Do you take margin and markup into account when repricing on Amazon?
And how do margin and markup make Sellery’s repricing even more powerful?
Keep reading to find out.
Why Markup & Margin are So Special
One of the biggest worries that many Amazon sellers have is that they might sell items and lose money. This fear generally comes from a misunderstanding about how repricing software works. Or rather, the way repricing software should work.
Sellery protects you from selling at a loss by calculating a minimum (floor) price that it will never sell below. This prevents you from selling at a loss. By allowing you to increase the minimum price through the use of markup and margin, you can be sure that your items are sold for your desired profit.
Margin & Markup Defined
When we talk about margin in Sellery, we’re talking about something very specific.
Margin is the desired percentage of the final sale price that you wish to be profit.
Because your items in Sellery have a cost associated with them, as well as shipping costs and estimated Amazon fees, there is a limit to the percentage of the final sales price that can be profit. In Sellery, this limit is set to 70%. Because of this, be aware that if you set a margin between 50% and 70%, you may see your item prices become very high.
Here’s an example of an item with a 7% margin applied:
Markup is a fixed amount applied to an item’s cost and affects the calculation of the minimum price.
For example, start by imagining an item with a cost of $10. If you apply a 10% markup to that item, $1 will be added to that item’s cost and will be reflected in the minimum price calculation.
Here’s an example of an item with a markup of 15% applied:
Negative markups are used to discount your item prices. In Sellery, you’ll see a notification warning you that you may lost money on a sale when you use a negative markup.
Want to See How Sellery can Help You?
Start repricing with Sellery, free for 2-weeks. You’ll get all the email support you need, plus we’ll set up a one-on-one repricing consultation with one of our Sellery experts to help make sure that you get the most out of Sellery. They’ll show you how to:
- Develop strategies that win the Buy Box more often, using Sellery.
- Stay ahead of your competition while avoiding pricing wars.
- Create custom, automated exports of the data that matters to you.