profit of 6.04. It is then saying my margin is 67.20%.

This can only work if it's 6.04/8.99 * 100. Should this not be calculated as Profit / RevenueExVAT (or 6.04/7.49 * 100)?

53 views
1 reply
00
Reply
user profile
Seller_vxFdn2285hU3C

Revenue Calculator - Net Margin Confusion?

Hello!

I am a bit confused by the way Amazon calculates the net margin in the Revenue Calculator, as after calculating profit including COGs and fees they then seem to calculate margin as a percentage by Profit / RevenueInclVAT .

So let's say we have an item selling for £8.99 (including VAT) with fees/costs at £2.95 (they seem to include VAT in this calculation) and a profit of 6.04. It is then saying my margin is 67.20%.

This can only work if it's 6.04/8.99 * 100. Should this not be calculated as Profit / RevenueExVAT (or 6.04/7.49 * 100)?

00
53 views
1 reply
Reply
user profile

Revenue Calculator - Net Margin Confusion?

by Seller_vxFdn2285hU3C

Hello!

I am a bit confused by the way Amazon calculates the net margin in the Revenue Calculator, as after calculating profit including COGs and fees they then seem to calculate margin as a percentage by Profit / RevenueInclVAT .

So let's say we have an item selling for £8.99 (including VAT) with fees/costs at £2.95 (they seem to include VAT in this calculation) and a profit of 6.04. It is then saying my margin is 67.20%.

This can only work if it's 6.04/8.99 * 100. Should this not be calculated as Profit / RevenueExVAT (or 6.04/7.49 * 100)?

Create and Manage Listings
Tags:Pricing
00
53 views
1 reply
Reply
1 reply
1 reply
Quick filters
Sort by
Follow this discussion to be notified of new activity
Follow this discussion to be notified of new activity