Nusty Space › How do I find my real profit per Amazon product? › Profit, margin and ROI on Amazon: what differs?
Profit, margin and ROI on Amazon: what differs?
Profit is the money left from a sale after all costs. Margin is profit divided by selling price, as a percentage. ROI is profit divided by product cost. Each answers a different question, and Nusty Space shows all three per product.
How is each one calculated?
- Profit = price − Amazon fees − cost − shipping − taxes. Sebrae pricing guide
- Margin = profit ÷ selling price. A R$ 100 product with R$ 20 profit has a 20% margin.
- ROI = profit ÷ cost. With R$ 50 cost and R$ 20 profit, ROI is 40%.
- Amazon commissions of 10% to 15% lower all three. Amazon selling prices
Price and fees come through the SP-API, cost is entered by you, and the trial lasts 3 days. Plans
Which one should you use?
Margin to compare prices; ROI to decide where to invest in stock; profit in currency to know what comes in.
What common mistakes should you avoid?
- Confusing margin with ROI.
- Watching margin only and ignoring the amount.
- Calculating with outdated cost.
Frequently asked questions
Is a 20% margin good?
It depends on your fixed costs and turnover. Nusty Space does not define what is good for you.
Can ROI exceed 100%?
Yes, when profit is larger than product cost.
Can I get an alert when they fall?
Yes. Set a minimum profit, margin or ROI.
Do all three show together?
Yes, per product on the dashboard.
Which of the three should I track?
The three answer different things: profit is the amount left, margin is the share of the sale that is left, and ROI compares profit with cost. Nusty Space shows all three per product and warns you when one falls below the limit you set.