This article shows you how to use the Costs/Fees panel. Although this panel is inside the Filter Products box, it doesn't actually filter anything.
It is, rather, a data input panel that contains vital business information.
The cost information you enter in this panel is transferred to the View Data page. Mixed with other information, the View Data page gives you a pretty good picture of your total cost of goods, not just the purchase price from sources.
With a total cost of goods figure, it's possible to estimate a product's gross ROI.
1. Entering cost data
The data you enter in these fields comes from your own research or experience. Estimates can be used, but ultimately you need good data to make smart product sourcing decisions.
The four fields capture the costs needed to prep a product and ship it to the Amazon facility that handles your items. Perhaps you do this work at home or pay a prep and ship house. In either case, there is a cost and it should be included here.
- Enter the cost you incur to prepare a standard size product for shipment.
- Enter the cost you incur to prepare an oversize product for shipment. This price is usually higher than #1.
- Enter the cost you incur to prep and ship a bundle. If two or more products are shipped together, your prep centre may require a change to bundle pricing. This cost is applied in the View Data page when the quantity of products is greater than 1.
- Cost per lb to Ship to Amazon (approx). This figure is difficult to measure accurately. For the US market, we suggest entering around 0.75 to 1.00 (i.e. 0.80 US dollars per pound) in order to represent a suggested cost and better generate an estimated ROI. Over time, and shipments, you will get a better feel on what to put here.