Knowing and calculating ROI or Returning on Investment is essential for the success of any business, especially Amazon’s sales. If you look at Amazon top sellers interviews, there is a common point between all of these interviews, which is to know how much costs and profits are. With the ROI indicator, you can easily get your growth and progress in relation to the number.
How do I find my Amazon FBA ROI?
To calculate this indicator, you can refer to your Amazon seller account, but if you do not have access to your sales panel or have not yet set up an account, we at ScanFair have provided a tool to calculate Amazon ROI that you can use at the bottom of this section.
If our tool shows you 100% ROI, that means you succeed in doubling your capital. If that number is 200%, that means your capital has tripled.
The higher your ROI number, the higher and better your growth rate is.
How to Increase ROI on Amazon FBA Business?
Businesses with low ROI will never continue and fail sooner or later. After the first day you started Amazon FBA Business, think about increasing your return on investment day by day.
But the Question you might have is, how can you increase this rate?
The first step is to calculate Amazon FBA Fees. Vendors operating without calculating fee are trading blindfolded and will sooner or later be removed from the competition scene with other vendors. Amazon FBA fees calculation helps you get enough information about the categories and products you sell. Never focus equally between all your categories and products, but your main focus and attention should be on products with higher ROI.
The second one, which almost 90% of vendors are unaware of is the checking records, although Amazon calculates the numbers completely for you, and you have access to them through the panel, but you should note that these numbers are not always correct, and you must manually control your records to pay the correct cost based on the category, weight, size and type of the product. Amazon has received it from you.
If you notice a problem with your expenses, contact Amazon Support immediately. It usually takes between 3 hours and 2 days to process your application.
Another important item that can greatly increase your ROI level is to pay attention to your inventory. Try to have a detailed strategy for managing inventory and reducing refunds so that you don’t get into trouble. Also, try to place the Inventory Performance Index or IPI above the threshold so that you don’t fall into additional restrictions, problems and costs.
There are many tools and software based on Amazon vendors. Don’t be afraid of new technologies and try out the good tools that exist to find keywords, optimize ads and …. Take advantage to improve your ROI. It is true that the tools are good, but these tools themselves have a monthly subscription fee, so it is better to get good and necessary tools and do not charge for any tools. To find out what other Amazon vendors think of the tools, you can look at the name of the relevant tool or product from scanFair‘s homepage.
What is a good ROI percentage on Amazon?
The amount of good ROI depends on a variety of factors, including which country do you sell Amazonian products? What is the average of each item you sell? Do you have many competitors in your category? Answering these questions can determine the amount of ROI you need, but generally try to move towards 300% ROI. This index rate shows both good growth and no number is out of reach.
Can You Use Scan Fair’s ROI Tool in Other marketplaces?
Yes, the ROI calculation formula is the same in all cops markets, and you can calculate the ROI of Walmart, eBay and any other police market where you are active through our tool.