*-Calculations=+

How Amazon calculates their Shipping Credit according to a forum post:

SHIPPING CREDIT = [per shipment rate] + (([item weight (oz)] - 16) * [per pound rate]/16)

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ROI:
ROI = NetProfit / BuyCost * 100 (if BuyCost > 0)
ROI = 0 (if BuyCost <= 0)

ROI FOR SCOUT: 

ROI = Net Profit/(Cost+Shipping+Sales Tax)*100

ROI FOR LIST AND PREP and SCOUTIFY

ROI = Net Profit/(Total Cost/Unit+Shipping)*100

The sales tax is included in the Total Cost/Unit unlike with Scout. For Scoutify you have to click on the Profitability tab to see Sales Tax broken out, and sales tax is part of the buy cost in List & Prep when you use the Total Cost Calculator.

 

Profitability Reports: 

Net Profit of all of the Orders - Net Profit of all of the Returns to get the same amount.

 

Inventory Valuation Cost/Unit:

SubMSKU qty On Hand  * Price/Unit for each subMSKU sort sequenced, then added together for a total cost. 

Divide that by the total number of units of all On Hand in the SubMSKUs

 

Total Purchased Quantity = Sold+On Hand (remember that includes fulfillable, unfulfillable, and reserved)+units CASH Reimbursed-Units Returned

Formula for Calculating the ROI or List Price for MFN Items in Scout and Scoutify: 

From JIRA: https://inventorylab.atlassian.net/browse/PD-3161

For Merchant Fulfilled items, shipping to a customer is not generally done by the pound, but instead is a seller estimating what their entire cost would be to ship. We should adjust the shipping options in List to include a flat cost for when MFN is the selected fulfillment channel.

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Calculate the ROI given a List Price value:
Net Profit = List Price - (Cost/Unit+AmazonReferralFee+FBA FulfillmentFees+ClosingFees+EstMFNShipping)

ROI = (Net Profit / (CostPerUnit) * 100

Calculate the List Price given an ROI value:

User puts in ROI% and we calculate the needed Net Profit from that using
NetProfit = ROI*(CostPerUnit)

Use the Net Profit and fees to calculate the List price

List Price = 100(NetProfit+CostPerUnit+FBAFulfillmentFees+ClosingFees+EstMFNShipping)/(100-100(CommissionPercent)

 

Auto Price Rules for % of Profit Margin:

ListMinMaxPrice= -(CostPerUnit+FBAFulfillmentFees+InboundShippingFees+ClosingFees)/(CommissionPercent+DesiredProfitMargin-1)

 

CommissionPercent: Referral percentage for the category. They can be found here: https://sellercentral.amazon.com/gp/help/external/200336920?language=en_US&ref=efph_200336920_cont_G19211

DesiredProfitMargin- The Percentage they enter in the Auto price rules

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