If you want to increase profits with the increase of sales a repricer can give you then cost based repricing is for you. In this guide we will show you how to enter your landed costs of all of your products to compute your prices and see exactly how profitable your inventory and store can be.
Cost Repricing Breakdown
- Adding Costs
- Cost Fields
- Setting min/max based on costs
- How are the estimated profits calculated in my products page as shown below?
- Could I get snapshot of my top 5 Best Sellers / Most Profitable / Least Profitable?
- Is there a way I can view an overall trend of my profitability?
- What about a shipping cost already in Amazon?
- How do I set a min/max price BELOW?
Costs can be added to xSellco Repricer in two different ways. Either individually or by bulk adding a csv file.
These can be added when your are in your products page and click on costs as shown if the directions below.
Directions: Product Page>Costs - Not Set
Each of these fields are described below in cost.
To upload this information into xSellco Repricer in Bulk you do this by using a CSV file. If you already have a spreadsheet that has this information you can convert this to a csv file and upload. Follow the directions below to download a CSV template.
Directions: Repricer>Bulk Upload>Download CSV Template
To learn more about updating your CSV template click here.
These are the cost fields you can edit within xSellco Repricer. All of the prices filled in can also be set in any currency and we'll take care of daily currency fluctuations using European Central Bank daily rates. Any setting with an asterix (*) is required when setting up.
This is the product purchase price. This figure is needed to calculate your profits.
Cost of shipping the product to your customers. It is an optional field but you should enter a value here for accurate profit calculation.
Pick and pack cost of each unit according to your own internal calculations. You can fill this in for a more accurate calculation of profit on each sale.
The Recommended Retail Price (RRP) of the product. This can be used if you would like to to set your maximum sale price according to the RRP.
The rate of Value Added Tax to apply (a number between 0 and 100). This is usually set to zero outside Europe.
Estimated FBA Fee
Amazon's FBA fee for fulfillment. Only required for FBA-type SKU. Note that Amazon's actual charge will be used instead when available. This can take up to 24 hours after the product is initially listed and are updated during the daily import every 12 hours inside an account
Variable Closing Fee
For each media item that is sold, sellers also pay a standard fee.
Listing Fee % *
Listing fees are automatically created by Amazon when an item is in stock, we pull in/populate the listing fees from Amazon once an item’s price has been updated XSellco takes the Listing Fee and converts it into a percentage, for more information about Amazon’s Listing fees click here.
The name of the repricer rule that wish to apply to this SKU. The names of your repricers can be found in the My Repricers section of the dashboard under Name. An inactive repricer can also be specified here.
By Default xSellco imports fees from Amazon on your behalf. We receive this information when we get a repricing event. A repricing event occurs when one of your competitors changes their price we can then pull in any new information on this product. If you wish to define these fees yourself you can do so by following the directions below.
Directions: Settings>Channels>Select the Amazon channel>Repricer>Client Define Fees
This feature automates your min/max prices based on formula including your costs and selling price to ensure you always sell in profit.
The Net Margin Repricing is calculated based on the entered costs.
Net margin is the percentage of profit remaining after all costs and fees have been deducted from a company's total revenue.
Total Costs =
Unit Cost + Listing Fee Amount + Shipping Cost + Pickpack Cost + Estimated FBA Fee + Variable Closing Fee
VAT has not yet been calculated to do this we must
My Price (Landed Selling Price) / (100+Vat Rate%) * 100
Now we have calculated costs and VAT we need to calculate your Net Selling Price. This would be your selling price excluding VAT as VAT is a pass through cost for a business. Businesses collect VAT for the relevant tax authority and so business margins should be based on VAT exclusive sales prices.
Net Selling Price =
My Price (Landed Selling Price) - VAT
Your Net Selling Price is 100% for the margin calculations. Now with this calculation we can set our cost based on Net Margin Amount or Percentage.
The Cost Price is calculated based on the unit cost entered.
This can be used as an amount or percentage and is a handy way to set your maximum price. Setting this to 0 will match what you have set as your Unit Cost.
The Recommended Retail Price (RRP) of the product.
This can be used as an amount or percentage and is a handy way to set your maximum price. Setting this to 0 will match what you have set as a Recommended Retail Price (RRP).
Now we have gone through the formulae on how you can set your min/max prices lets adjust so we can always be assured we are making a profit. To automatically set your min/max prices based on costs you must have a repricer already created.
Follow the directions below to access your repricer.
Directions:Repricer>My Repricers>Select Repricer>Manually assign min/max-OFF
Best on the formulae above you can now set your min/max prices on the following:
No minimum (only available in Min Price and sets min price to no longer be relevant and price as low as necessary)
Net Margin %
Net Margin Value
Cost Price %
These figures are highlighted in either green if they are positive and red if they are negative. The calculations are as follows below using the formulae above although remember to change My Price (Landed Selling Price) to the figure your estimates are based on.
Net Margin Amount =
Net Selling Price - Total Costs
Net Margin Percentage =
Net MArgin Amount / Net Selling Price
The default is showing these in an amount but if you would like to see them as a percentage or both you can do so by following the directions below.
Directions: Settings>General>Account Settings>Repricer>Margin visibility options
Yes, these can be shown in your dashboard. With that you can see the number sold and the profit made on these products. Go to Dashboard>Repricer to find these tables.
Yes, again this can be viewed in your dashboard. Go to Dashboard>Repricer to find this table.
If you would like more information about the data on your dashboard click here.
If you already have a shipping cost calculated in Amazon. You will need to ensure this added into xSellco costs as when we calculate the lowest/highest landed price this, is the price including shipping.
If you would rather go below than above just fill in the minus sign in front of the number. You will receive a pop up warning when you save your repricer to ensure you are happy with this decision.
If you have any more questions on Cost Based Repricing we would love to hear them. Contact our support team here email@example.com