In order to get the most accurate profit figures, it is imperative to enter the Cost of Goods (COGs) for your ASINs. As these costs are not considered in the Amazon reports, users can utilise Sellics to get an accurate depiction of the actual health of their Amazon business.
The data can be entered in the section of the Cost Manager
1. What are the Cost of Goods (COGs)?
The COGs consist of 3 metrics: Shipping Fees, Cost of Goods and tax rate
(a) Shipping Fees
This refers to the price that that you incur for either moving one unit of each ASIN from the factory to the Amazon Fulfillment Center if you do FBA or the price incured for moving one unit of each ASIN from the factory to the end customer if you do FBM.
(b) Cost of Goods/Production Costs
This refers to the price incured in producing one unit of each ASIN.
(c) tax rate (VAT)
This refers to the tax rate charged for the sale of each ASIN. If for example the ASINs are being sold in Germany where the common VAT tax rate s 19%, then you simply need to enter a tax rate of 19%.
NB: Please note that if you are already tax registered on Amazon, you do not need to enter the VAT data as we will simply use the tax data delievered to us from your Amazon account.
2. FBA vs FBM
(a) If a seller is doing FBA, the shipping costs refer to the price of moving one unit of each ASIN from the factory to the end customer
(b) If seller is doing FBM, the shipping costs entered are in reference to the price incured in moving one unit of each ASIN from the factory to the end customer.
However, in the case of (a), sometimes the manufacturer sends the units to the seller's private warehouse and not directly to Amazon. In this case, if the seller is using the “Amazon inbound transportation service / FBA Transportpartnerprogramm ” (which is a service that Amazon offers to pick up the ASINs from the seller's warehouse), the shipping costs entered in the cost of goods section should only be those incured when moving one unit of each ASIN from the factory to the Seller's warehouse.
The cost of the Amazon inbound transportation service can be found by clicking on the sub-section of "FBA Storage fees/FBA Service fees" in the profit breakdown section of the tool (This information is only available on the European/North American level and not on the country level.)