Selling goods on Amazon’s cross-border e-commerce platform will definitely involve profits, which is the merchant’s return on investment. Only with a high return on investment can it continue to operate. So how to calculate the profit of product selection on the Amazon platform? Novice sellers can learn about it based on the content of this article.
I believe that novice sellers have a certain understanding of the concept of profit margin. They must have calculated the profit margin in the early stage of product selection. After the store operation enters the mature stage, it will inevitably incur costs such as warehousing, returns, and advertising. These costs They all belong to operating costs. The profit rate is calculated by dividing the overall profit by the overall sales.
No matter what industry you are engaged in, its main purpose is to increase assets by obtaining profits, so the profit calculation of Amazon product selection is what sellers should be concerned about, and it is also what a professional investor should consider, and the calculation Product selection profit is the overall profit divided by the cost. Now that we know how the profit of product selection is calculated, what are the costs of opening a store on the Amazon platform?
The cost of opening a store mainly involves product payment and logistics costs. It also includes Amazon store monthly rent, company opening, trademark registration, advertising and promotion, etc. Compared with product payment and logistics costs, the store The monthly rent and other expenses are relatively low. Taking only the payment and first-leg logistics costs as an example, let’s briefly calculate the profit calculation method of product selection.
For example, if a merchant’s investment is 500,000 yuan, the bulk of the expenses are product payment and logistics costs, and the monthly profit is 50,000 yuan, then the merchant’s monthly return on investment is 10%. , the annual return on investment is 120%, and the profit that can be obtained after such product selection is considered very good.
Of course, the cost certainly includes not only payment and logistics costs, but also many other investments. Generally speaking, it is not too difficult for Amazon sellers to calculate the profit of product selection. However, in fact, how to better control costs, increase profits and obtain higher financial returns during store operations is very challenging. Because this requires sellers to make correct decisions in many aspects, such as formulating accurate pricing strategies, accurately grasping product procurement costs, warehousing and logistics costs, advertising and marketing costs, etc., and ensuring that these costs are consistent with actual sales revenue match to ensure the sustainable development of the enterprise.