Estimated Margin Calculation

Calculating and comparing your margin across various SKUs is key to managing your profit. RestockPro keeps an up-to-date margin, even allowing you to evaluate the margins on SKUs you previously stocked but are currently out of stock or inactive.

The Estimated Margin Calculation is, in essence, this formula:

Selling Price - Costs - Amazon Fees = Margin

 

Overview of the Calculator

restock-suggestions-calculator-icon The Calculator may be accessed by clicking the calculator icon in the Restock Suggestions grid.

 

The calculation begins with the price of the item, typically your 7-day average sales price. In the My Store page, on the calculations tab, you set the price to be used by putting the available price fields in order of priority. The calculator will attempt to use your top choice if available, then try your second choice, and so on.

restock-suggestions-estimated-margin-calculator

All of the available prices are displayed at the top of the calculator:

restock-suggestions-margin-calculator-price-column
  • 7-Day Average Price: The average price you have sold the item for in the past 7 days
  • New Buy Box Price: The current new buy box price
  • Listing Price: Your current listing price
  • Lowest FBA Offer Price: The lowest price amongst other FBA sellers


Then the calculator subtracts your costs, including:

restock-suggestions-margin-calculator-cost-column-1

 

  • Current Supplier Cost - the current supplier cost set on the product or the average cost based on your purchase order history in RestockPro. This cost basis is set on the Calculations tab of the My Store page.
  • Inbound Shipping Fee - the cost to ship from the supplier as shown on the product details page
  • Reshipping Fee - the cost to ship from your warehouse
  • Repackaging Material Fee - your fee to prep the item to Amazon’s specification
  • Repackaging Labor Fee - your labor cost associated with prepping the item for shipping
  • Supplier Rebates - This lets you account for any discounts you get on a product.

You enter all the costs on the Product page for the SKU in question.

 

Last, Amazon Fees are subtracted from the adjusted cost, including:

restock-suggestions-margin-calculator-amazon-fees-column

 FBA fees, Referral, Monthly Storage Fee, and Variable Closing fee. The Commission and FBA fees are imported from Amazon by RestockPro. The Monthly Storage Fee is calculated based on 30 days storage, according to the fee schedule posted on Seller Central.

All of this gets you the Estimated Margin

restock-suggestions-margin-calculator-results

Next to the Estimated Margin, you'll see your Estimated Margin % (EM%). This represents the margin as a percentage of price, and is calculated by dividing your Estimated Margin by the price.

The last column contains your Estimated Markup, which represents the margin as a percentage of your cost, and is calculated by dividing your Estimated Margin by your Supplier Cost.

These figures give you the information you need to know to make an informed decision about whether or not to restock an item.