Good stuff, and thanks for all your work. I think it is important for viewers to understand that you are analyzing for Gross Profit Margin. Net Profit Margin, taking out for operating overhead (including taxes, shipping from 3rd party warehouse, storage, rent, legal, insurance, interest, utilities, etc.) is the make or break margin in the long run. This is what goes into the owner's pocket and determines if they survive. I'd love to see studies on the Net Profit of Amazon sellers if they exist.
Cheers for another very helpful walk-through. I've sold books etc on Amazon but about to send in my first "product" shipment. Aiming to get 150K a year in sales eventually!
Very informative video thank you, I'm also running PPC on a product but have no idea how to calculate this payment; I always think Amazon deducts more money from me for reasons I don't understand. But, thanks to this video, Amazon has proven that I am incorrect in my calculations. Thank you very much.
I'm 58 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, we are finding it impossible to replace it. We can get by, but cant seem to get ahead. My condolences to anyone retiring in this crisis, 40years nonstop just for a crooked system to take all you worked for
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it. "You're not going to remember those expensive shoes you bought ten years ago, but you will remember every single morning when you look at your bank account that extra 0 in there. I promise, that's going to be way more fun to look at everyday", I pray that anyone who reads this will be successful in life
In the sales report are the return units being deducted from the total sold unit or not If not then we have to deduct the returned units to calculate actual cogs
Hi Dan, Units sold from the business report doesn''t include the returned units while payment revenue and expense include returned revenue and its fee. Isnt' it?
Amaya you will find the number of units sold for each of them in the same time period. Then for each, find the landed cost (manufacturing and shipping cost) Then for each, find the COGS (landed cost x number of units sold) Add all the COGS together = total COGS
Hi Thanks for the information, but how about refunds and adjustment, for the refunds amazon do deducted the amount at the same time add inventory into the stock , so in other words if you have sold 10 units and you got 2 refund, then net sales would be 8 units don't you think ?
Another super impressive video Dan. So detailed and incredibly well explained! By the way, I am using Osome to switch my business from Sole trader to Limited, and indeed, they are Osome! Off topic question: In one of your videos, you mentioned a Chinese company that consolidates samples bought from Alibaba, and that company sends all samples at once. Could you share (again) the name of that company please? Thanks a lot!
Thanks for the vid Dan. I have a question about why my net proceed is decrease day by day? I am selling my product every single days and I know apprx 16days after the money will be free from Account reserved. However, I do not understand why net proceed decrease. frustrating to see it goes down until payment day..
Question: At step 4, after we deduct the expenses from the income, the result is $15,571.64 but the figure at "Transferred" shows $22,018.39. Could you please advise the reason for this difference?
Thanks Dan, would you help me with calculating number? I'm getting confused with the numbers from your calculation and SKU Economics, profit gap is so BIG. From your calculation profit margin is 27% while SKU economics is 31%. Income (date range report) and Total product sales(business report) numbers are so different.
Thanks Dan very informative video. Keep them coming. You were the first person I started watching when I was thinking about entering the FBA space a year ago or so. On my report I have "0" on my cost of advertising line- I am definitely spending money on PPC do you know why it would not be showing up here. It's hard to use this report to generate profitability if the numbers aren't accurate? any thoughts??
Hey phatorah, are you looking at the most recent report? It sounds like it's the dates, because the most recent one might not yet have an ad amount there until the advertising period is complete.
Good question Bryan! Although you may be using FBA to fulfill products and offer Prime shipping some customers do not have Prime buyer accounts or may even buy your product from abroad. If those customers buy your product which costs $30, Amazon tacks on a shipping charge for the non-prime customer based on distance and this amount is also added to the sale (eg. $6), meaning you earn a total sale of $36. These additional shipping charges are what you see accrued here as "Shipping" in the blue section and are part of seller revenue. For fulfilling those orders, Amazon will charge you as the seller the normal agreed FBA fee (eg. $6) - So this comes off in the red section ($36 - $6 = $30) and ultimately you make your full price sale while Amazon covers their fulfillment costs to customers who are not paying for prime accounts.
@@DanRodgers thank you for the detailed response! That makes sense, so it’s not any actual added income and it ends up being taken by Amazon. Interesting that they even make us a middle man for that.
So with $3,500 investment and profit $2000 out if it, it's fair but if I have to reinvest $3,500 again then I'm at $1k loss. When do i actually start making that surplus when Amazon fees are eating up everything?
Finally. Waiting for this one for a long time.
Explained in a simplified way, appreciated!
Very good to see Dan the Amazon FBA OG getting sponsors now
I rarely leave a comment.. but this is JAM!! thanks Dan :)
Good stuff, and thanks for all your work. I think it is important for viewers to understand that you are analyzing for Gross Profit Margin. Net Profit Margin, taking out for operating overhead (including taxes, shipping from 3rd party warehouse, storage, rent, legal, insurance, interest, utilities, etc.) is the make or break margin in the long run. This is what goes into the owner's pocket and determines if they survive. I'd love to see studies on the Net Profit of Amazon sellers if they exist.
Cheers for another very helpful walk-through. I've sold books etc on Amazon but about to send in my first "product" shipment. Aiming to get 150K a year in sales eventually!
That's awesome Lew!!
Very informative video thank you,
I'm also running PPC on a product but have no idea how to calculate this payment; I always think Amazon deducts more money from me for reasons I don't understand.
But, thanks to this video, Amazon has proven that I am incorrect in my calculations.
Thank you very much.
Glad it was helpful Henry! I know all the reports can be confusing.
Great content as usual. Thank you!
