Different sellers have different ways for pricing their items and different profit targets. However all of them should mind these two things:
- Market price - how much a buyer expects to pay for a certain item
- Product cost - how much does it cost you to deliver the product to the buyer. Cost includes any related expense such as sourcing, shipping, advertising fees or customer care. You need to take everything into account
Many sellers apply unified pricing rules for all their listings (e.g. same %profit), which is beneficial in terms of simplicity.
- Profit per source price - higher source price, lower profit margin (and vise versa)
- Profit per sales results - more sales, higher profit (and vise versa)
- Profit per listing's age - older listings, higher profit margin (and vise versa)
- Updating listings breakeven and profit over time
Pricing and Profit Calculation
Yaballe repricer helps you set the price of your items initially and as you go:
- Pricing is calculated based on source price and your settings: %breakeven, %profit, and $profit.
- When an order comes in, before it is fulfilled, the system shows Estimated Profit:
Estimated Profit = Paid Amount - Monitor's Source Price - %BreakEven
- After the order was fulfilled, the system shows Final Profit:
- API: Final Profit = Paid Amount - eBay fees & taxes - final source price
- Non-API: Final Profit = Paid Amount - taxes - %breakeven
(Reason: eBay doe snot report back their fees in the Non-PAI protocol)
Here are some best practice to help you while you are setting your preferences:
|Best Practice||How to Enforce It|
|Understand how Yaballe Repricer calculates price, and don't assume it's the same as in other monitors you may have used in the past||Read the pricing calculation article, and how it compare to|
|Take into account that Amazon won't refund some of your INRs and returns - make sure to cover their cost
(given Amazon policies such as: non-returnable items, closed account and INR is not refunded if handed-to-courrier)
If you are using Auto-ordering by Yaballe Amazon Accounts (AKA Fulfillment, Managed Accounts) - read it's terms & conditions to understand how refunds and returns policies.
|eBay selling fees are not reported by its Non-API protocol and therefore not reduced from the 'Paid Amount' - make sure to include them in your breakeven so profit calculation is accurate||Make sure your %breakeven includes these costs|
|Tax exemption with Amazon buyer accounts (yours or Managed) typically cover 80-90% of states, so you might occasionally pay tax for orders||Make sure your %breakeven includes these costs|
|Labor - yours and your VAs' time is also part of your cost.||Make sure your %breakeven includes these costs|
|Consider the product mix (price -wise) in your store --- loss per one expensive product (e.g. Amazon return refund wasn't received) can eat the profit of many other cheap products||
Think about how to balance the mix in your store - many cheap products, and very few expensive products is a risky mix.
Setting a New Listings Price
To set listings' initial pricing - use one of these methods:
- Automatically by your breakeven and profit default settings - if you never changed them, the system default will apply.
- Automatically by you profit-by-price-range settings - override the default breakeven & profit settings, in case there is a rule that fits the item's source price.
- By specifying the per-list breakeven and profit when listing a new items - override any other breakeven and profit settings you may have defined.
Updating an Existing Listings Price
To update existing listings' price - use one of these methods:
- Update listings' breakeven and profit.
- Set auto-rules: