Amazon FBA

Launch Budget Calculation

ITEM

Sell Price: $12.99

Landing Cost: $3.34

Amazon Fees: $6.25

Gross Profit: $3.4 (26.17%)

GIVEAWAYS

Total: 300

Inventory Cost: $3.34 x 300 = $1002

PAYPAL

Giveaways: $12.99 x 300 = $3897

Transaction charges:

= ( ($12.99 x 3%) + $0.3 ) x 300

= $206.91

Min amount in PayPal: $4103.91

 

MANYCHAT COST

FB Ad per Giveaway: $1.1

ManyChat Subscription: $10

Total Cost:

= ($1.1 x 300) + $10

= $340

AMAZON

Amount in Amazon: ( $12.99 – $6.25 ) x 300

= $6.74 x 300

= $2022

 

Amazon will not allow you to withdraw this $2022 all at once. You might be able to withdraw just 80% of this amount, rest Amazon will keep to process Refunds and/or Returns.

TOTAL BLEEDING

Add 300 item purchase amount ($12.99×300)

Subtract 300 inventory cost ($1002)

Subtract Amazon Fee ($6.25×300)

Subtract PayPal Refunds

Subtract ManyChat Subscription

Subtract FB Ads Cost

Have a look at attached image

= $3897 – $1002 – $1875 – $4103.91 – $340

= $3423.91

Thus, you will loose $3423.91. But don’t worry, it will payoff big time, in Sha Allah.

Assumptions:

Item will convert over ManyChat, note, not every niche is successful with ManyChat. In that rare case, you might to revert back to Coupons etc

Shipping Fee and Taxes are not added for same reason, keeping it simple

Organic sales data during launch is deliberately skipped for the sake of brevity

Profits from organic sales will decrease your loss

If you sourced & priced your product right, you will be able to recover the Bleeding Loss in a month or two

Download MS Excel Spreadsheet: https://www.teemya.com/BleedingBudgetCalculation.xlsx

Happy Budgeting!