Why is a profit calculator so important to a dropshipping business?
when you do not have a clear idea as to how to maintain profitability, it is only a matter of time before your business falters.
Thankfully, you can easily and effectively devise a profit calculator through using a common software program such as excel.
** FACT: Automation is Vital for Cutting Time and Energy Out of the Calculation Process **
Automation is not exclusive to dropshippers and resellers.
It is a common trait integrated into all manner Open Calculator of businesses for the same reason: it streamlines business operations and allows a company to run more efficiently.
Those selling through Ebay would probably find it much better if their business cut down on the number of manual steps and replace them with automated ones.
This makes business operations a lot leaner and, potentially, more profitable.
** How It Is Done: The Nine Simple Steps of Setting Up a Profit Calculator on Excel **
Here is a very brief detailing of what is needed to set up a profit calculator on Excel:
* Decide what it is you wish to sell
* Create an Excel file with all the needed headers for the calculation
* Provide the data for purchasing and shipping costs
* Add in the Ebay cost of an insertion fee
* Set up space for the Ebay Price
* Calculate the final listing price
* Calculate the PayPal fees
* Add up all costs
* Figure out the profit margin (Selling price minus all costs)
** Are there any ways that you could use excel formula to change the calculator so it works for you? **
There are ways that an excel formula could be modified to change a calculator so that they work a little better for your needs. Some of these steps include:
* Provide an input section for a “final listing fee” (for Ebay sellers) that is based on price modifications of the final sale price.
* Workout and input a certain fixed shipping rate for certain areas to simplify the calculation process.
* Add a “total cost” section that includes other expenses such as paypal fees, administrative overhead, etc.
Additional Areas of Concern and Why They Need to Be Acted Upon
Let the truth be told: it is not always possible to get exact shipping figures from suppliers.
Often, they will not know the costs until they actually weigh and mail the items.
This is because they do not have shipping calculator in place that will record common shipping fees to zip codes/countries they common ship to.
Some may provide estimates that can be off kilter and inaccurate which does not help the buyer or seller at all.