Fetcher is smart enough to automatically calculate your Amazon sales and Amazon-specific expenses,
Fetcher can’t accurately calculate profitability without knowing your Cost of Goods and Inbound Shipping.
It is important that you add Cost of Goods and Inbound Shipping for every product you sell on Amazon.
- Cost of Goods: Cost of labor and materials to produce your product
- Inbound Shipping: Cost of shipping your product from the production site
To add Cost of Goods and Inbound Shipping...
- Select the Expenses page from right-hand column
- Enter your Cost of Goods per Unit and Inbound Shipping Cost per Unit in the text boxes
- Enter the date that these costs became effective
How to use the Effective Date when your Cost change:
We know that your cost of goods or inbound shipping costs change all the time. You can enter as many different costs for an item as you would like as long as they each have a different effective date.
The Effective Date refers to the date of a sale you want Fetcher to use to the corresponding Cost Of Goods and Inbound Shipping. In the example above, there are 3 entries, each reflecting a different Total Cost and Effective Date.
- For any sale made from June 17th 2016 to the next Effective date, September 1st 2016, Fetcher will use $2.90 for the COGs and $0.60 for Inbound Shipping.
- For any sale made on September 2nd 2016 to October 8th 2017 Fetcher will use $1.38 for COGs and $0.75 for Inbound Shipping.
- For any sale made on or after October 9th 2017 Fetcher will use the same $1.38 for COGs and $0.70 for Inbound Shipping.
The best way to add your Cost of Goods for new stock is to use the inventory module in Fetcher to estimate when your current batch of inventory will be out of stock. Then, the new COGs should be assigned to start when the current inventory runs out of stock.
Here's another example of how that should work...
Let’s say that Jungle Snugs has 100 units in stock, and the COGs for this batch of inventory was $5.45/unit. This is what the Cost of Goods per Unit line should look like for the current batch of inventory, in order for the $5.45 per unit to be calculated correctly:
But, when it comes to the new stock of Jungle Snugs - 1000 units already stored in Amazon - the new stock has a new Cost of Goods of $4.00/unit.
This is where it can get tricky (but not really)...what date should Jungle Snugs use in Fetcher, as the start date of the new $4/unit COGs?
Well, if Jungle Snugs is currently selling 10 units per day, then the current stock of 100 units will run out in 10 days; 100 units currently in stock divided by 10 units sold/day = 10 days worth of stock available. And, assuming the date is August 1st, that means the current 100 units of inventory will run out on August 10th.
So, Jungle Snugs' new $4/unit COGs for the 1000 units of new inventory should start on August 11th, the day AFTER the current stock runs out.
This is what the Cost of Goods per Unit line should look like for the new batch of inventory, in order for the $4 per unit to be calculated correctly:
Now Fetcher can calculate your true profits!