Unit Economics - SellerScale
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SKUInputsCostsProfitability
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Sales PriceDaily Unit SalesACoSPPC Share of SalesDaily Unit Sales
(Promo)
Avg. Promo DiscountUnit Landed CostReferral FeesFBA FeesOther FeesPromo RebatesPPC SpendAmazon FeesMargin $Margin %ROIMonthly ProfitAnnual Profit
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Product 1$30.0011.040%0%0.070%$5.00$4.50$5.85$0.22$0.00$0.00$10.57$14.4348.1%288.6%$4,762$57,143
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Product 2$30.006.050%30%0.070%$8.00$4.50$6.61$0.22$0.00$4.50$15.83$6.1720.6%77.1%$1,111$13,327
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Product 3$39.855.030%10%0.070%$3.00$5.98$5.09$0.22$0.00$1.20$12.48$24.3761.1%812.2%$3,655$43,861
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Instructions:
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- Adjust any of the input metrics on the left, and watch how they impact your profitability variables on the right.
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- Over time, this will help you build a deeper understanding of the profitability potential of specific products - existing ones that you're alraedy selling, as well as potential new products you're thinking of launching.
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- Prior to launching new products, research their numbers, simulate different scenarios, and launch only those products that show the highest profitability potential.
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- Set your prices to those of similar products on Amazon, and see how profitable you can be under reasonable marketing efficiency conditions (e.g. ACoS = 50%, PPC Share of Sales = 30%).
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- Test the impact of different unit landed cost levels on the margin and ROI. Will you be able to substantially improve profitability once you're able to order inventory at scale and get supplier/freight forwarder discounts?
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- Try finding your brekaeven price and ACoS by adjusting the inputs such that they result in a zero margin. You want your breakeven price to be lower than average competitor prices, and your breakeven ACoS to be as high as possible.
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- Keep refining the numbers for both your existing products, as well as potential new ones, until you have developed a deep intuition about the unit economics of your business.
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*** You can access an automated version of this model, along with other financial management tools for Amazon sellers, at
www.SellerScale.com
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