Home Tech How To Use the Modern amazon profit calculator app To Analyze Profit and Loss

How To Use the Modern amazon profit calculator app To Analyze Profit and Loss

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How To Use the Modern amazon profit calculator app To Analyze Profit and Loss

The ultimate aim of any business owner is to maximize profit. Online shopping has been earning popularity steadily over the past decade. But the demand got sky-high during the Covid- 19 pandemic in 2020. Amazon has been the highest-selling platform globally. Naturally, small businesses and giant brands are gaining huge profits from the platform. However, the need for a well-designed amazon profit calculator app is also high as business organizations are facing trouble in calculating the revenue generation. 

Free apps are not ideal

Although Amazon offers a free FBA calculator, it is not good enough. The app can definitely show you the pre-selling estimations including the referral fee or the monthly FBA storage charges. But that is the limit of the performance. 

Unfortunately, the free apps don’t take into consideration various elements that affect the cost and subsequent revenue generation. Also, the proportional fees lie in the referral fee of Amazon will change once you lower the retail price for promotional purposes or short-term A/B testing. 

Therefore, you have to look for a better application if you want to prioritize selling through Amazon only. 

A quick app

One of the primary requirements from an app that aims to calculate profit on Amazon is the speed of working. If calculation becomes a time-consuming process, then you cannot concentrate on developing better business plans or monitoring the business processes.

  • Every time you want to find the Amazon fee for a product, you have to enter details like product name, ASIN, or the UPC manually. 
  • On calculating, a few bar graphs will show up, representing the FBA fees vs. what you will pay doing FBM or Fulfillment by Merchant which includes the handling and shipping of products by yourself instead of Amazon. 
  • But you can save this impact calculation for future reference. 
  • Each time, you have to enter the details by hand, which will be a time waste.

So, why don’t you start looking for better options? You need applications where it is possible to view the Profit and Loss depending on individual product categories that you created in the Amazon end-to-end analytics tool for the products. 

Need to export data 

Business owners who plan to use the FBA calculator won’t be able to export the calculations in any other file types or as a .csv file type. And it will be an additional task to enter the individual fee separately in a spreadsheet when you want to monitor the costs. You won’t be able to calculate the impact of the promotions too.

  • So a better application will help you to store all the information in one place.
  • Moreover, you can also re-calculate the costs to find out the products with higher profit margins during the promotional offers.

You should be able to export the data for further analysis. 

Ease of calculations

One of the primary requirements of the amazon profit calculator app is the convenience of calculation apart from the varied options to calculate. The calculation of Profit and Loss is just the beginning. You can use advanced applications to find out the P&L of a single SKU or multiple SKUs using the options of the application.

You can even select a certain timeline and then calculate the P&L to ensure that you know about the ROI of individual products and their alterations after any special session of the sale. The easier the process of calculation is, the better will be the output from the app. You can actually utilize the results for thorough analysis.

Flexibility

An application becomes popular only when it offers maximum flexibility to the users. needless to say, the modern apps that allow you to do every type of calculation regarding Amazon selling are offering every flexibility to the users. 

  • The app design depends on the perceptions of the sellers. Top designers will always try to implement the ideas that the sellers require for calculating the profit margin on Amazon.
  • You should have the liberty to select the critical keys depending on the nature of the business to find out the P&L. the common elements include Revenue, Orders, Units, Net Profit, COP, Refunds, Returns, Profit margin, Promotions, Total buyers and the list goes on. 

The configurable elements help to ascertain your way of calculation depending on the factors that directly impact your business. For instance, all the products are not returnable. In such cases, you can eliminate the refund category altogether from the main table.

Comparing the product margins

Choose any good application and your Seller Central Account will have a mapping to the Amazon API. It will be able to read the information but won’t have the right to edit or delete any data on your account. It will be simple for fetching data instantly and getting an overview of the business’ performance. 

Thus, you get the best features that will allow you to compare and conclude from the findings of the tool. 

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