You’re in business to make money, and product profitability is the key to doing that. It is an essential aspect of business for you to consider in your day-to-day planning and it ensures that at the end of the day, you cover your costs and have a little bit extra left in your pocket.
The concept is fairly self-explanatory, but guaranteeing profitability is another thing altogether.
As a business owner, you likely have this concept in mind, but do you know how to achieve it? If you can’t properly calculate profitability, then every sale you make might chip away at your overall income.
Those best-selling products that you have – what if they aren’t actually making you any money?
What product profitability involves.
Product profitability is a large part of ensuring sustainable growth, and it comes into play when you price your items for sale, and it covers three essential factors (give or take):
- Raw material
- Time invested
- Fees
Raw Material
We are fairly sure we don’t need to explain this one, because you’re fairly intelligent. This is a calculation of how much you paid to obtain the materials used in your finished product.
Time invested
Covering your materials is one thing, but it doesn’t pay the phone bill. Be fair and make sure you account for how many of your products you can make in one hour, and then calculate yourself an hourly wage.
After all, as your business grows, you may well end up employing someone to do the same job!
Fees
THIS is where it gets interesting. And by interesting, we mean tricky.
With an eCommerce business, there are a number of ways to go about it. Perhaps you will simply offer direct sales through a website, in which case all you need to worry about is packaging, shipping and your website fees.
However if you are selling via Amazon, there are a few more considerations to bear in mind. As an Amazon Seller, there are a number of unique rules and guidelines to stick to, including Amazon Fees.
Calculating profit profitability with Amazon
Amazon Fees are among the charges that are involved with every sale made via Amazon. There could be Fulfilment By Amazon (FBA) charges, as well as many more. What you need is an analytical tool.
A product analysis tool, one that calculates all of the Amazon fees involved, and returns to you the profitability of your items before you set them online.
Product Finder calculates your profits
Well Product Finder is a sophisticated tool that does all that and more.
Our cutting-edge tool from the SuperDisty team is easy-to-use, and guarantees product profitability on every sale made. Simply enter the identifier code of a product, and in moments you receive an in-depth analysis of the product itself.
This document provides:
- Amazon Specific Internal Number (ASIN)
- Brands available
- Buy Box price – learn how to win the buy box here!
- Amazon Referral Fees
- Fulfilment by Amazon (FBA) charges
- Total payout after charges and fees
As well as many others! Your Amazon Payout is one of the most important results that it provides, as that’s what you will be using to guarantee your product profitability!
Being in the eCommerce industry is difficult enough, that’s why we want to make things a little easier and streamline your business. Less hassle, better sales. That’s why we provide cutting-edge tools for SMEs across the globe.
Even more business tools
If you want to take things a step further to boost your sales, and guarantee your business a future, take a look at some of our other tools available. We offer free and easy webstore setups for businesses with our eSuperStore, increased data flow and stronger supply chain functions with our EDI solutions, or our Amazon Market Solutions for Amazon Vendors and Sellers.
Whatever your business is, we have the right fit for you. Make the best choice today for a successful tomorrow, you can always brush up on our guides section to read about how your business can become a roaring success.
SuperDisty – Your passport to online markets