I'm 58 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, we are finding it impossible to replace it. We can get by, but cant seem to get ahead. My condolences to anyone retiring in this crisis, 40years nonstop just for a crooked system to take all you worked for
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it. "You're not going to remember those expensive shoes you bought ten years ago, but you will remember every single morning when you look at your bank account that extra 0 in there. I promise, that's going to be way more fun to look at everyday", I pray that anyone who reads this will be successful in life
Even with the economic fluctuations, I’m very excited to have earned $45,000 on my $10,000 investment, all thanks to Expert Richard for helping me
@marketsignal_Richard
**Mentorship 👆program consultant **
In the sales report are the return units being deducted from the total sold unit or not
If not then we have to deduct the returned units to calculate actual cogs
Thank you for the detailed explanation ! subscribed
▶ Get the Osome bookkeeping deal: bit.ly/3eYrxCi
The traning site is not working for me
and am want to start sell on amazon but soon i can tell
I paid for best seller squad 5 days ago , still not into the FB group. Not a good start to this membership 😕 😪 😒
In the date range report, What is the last section names "Tax" and where it seems you have credits? Thank you guys for your answers.
Hi Dan,
Units sold from the business report doesn''t include the returned units while payment revenue and expense include returned revenue and its fee.
Isnt' it?
This was a great video and very helpful. Thank you so much
Can you please guide me on how to calculate profit if we selling more than one product
Amaya you will find the number of units sold for each of them in the same time period.
Then for each, find the landed cost (manufacturing and shipping cost)
Then for each, find the COGS (landed cost x number of units sold)
Add all the COGS together = total COGS
amazing explained video, thank you so much
Hi Thanks for the information, but how about refunds and adjustment, for the refunds amazon do deducted the amount at the same time add inventory into the stock , so in other words if you have sold 10 units and you got 2 refund, then net sales would be 8 units don't you think ?
Another super impressive video Dan. So detailed and incredibly well explained! By the way, I am using Osome to switch my business from Sole trader to Limited, and indeed, they are Osome!
Off topic question: In one of your videos, you mentioned a Chinese company that consolidates samples bought from Alibaba, and that company sends all samples at once. Could you share (again) the name of that company please? Thanks a lot!
Hey Remi, thank you sir and sure! That company is TipTrans
@@DanRodgers thanks a lot Dan!
Good explanation
really good infos . and what about launching PL product on very very high campetitive makert , bid us some strategys or also about ads strategys
In the summary report shouldn't the profit value match with the transfer's value after dededucting income with expenses?
Love your videos Dan. How long will it usually take in average after launching the first product?
Thank you Dan. How long will it take to get the first sale?
In the date range report why did you only take number of units sold as 791 and why not also add the 20 B2B units sold? (I am referring to 9:21)
Who is interested in having an Excel sheet on Amazon profitability???
Thanks for the vid Dan. I have a question about why my net proceed is decrease day by day? I am selling my product every single days and I know apprx 16days after the money will be free from Account reserved. However, I do not understand why net proceed decrease. frustrating to see it goes down until payment day..
Question: At step 4, after we deduct the expenses from the income, the result is $15,571.64 but the figure at "Transferred" shows $22,018.39. Could you please advise the reason for this difference?
Thanks Dan, would you help me with calculating number?
I'm getting confused with the numbers from your calculation and SKU Economics, profit gap is so BIG.
From your calculation profit margin is 27% while SKU economics is 31%.
Income (date range report) and Total product sales(business report) numbers are so different.
niceeeeeeeeeeee😍😍
Thanks Dan very informative video. Keep them coming. You were the first person I started watching when I was thinking about entering the FBA space a year ago or so. On my report I have "0" on my cost of advertising line- I am definitely spending money on PPC do you know why it would not be showing up here. It's hard to use this report to generate profitability if the numbers aren't accurate?
any thoughts??
Hey phatorah, are you looking at the most recent report? It sounds like it's the dates, because the most recent one might not yet have an ad amount there until the advertising period is complete.
What is the $166.93 for under “shipping”? I don’t understand why you make profit under shipping if you sell FBA
Good question Bryan! Although you may be using FBA to fulfill products and offer Prime shipping some customers do not have Prime buyer accounts or may even buy your product from abroad.
If those customers buy your product which costs $30, Amazon tacks on a shipping charge for the non-prime customer based on distance and this amount is also added to the sale (eg. $6), meaning you earn a total sale of $36. These additional shipping charges are what you see accrued here as "Shipping" in the blue section and are part of seller revenue.
For fulfilling those orders, Amazon will charge you as the seller the normal agreed FBA fee (eg. $6) - So this comes off in the red section ($36 - $6 = $30) and ultimately you make your full price sale while Amazon covers their fulfillment costs to customers who are not paying for prime accounts.
@@DanRodgers thank you for the detailed response! That makes sense, so it’s not any actual added income and it ends up being taken by Amazon. Interesting that they even make us a middle man for that.
How about VAT and other taxes? And don't forget income tax folks...
So the 7,000 do some people pay themselves that per month or way less ?
Nice
I'm trying to apply on just one dime but unable to signup
Awais, that's odd, thanks for letting me know, I will share this with the team
With my ad spend Dan, im not making anything
Hey gareth! It's one of the biggest pain points for sure, optimizing this is key, I will be sharing some strats for this in a future vid as well
So with $3,500 investment and profit $2000 out if it, it's fair but if I have to reinvest $3,500 again then I'm at $1k loss. When do i actually start making that surplus when Amazon fees are eating up everything?
@Itsandybruh this guy I am talking about I want you to follow his channel.
Who is interested in having an Excel sheet on Amazon profitability???