Trying to figure out how much an Amazon (or really, any ecommerce product launch) is going to cost can be difficult.
But the launch cost isn’t really the whole story!
I wanted to figure out how long it would take to make the money back invested in the launch plus the results of the ongoing next twelve months.
The only way to do something like this is with a spreadsheet, so I built one.
This calculator, once you feed it some starting info and variables, will tell you how much the launch will cost, how much the total cash required is and how much gross profit you will make.
Even more importantly, it will tell you how much cash you will have left after factoring in the cost of buying more inventory.
I made a short video here explaining how it works and how to plug in variables to get results.
Try running (and saving each time) different scenarios to see how they play out.
Figure out the worst case scenarios and how low sales are where you still break even.
Then have fun and see what it looks like when the product really takes off!
In my experience (and we’ve got over 500 Amazon and ecommerce sellers as clients), the single biggest factor in long term success is having products with good margins. The more you are paying for the product, relative to the price you are charging the harder it is to be successful even if you have every other thing 100% right.
Hope this helps you. If you have questions or need help with bookkeeping, tax filing, sales tax or anything else, let us know! That’s what we’re here for!