Hey money maestros! So, you've embarked on the grand Amazon adventure, armed with The Wholesale Formula (TWF). I recently unearthed a the wholesale formula review, and there was this shimmering gem: a method to predict your potential monthly profit. No more guessing games, folks! Let’s dive into this treasure and make numbers your best pals.
1. Start with Gross Sales:
Pop quiz! If you sold 100 unicorn mugs at $20 each last month, your gross sales would be...? That's right, $2,000! (Math is fun when unicorns are involved, right?)
Example: Sally, our imaginary seller friend, sold 200 magical spatulas at $15 each. So, her gross sales? A cool $3,000.
2. Deduct Amazon Fees:
Oh, Amazon. They do take their cut. Typically, this is around 15% of your sale price, but it can vary. Always double-check!
Example: For Sally's magical spatulas, Amazon takes its fee: 15% of $15 is $2.25. Multiply by 200 spatulas, and that's $450 gone.
3. Subtract Product Cost:
This one's vital. How much did you shell out for each product? Deduct this from your gross.
Example: Each of Sally's spatulas cost her $5. For 200 spatulas, she spent $1,000.
4. Don’t Forget Other Expenses:
Think shipping, packaging, and maybe that extra sprinkle of fairy dust. Every penny counts!
Example: Sally spent $1 per spatula on shipping and other costs. So, for 200 spatulas, she's looking at an additional $200 out the window.
Time for the Grand Reveal: Monthly Profit!
Here's where the magic happens. Subtract your expenses from your gross sales, and voila!
Example for Sally:
Gross Sales: $3,000
Minus Amazon Fees: $450
Minus Product Cost: $1,000
Minus Other Expenses: $200
Total Monthly Profit: $1,350
And just like that, Sally can see her potential earnings light up. Remember, these numbers are hypothetical, but the process? As real as it gets!