Amazon Revenue - Break Even Point

AMAZON REVENUE - BREAK-EVEN POINT

In short, the break-even point is the point at which income equals your expenses. In simple words, if your income does not correspond to the price, then the break-even point, that is, the Total profits = Total cost of ownership. In the event that you are a "No profit no loss situation.

A SIMPLE FORMULA FOR THE CALCULATION OF THE COST-EFFECTIVENESS THRESHOLD:

To BE equal to the Total Revenue – Total Cost

THE TOTAL COST OF OWNERSHIP?

For the FBA, you can use the following costs in order to figure out your break-even point:

Total cost = the boarding cost + be Submitted price + FBA Fees + Storage cost + Remaining cost (if applicable)

If we keep our total cost of ownership, we can simply subtract it from the total revenue. In this way, we can provide our bottom          

The Cost Of The Landing?

This is a combination of production and the cost of shipping, which you are willing to spend.

Planting cost = cost of production + Fear of the price

The Cost Of The Delivery?

This is the price at which Amazon will be paid for the services it provides, to facilitate the trading relationship between the buyer and the seller.

Salary????

When a customer orders a product, Amazon will take the responsibility to make sure that FBA sellers to deliver the product to the customer. For this service, the fee provided by Amazon, and will be referred to as the FBA fee.

The Cost Of Storage.

This is the fee that Amazon charges for the storage of the seller of the items in your magazine.

IF YOUR REVENUE IS HIGHER THAN THE PROFITABILITY THRESHOLD:

This is the point at which you begin to enjoy the profits of your business. What is more, the graph has to be high on the break-even point, the higher the gain window is enlarged.

On the other hand, if you look at the the situation, and in the context of the competition, also taking into account the profitability threshold, in order to determine how you can reduce the prices so that you don't have to deal with loss.

This will help you make an estimate of the prices in such a way that you will easily be able to stand on to have a competitive advantage over your competitors.

The calculation of the cost-effectiveness threshold, it can help you to make sure you don't get to lose.

For example,

If you will be selling 600 units for $14:

The total revenue is $ 8,400 (600x14).

Out of that, let's say, $ 6,000 is the break-even point.

Now, if your competitor is selling it for $13.2, and this has an impact on sales results. For example, you can review the price and reduce it, it's a good idea, and it will not result in losses for the company. The profitability threshold, it helps in situations such as this.

If you're going to sell it for $12.5, the total revenue would be $7,500 (600x12.5).

Even more than the $ 6,000 (it is the threshold).

So, it may reduce your income for a while now, but, on the other hand, if you like it get any better than a competitor of, the sale, it will help you to generate more revenue, increase profits, and have more assets.