When doing Amazon cross-border, everyone is most concerned about the profit of products. Many sellers often make mistakes in calculation when selecting products, resulting in a part of the money they should have earned. Today, this article from Xingtaohui teaches you how to make zero mistakes. Calculate selections.
1. Proportion of product cost:
This is generally set at 22%-25%. The seller makes calculations and adjustments according to their own definition of gross profit, product cost / selling price × 100%, this value can directly determine whether the price is reasonable. For example, if the cost is around 37%, it means that the proportion of product cost is too high, and such products are suitable for clearing inventory and flushing sales.
2. Proportion of first-way freight:
The proportion of first-way freight can be set at 5%-7%, using the product first-way freight / sales price × 100%, you can judge whether the freight is reasonable according to this value, of course, a product is best multi-channel transportation, according to this formula Pricing is better for the seller's capital turnover, but the most important thing is to judge it in combination with the gross profit of the product.
3. Percentage of refund fees:
This is generally controlled within 5% . Here we can judge whether our products are suitable for continued sales, and it is also convenient for us to make improvements to our products.
Fourth, the proportion of storage fees:
If the main products sold are small products, the storage fee is almost negligible, mainly for larger products, which are generally controlled at 2.5%. If the storage fee is too high, the price will be reduced because of the desire to speed up sales. Xingtaohui recommends that you do not send too many goods at one time. Sending too many goods will not only cause inventory backlogs, but also disrupt capital turnover.
5. Warehouse age:
This must be taken very seriously. Once the product has been unsalable for a long time and the inventory age exceeds 120 days, it is necessary to consider whether it is the problem of the product itself or whether there is too much stock. If the latter is fine, it is only a matter of time before it is sold. If it is the former, immediately reduce the profit and sell it immediately, so as to make a little less, not to lose all.
Under normal circumstances, the net profit is generally about 40-70 of the sales, and the profit will be higher if the selection is good.