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This article applies to selling in: India

Minimum/Maximum Price Calculator

Price calculator allows you to calculate minimum and maximum price for your SKUs by adding the desired profit target, item cost and other costs.

How to use the price calculator?

To calculate minimum price, follow these steps:

  1. In Minimum profit target, enter your profit target in INR or %.
  2. Enter the price of the product in INR in Item cost.
  3. Enter other additional costs like administrative cost, packaging cost etc. in INR in Other cost.
  4. Click Calculate to get the minimum price.
  5. To update minimum prices, click Update minimum price.

To calculate maximum price, follow these steps:

  1. In Maximum profit target, enter your profit target in INR or %.
  2. Enter the price of the product in INR in Item cost.
  3. Enter other additional costs like administrative cost, packaging cost etc. in INR in Other cost.
  4. Click Calculate to get the minimum price.
  5. To update maximum prices, click Update maximum price.

What are pricing suggestions?

Pricing suggestions can be used to evaluate your calculated minimum and maximum prices. The different reference prices available for your evaluation are:

  • Current Price: The price at which your product is currently selling.
  • Buy Box Price: The current Buy Box winning price for the selected ASIN.
  • Best Price: Best price is based on multiple factors including historical selling prices, recent Buy Box eligible prices, and customer feedback for your products.
  • Lowest 30 days Best price: The lowest Best price in last 30 days. You can use this as a reference when deciding minimum prices.
  • Lowest 30 days Buy Box Price: The lowest Buy Box price in last 30 days.

What are the different fields on the calculator page?

Field Description
Minimum Profit Target The minimum profit that you require when selling on Amazon (inclusive of shipping). Profit target should be between 0-100% and cannot be less than zero.
Maximum Profit Target The maximum profit that you require when selling on Amazon (inclusive of shipping). Profit target should be between 0-100% and cannot be less than zero.
Item Cost The cost that you incurred in purchasing the item.
Other Cost The expenses you incur apart from purchasing the product, like administrative cost per unit, packaging cost, per unit cost of sending the product to fulfilment centre, etc.
Shipping charges The delivery charges paid by the customer.
Minimum Price The minimum price boundary up to which the SKU price can go.

How is Net profit calculated?

Net Profit (absolute) is calculated as: [Calculated Minimum Price – Total Cost – Total Fees] + Shipping Charges

% Net Profits= Net profits/ (Calculated Min. Price+ Shipping)

Why are minimum and maximum prices important?

Minimum and maximum prices are important for the following reasons:

  • Ensures your offers are not suppressed due to pricing errors, till the time they are within the minimum and maximum prices defined by you.
  • In Automate Pricing, SKU prices would automatically change within minimum and maximum price range.
  • You can quickly add the SKUs in Automate Pricing if minimum and maximum price is available for SKU.

Note:
  1. For Easy Ship channel offers, weight handling fees will be charged separately and is not included.
  2. The minimum price calculated does not include shipping charges. You will receive the shipping charges separately. Thus, the actual profit made is: {[Calculated Min. Price – Total cost – Total Charges] + Shipping charges}.
  3. The profit target should be greater than or equal to 0, and within 0-100%.
  4. The item cost is mandatory, and it cannot be negative or zero.
  5. Setting a minimum price above the current selling price leads to offer suppression and therefore not allowed.
  6. Setting a maximum price below the current selling price leads to offer suppression and therefore not allowed.
Important: The minimum price estimated is based on cost entered and fees applicable on estimated minimum price. This is an estimate and might vary based on actual prices, fulfilment channel and shipping zones.

For more information on Best Price Rule, click here.

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