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!