What is the formula for calculating Amazon's payment collection rate? How to calculate profits?

What is the formula for calculating Amazon's payment collection rate? How to calculate profits?

When opening a store on Amazon, merchants are very concerned about the issue of payment collection. The settlement process of Amazon payment collection is repeated every 14 days, and the payment collection method is the same for all sites. So, what is the calculation formula for Amazon's payment collection rate?

Calculation method of collection rate:

Sales remittance rate = payment received this month / total sales this month

Note: The payment received this month is the payment collected from the goods sold this month, and does not include the payment received from past sales this month, that is, the payment method is monthly payment.

The collection rate should be based on the actual amount received. The amount that has not been received due to deposit, monthly settlement, etc. cannot be calculated.

How to calculate profit?

Download report:

Data Report - Payment - Date Range Report - Select the corresponding date range - Summary

Data Report - Payment - Date Range Report - Select the corresponding date range - Details

Through the summary table, total income - total expense = total payment

Total collection/total sales = collection rate

Through the collection rate indicator, you can also directly determine your approximate profit ratio.

For example, if the product price is 100 USD, the cost is 30 USD, and the first-leg cost is 5 USD, then the product cost accounts for 30%, and the first-leg cost accounts for 5%, so the total cost is 35%.

So if the downloaded report shows that the collection rate is less than 35%, then it is certain that there is no profit.

Gross profit margin = collection rate - (product cost + first-leg) cost ratio

If you don’t want to make the calculation so complicated, you can directly use the collection rate indicator to detect the problem of profit accounting.

Through the detailed table and profit pivot table, you can quickly get the product and first-mile cost of the products sold. Then you can know the cost in detail.

Subtract this part of the fee from the collected funds - minus the evaluation fee, and you get the gross profit.

In order to facilitate understanding of the cost proportions of various aspects, a tabular analysis of the cost proportions was also made.

The above is an introduction to the calculation formula of Amazon's collection rate. Amazon settles accounts every 14 days, and after the settlement, the sales revenue will be transferred to the seller through the bank.

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