When you create an Amazon Pricing Rule using Fix $ or Percentage % profit margins, we use the formulas discussed in this article to calculate your price floor, price ceiling, and price if you are the only seller on the listing.
If you use the By Item Param options in your rules instead, we do not need to make any calculations. We simply use the numeric values you provide for the floor, ceiling, and no other sellers prices. For more info, see Amazon Repricing: Using the By Item Param Options.
To understand how Solid Commerce takes your competitors' prices into consideration when calculating your sell price, please see Amazon Repricing: How Solid Commerce Prices You Against Your Competition.
What we'll cover:
- How to Calculate Your Floor, Ceiling, and No Other Sellers Prices if You Select the Profit Is at Least Fix $ Setting
- How to Calculate Your Floor, Ceiling, and No Other Sellers Prices if you Select the Profit is at least Percentage % Setting
- How We Accommodate Shipping Fees
- Related Articles
How to Calculate Your Floor, Ceiling, and No Other Sellers Prices if You Select the Profit Is at Least Fix $ Setting
Solid Commerce calculates the Minimum Price Floor, Maximum Price Ceiling, and No Other Sellers Price based on the value you provide in the Amazon Sell Price Exp field. For a detailed explanation, see Amazon Repricing: Creating an Automated Repricing Rule.
EXAMPLE: Calculating Your Price Floor if Other Sellers are on the Listing (Fix $ Setting)
Suppose:
- You have set the Profit is at least to Fix $ and entered 100.00.
- You add a guitar to your Solid Commerce Warehouse with a cost of 300.00.
- Your Amazon Sell Price Exp is the word cost, prompting us to refer to the value in the cost field of your Warehouse ($300.00).
- Amazon's commission on musical instruments is 15%. For the fee chart we use, see Amazon's Help pages: https://www.amazon.com/gp/help/customer/display.html?nodeId=1161240.
Step 1: Calculate your Minimum Price Floor without Amazon's Fees using the following formula:
Amazon Sell Price Exp (cost) + Required Profit = Minimum Price Floor
$300 + $100 = $400
The lowest price we will submit to Amazon is $400.00, even if some of your competitors are charging less that $400.00. Proceed to Step 2 (below) if you also checked the Include Amazon Fees box.
Step 2: Add Amazon's Referral Fees using the following formula:
Your floor price from Step 1 / The percentage that remains after Amazon's commission, expressed as a decimal
$400 / (1 - 0.15) = $400 / 0.85 = $470.59
If you sell your guitar for $470.59, you will be left with $400.00 after Amazon collects their referral fee.
NOTE:
The no other sellers and ceiling prices are calculated the same way.
In the above example, if you set the If no other sellers are offering this product then raise my sell price by field to a Fix $ amount of $150,then your price when you are the only seller on the listing would be $300 + $150 = $450. If you also included Amazon's fees, your price would be $450.00 / 0.85 = $529.41.
Similarly, if your Maximum sale price was set to a Fix $ of $200, your price ceiling would be $300 + $200 = $500. If you include Amazon's Fees, your ceiling would be $500 / 0.85 = $588.24.
How to Calculate Your Floor, Ceiling, and No Other Sellers Prices if You Select the Profit Is at Least Percentage % Setting
Solid Commerce calculates the Minimum Price Floor, Maximum Price Ceiling, and No Other Sellers Price based on the value you provide in the Amazon Sell Price Exp field. For a detailed explanation, see Amazon Repricing: Creating an Automated Repricing Rule.
EXAMPLE: Calculating Your Price Floor if Other Sellers are on the Listing (Percentage % Setting)
Suppose:
- You have set the Profit is at least to Percentage % and entered 50.
- You add a guitar to your Solid Commerce Warehouse with a cost of $300.00.
- Your Amazon Sell Price Expression is the word cost, prompting us to refer to the value in the cost field ($300.00).
- Amazon's commission on musical instruments is 15%. For the fee chart we use, see Amazon's Help pages: https://sell.amazon.com/pricing#referral-fees
Step 1: Calculate your Minimum Price Floor without Amazon's Fees using the following formula:
Amazon Sell Price Exp (cost) * (1 + Your Required Profit, expressed as a decimal) = Minimum Price Floor
$300 * (1 + 0.5) = $300 * 1.5 = $450.00
The lowest price we will submit to Amazon is $450.00, even if some of your competitors are charging less that $450.00. Proceed to Step 2 (below) if you also checked the Include Amazon Fees box.
Step 2: Add Amazon's Referral Fees using the following formula:
Your floor price from Step 1 / The percentage that remains after Amazon's commission, expressed as a decimal
$450 / (1 - 0.15) = $450 / 0.85 = $529.41
If you sell your guitar for $529.41, you will be left with $450.00 after Amazon collects their referral fee.
NOTE:
The no other sellers and ceiling prices are calculated the same way.
In the above example, if you set the If no other sellers are offering this product then raise my sell price by field to a Percentage % amount of 75, then your price when you are the only seller on the listing would be $300 * 1.75 = $525. If you also included Amazon's fees, your price would be $525.00 / 0.85 = $617.65.
Similarly, if your Maximum sale price was set to a Percentage % of 90, your price ceiling would be $300 * 1.9 = $570. If you include Amazon's Fees, your ceiling would be $570 / 0.85 = $670.59.
How We Accommodate Shipping Fees
We don't use your shipping fees in our price floor, price ceiling, and no other sellers price calculations.
We do, however, take your shipping fees into account when setting your price on Amazon. We also account for your competitors' shipping fees.
Please see Amazon Repricing: How Solid Commerce Prices You Against the Competition for details.
Comments
Article is closed for comments.