How to Calculate Amazon FBA Profit ( Free Amazon Course Video 30) Video Lecture | Start an Amazon FBA Store: Learn and Build - Home Business

what's going on guys and welcome back to
my channel in this video I'm gonna be
covering how to calculate profit on
product before or during your inventory
so I did touch on this earlier in my
free Amazon FBA course here but I did
want to bring it up again
and going through it with a separate
video just so you guys can refer back to
it easily just because I thought in this
module where we're talking about
actually negotiating with suppliers you
want to make sure if they offer you a
price that it's actually profitable and
you also want to make sure even before
that if you're thinking about even a
product if you can estimate the price if
it's actually worth it even bother going
into the negotiations so I just wanna
show you guys the quickest way to find
the profit here so I just took a random
listing you're just something that came
up on Amazon as soon as I logged on so
it's some cat ear headphones so what I'm
gonna do here is I'm just gonna go to
Google I'm gonna type in Amazon FBA
calculator and it's gonna be the first
link here at FBA Revenue calculator so
you just click that and then you can see
at the top here it's gonna ask for you
to enter your product information so you
can enter the product name or the a sin
or the UPC for me I choose to enter the
a sin because it's the quickest way I
think so the way you find a sin is just
going on the listing and when you go in
the web address bar up here you can see
right after the name there's gonna be
this I believes nine digit number letter
combination usually starting with a B so
you just take that copy it and bring it
into the FBA calculator so that's gonna
give you the exact product information
so you can see here it's brought out the
exact toy or the exact product sorry you
can see the essence right here the
content mentions based on this product
or here so if you were doing something
very similar or the exact same of course
it's gonna be very accurate and then we
also have the you know weight here which
is gonna be able to help us with
calculating shipping and storage fees so
we're only gonna need to fill out the
Amazon Fulfillment : miss your
fulfillment would be if you weren't had
an Amazon do it anywhere should be it
yourself but since we're I've had an
Amazon fulfill it we just have to follow
fill out these three columns right here
which is very easy so first of all item
price so this is the price that you're
going to be you're going to be charging
your own customers so the actual price
the cost
buying it up so I'm still look at this
one I see that they're charging 2299
maybe we want to have a competitive
advantage obesity we're gonna sell it
for twenty to forty nine so then we're
gonna check out the shipping cost so
this is what I cost us printing at the
ship down is on so once your bulk
shipping price from your supplier you
can break it down organs estimate this
of a mile get you are estimating if not
once you have this quote the shipping
quote from your supplier just break it
down to see what you're paying per unit
for shipping so let's just say we are
paying two dollars per unit for shipping
and the cost of our product let's say it
was three dollars so this is the cost
that you're buying it from your
manufacturer at and this is the cost
that you're paying for shipping to get
it to the Amazon warehouse then we just
press calculate and you're gonna see
it's gonna put in all these numbers for
us so now we can see our revenue per
product
22:49 it of course is our sale price and
you can see if we filled it ourselves
our cost would be four dollars just for
our advertising on Amazon's website and
then we can see here yeah - the Amazon
fees we're gonna be making 1137 oh sorry
it's gonna cost us 11:37 and you can see
the net profit and so on so you can see
the cost breakdown through here as well
you can see our net profit margin here
our net profit is 1122 with a forty nine
point four four percent profit which is
great also taking the consideration
though that you're going to be paying
for PPC advertising so if it's
competitive
leave some budget for that and we
calculate calculate that width in this
as well so maybe for every you can just
calculate your monthly sales and then -
what you expect your monthly advertising
budget to be as well so you can see
what's useful about this tool as well as
you can generate based on the estimated
number of sales so if we knew that this
guy was making 500 sales a month by
running our general scalp Pro extension
on it we could say okay so scales
a month we're going to making and you
can see it'll address all of these
charts for you and give you those new
numbers so we're really useful I really
do like this tool and I do use it but
another tool that I find is a lot
quicker is just using Chrome extension
so going back on the listing here you
guys can download
this Chrome extension I'll leave it as
the first link in the description is
completely free
it's another FBA calculator so I'm just
gonna run this and show you guys how it
looks so right away you can see it
populates all the information very
quickly product size the weight and all
the cost breakdown from the Amazon fees
so now all we're gonna have to do is put
our product cost so let's say shipped
the unit and product together it's gonna
cost us $5 and now you can see based on
that it can generate the estimated
monthly profit the only downside to this
FBA calculator is that it's taking this
578 units so it's only basing these
sales numbers off what this protected
particular seller is asking me to be
selling per month so if you want to
estimate if you're going to be selling
more or less units you would have to use
the fulfillment by Amazon official
calculator but this is a really quick
way just to view products on Amazon
without actually having to open a
separate window just quickly run this
Chrome extension so if you guys liked
that video please give it a thumbs up
always consider your cost of advertising
as well but you know this is how you
guys to make sure that before you order
a product it's actually worth it and if
your supplier gives you a price you can
make sure that it actually works for you
so thank you guys so much for watching
this video in the next video I'm gonna
be covering shipping so yeah until then
I'll catch you guys in the next one