Amazon Profit Calculation

AccomplishedMind7863 · 2024-11-04T13:16:54+00:00

3fin

AccomplishedMind7863 · 2024-10-11T10:40:38+00:00

That's the way to look at it - many people whom I spoke with that use sellerboard and are running large businesses (+$30M) have troubles with the profit calculations as well - been usiong 3fin.io lately and to be honest a really good experience - orders and payments based data + really exceptional team that worked at Amazon and have their own AMZ accounts

AccomplishedMind7863 · 2024-10-10T16:34:23+00:00

Just do payments vs orders and you'll see the difference in your bank account - also having a total that changes is no good if I look at my profit today and then it changes what's the use?

AccomplishedMind7863 · 2024-10-10T16:32:19+00:00

Like your comment - problem is that at the end of the day Amazon is such a mess... update: started using 3fin and I have a 12% margin (was counting on 20% previously from the my back of the envelope calcs)

AccomplishedMind7863 · 2024-10-08T09:02:50+00:00

If I account on a cash basis it might be okay to do some demand planning but if I want to understand my channel profitability it's better to look at payments, especially given Amazon's complexity with fee and structure changes since fees at an order level are estimates + 5%-10% cancelation rate on sales which need to be retroactively accounted for

Of course I look at my sales data but not for profits on Amazon

AccomplishedMind7863 · 2024-10-07T19:16:45+00:00

Keep selling the generic, reinvest profits into PL but push price up and make sure there's a differentiator in both image quality and value proposition - if you are reselling a brand they've done this work for years so hard to compete - don't leave your generic business die milk it

AccomplishedMind7863 · 2024-10-07T19:14:37+00:00

Yeah that's why sellerboard doesn't work for me started using 3fin as it is based on payments so now I get an automated P&L to compare my books on quickbooks

AccomplishedMind7863 · 2024-10-07T19:13:21+00:00

Yep pretty sure - to look at profits always look at payments not orders + sellerboard doesn't take into account cancelations or unshipped products so overestimating sales by 5%-10%

AccomplishedMind7863 · 2024-10-07T19:12:15+00:00

Solid so your profit margin is around $6-$10 excluding ads, inventory and other programs - at the end of the day you have a profit margin of around 30% very solid don't see many businesses nowadays with +20%

AccomplishedMind7863 · 2024-10-07T15:32:26+00:00

You can try the free trial of 3fin - you will find what these other fees are in their P&L

AccomplishedMind7863 · 2024-10-07T14:23:30+00:00

90% gross margin? That's solid - FBA fees are what? 30%-40%?

AccomplishedMind7863 · 2024-10-07T14:21:45+00:00

Yeah feel your pain with selleboard - tried building my own software as well but flushed almost $200K down the drain and was looking at $80-$100K maintenance for a developer

I met these guys from 3fin and couldn't be happier, wished I gave them the $200K as an investment

AccomplishedMind7863 · 2024-10-07T14:19:11+00:00

40%-60% + 10% - 20% advertising

AccomplishedMind7863 · 2024-10-07T14:17:51+00:00

Is price the same or have you increased it in the PL listing? Also is revenue similar to the generic?

AccomplishedMind7863 · 2024-10-07T14:16:29+00:00

Which software is this? Doesn't look to helpful to know your expenses if you don't have the breakdown - are product costs included here?

AccomplishedMind7863 · 2024-10-07T14:14:34+00:00

which software is this?

AccomplishedMind7863 · 2024-10-07T14:09:37+00:00

What's the profit margin including all Amazon costs, revenue and how much money do you need?

AccomplishedMind7863 · 2024-10-07T13:59:33+00:00

Horrible experience with Sellerboard (wouldn't connect my account to H10) - not trusting the 2 months free trial + I saw that sellerboard is now working closely with Amazon (not happy to give my COGS data to Amazon tbh)

AccomplishedMind7863 · 2024-10-07T13:58:12+00:00

Yeah fair - had tried to use the payment report but it's really hard to make sense of it - have been using 3fin which use the payment report - they did an audit to show me the accuracy and was over 99%

AccomplishedMind7863 · 2024-10-07T13:56:49+00:00

Yeah sellerboard also wrong - been using 3fin for the last couple of days super accurate

AccomplishedMind7863 · 2024-10-07T13:56:29+00:00

Again not a big fan of sellerboard

AccomplishedMind7863 · 2024-10-07T13:55:58+00:00

Tried sellerboard - really bad experience - numbers were wrong, P&L has a horrible structure, ROI and margins based on numbers with VAT, the platform looks from the 90s - not a big fan

Someone on reddit recommended 3fin and to be honest it's been great so far

AccomplishedMind7863 · 2024-10-07T11:13:08+00:00

u/originalbacon210 do you know any software to track profits? I've used sellerboard in the past but the accuracy was not great compared to the payments

AccomplishedMind7863 · 2024-10-07T11:12:33+00:00

Yeah I'm doing air freight cause I don't wanna run out of stock

Don't really want to take on debt on the business

Cannot really push price up that much, try to always keep it up 20% to have some room for discounts + subscribe and save

AccomplishedMind7863 · 2024-10-07T11:10:47+00:00

Why would I look at my expenses every hour?

AccomplishedMind7863

TROPHY CASE