Professional Documents
Culture Documents
50
39.99
1999.5
COST 25
SHIPPING INT 15
SHIP FBA 6 WEIGHT 3 KG
FEES 10 15% ABOVE 45, 7% BELOW
SELLING PRIC 100
RETURN PERC 35
IMPORT DUTY
**VARIABLE LEAD TIME WITH CONSTAN
Beginning
Amount
Example #1 with 60
Inventory Cost $5,332.00 $5,332
days of total lead
Sales Price $16,764.00 time $12,017
Net Proceeds
Amazon Fees $11,432.00 $27,083
(avg. 15% of sales 125% ROI & 25
price) $4,747.00 Day Lead Time $61,039
Beginning
Inventory Cost $5,332.00 Amount
Example #2 with 45
Sales Price $16,764.00 days of total lead $1,000
Net Proceeds $11,432.00 time $4,000
Amazon Fees
(avg. 15% of sales
price) 4747 125% ROI & 30 $16,000
Net Profit $6,685.00 Day Lead Time $36,000
ROI 125% $81,000
Profit Margin 40% $182,250
$410,063
$922,641
Beginning
Inventory Cost 1.5 Amount
Sales Price 11.99 $3,000.00
Net Proceeds 7 $10,403.00
Amazon Fees
(avg. 15% of sales
price) $1.80 $36,074.14
Profit $3.70 246.77% % ROI & $125,093.08
ROI 246.77% about 30 Day $433,781.10
Profit Margin 30.87% Lead Time
LEAD TIME WITH CONSTANT ROI
**Both examples have about the exact same Profit Margin but e
Beginning
Example #1 Amount
Cost Inventory $3.50 $3,000.00
Sales Price $25.00 180% ROI & $8,400.00
Net Proceeds About 30
After Amazon Day Lead
Fees 13.81 Time $23,520.00
Net Profit $10.31 $65,856.00
ROI 295%
Profit Margin 41%
Example # 2
Beginning
Amount
Cost Inventory $12.20 $7,500.00
Sales Price $39.99 $35,025.00
Net Proceeds
After Amazon 366% ROI &
Fees $13.00 About 30 $163,566.75
Net Profit $0.80 Day Lead $763,856.72
Time
ROI 6.56%
Profit Margin 2%
**With all variables held constant, a 176% and 366% ROI is the difference betw
es illustrate why ROI is important and key to exponetial growth in
your Amazon business NOT margins.
e about the exact same Profit Margin but example #2 has twice the ROI
and 366% ROI is the difference between having $460,992 or $3,567,210 at the end of 172 days