Vendor Central Catalog Management
Transcription
In order to calculate cost to Amazon so that you don’t end up running at a loss, the simplest way would be as follows. Take your landed cost or X warehouse cost that you normally sell to other retailers for add your basic accrual percentage, your damage allowance percentage and your freight allowance percentage to this cost.
show moreAdd an additional three to 5% to this, to cover chargebacks and additional annual increase at the bare minimum, add a settlement discount or subscribe and save percentage to this cost. If you have them and you will then have a basic cost to work off of, and to use as your cost to Amazon. It is important to note that Amazon can most times take up to a solid year to implement a cost increase from your site.
So be sure to include enough of a buffer in your cost to them in the event that they do take this amount of time to accept your annual cost increase. We do cover more advanced information on calculating your cost Amazon in another course, Ms. MSRP stands for manufacturer suggested retail price and is also known as list price.
Recommended retail price or suggested retail price. It is the value placed on goods by the manufacturer. This is not the price that the product necessarily retails for, but provides the customer with an insight to the fair value of the goods. The best formula would be to multiply your cost to Amazon by 2.5, to even 3.5 times, so that your MSRP is at minimum 2.5 times the cost to Amazon.
And at maximum 3.5 times the cost to. In most cases, Amazon will not sell your product at the MSRP or even the map as once they have purchased your product from you, they are entitled to sell it to consumers for whatever they would like to sell it for the MSRP will remain on your product page, however, but crossed out so that consumers still know the value of your product.
Map stands for minimum advertised price and simply put, this is the minimum price that a retailer or third-party Amazon seller may advertise a product for. So if you agree to map pricing and your brand owner will distributor states that you may not sell a product below $15, you would be breaking your agreement. If you sell for $14 and 99 cents map must have a specific map agreement in order to enforce this price.