Amazon Seller Pricing Formula:
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The Amazon Seller Price Calculator helps Indian sellers determine the optimal selling price for their products by calculating the final price including cost, margin, and GST. This ensures profitability while remaining competitive in the marketplace.
The calculator uses the Amazon seller pricing formula:
Where:
Explanation: The formula calculates the base price by adding cost and margin, then applies GST to determine the final selling price that customers will pay.
Details: Proper pricing is crucial for Amazon sellers to maintain profitability while staying competitive. Underpricing leads to losses, while overpricing reduces sales volume. Including GST correctly is essential for legal compliance in India.
Tips: Enter product cost in INR, desired margin in INR, and GST percentage (default is 18%). All values must be non-negative numbers. The calculator will provide the final selling price including all components.
Q1: What is included in the cost calculation?
A: Cost should include manufacturing/purchasing cost, packaging, shipping to Amazon warehouse, and any other direct product expenses.
Q2: How do I determine the right margin?
A: Consider Amazon referral fees, fulfillment fees, storage fees, and your desired profit percentage when setting margin.
Q3: Is GST always 18% for Amazon products?
A: While 18% is common, GST rates vary by product category. Check the latest GST slabs for your specific product type.
Q4: Should I include Amazon fees in this calculation?
A: Amazon fees are typically deducted from your selling price, so they should be considered when setting your margin amount.
Q5: Can I use this for multiple product variations?
A: Yes, calculate each product variation separately as costs and margins may differ for different variants.