Getting the profitability right on Amazon can bit tricky sometimes and I have come across many retailers selling massive volume not knowing exactly what sort of profit they are getting.
This is why we have created “True Profit” calculator in collaboration with UK based Amazon Training Specialist www.onlineselleruk.com You can download the file and alter details as necessary. You will also find some helpful links.
Column (H) Amazon Fees: Amazon takes 15% fees on Average and this can vary depending on category you are selling. If you are selling consumer electronics fees are 7% and if you are selling Jewellery fees are 26%. Variance on fees is correlated with margin expected from each category sales.
Column (D) Custom Duty: There is no duty for imports from the EU. Import duties on imports from other countries can be found in .Gov site.
Column (E) VAT on imports: VAT is different on imports from different EU countries. Check a full list << here >>
Column (J) Amazon Sponsored Ads: During product launch Amazon sponsored ads can help get that extra placement which can be helpful to get that initial sales.
Column (L) Loss Leaders: This very normal approach to start getting that initial sales which helps to build your organic ranking.
Column (K) Delivery to FBA: Amazon charges approx £8.00 for delivery to Amazon’s warehouse.
Column (I) Fulfilment By Amazon(FBA): FBA cost varies based on product size and weight. Checkout latest fees << here >> You can also use interactive calculator following this link
Column (M) VAT on Sales: You will be paying out 20% VAT on sales if you are VAT registered. Total VAT payable = VAT on Sales ( M ) - Import VAT ( E )
I hope this calculator helps you estimate your true profit for your new product launch and make that important sourcing decision.
If you have any questions please do get in touch.