PROFITS Tool

Profits 

Users can use Profits inside of Data Dive to quickly calculate all key financial metrics of a product prior to launching. This is extremely helpful for estimating the required to launch and estimate ROI. 

The best way to use Profits is by correctly inputting all information based on real-world numbers. If you’d like to move faster, users can select the “Populate” button in the top right-hand corner of the Profits tab to pull data from a product already in the niche. Keep in mind that for best results you’ll want to fill out the entire Profits tab as accurately as possible. 

In order to complete the Profits tab users will need to fill out all six sections of the Profits calculator: Your Strategy, Product Design, Shipping & Packaging, Shipping Costs, Order P&L, and Budget Required to Launch: 

Your Strategy

• • Price: Fill in the price of your product.
  • Sales Velocity: Estimate sales velocity either by matching the monthly sales to a competitor within the recommended range (e.g., 60-70%) or referring to the MKL where a 65% sales velocity is common.
  • Choose Production lead time between 1 to 12 weeks and choose when your production is going to end. 
  • Specify your target TACOS.

Product Design 

• • Input the product dimensions, weight, and choose the product type. 
  • Choose your product category.
  • Click the checkbox if the product has Lithium batteries, and if it has special handling.

Shipping & Packaging 

• • Click the checkbox if your box comes in a poly bag and input the dimensions.

Shipping Costs 

• • Choose your desired port. The "Ship from" is currently limited to China. However, you can choose destination options: East Coast, West Coast, or Central.
  • Select your desired freight option from the dropdown menu.

Order P&L

• • Fill in the Order P&L section. Input the manufacturing cost and custom duties. This will automatically calculate the shipping associated with your product.

Budget Required to Launch 

• • Input the launch marketing cost, and specify the percentage of revenue allocated for launch marketing.
  • Enter the percentage of the landed cost.

Bottom Line

• • After completing all the required fields, review the information in the Bottom Line section where you will find crucial metrics displayed. 

Anatomy of Profits:

1. Niche Name: Name or title of a specific product category.
2. People who can see this niche:
3. Assignee: A person responsible for performing a specific dive.
4. Researched: Date of the latest dive in a niche.
5. Populate: By clicking the "Populate" button, data will be extracted from a product that is already within the niche.
6. Announcement: Red circle with the number of updates on the icon for new releases.
7. Notification: Display standardized research tasks on the icon.
8. Comments: Collaboration through tagging team members and adding screenshots.
9. Org: Email of the admin of the account.
10. Add space or label: Addition of preferred space and label in a niche.

Your Strategy:

11. Your Strategy: Strategic considerations for your product, including price, sales velocity, production lead time, target TACOS, and products per order.
12. Price: The selling price set for the product.
13. Sales velocity: The estimated rate of product sales.
14. Production lead time: The time required to manufacture the product.
15. Production ends in: The estimated completion date of the production process.
16. Target TACOS: Total Advertising Cost of Sale, the desired advertising cost percentage for profitable sales.
17. Products per order: The number of products included in each customer order.
18. Feedback: Rate your experience.
19. Resource Center: Users can ask questions, give feedback, and access resources such as guided tours and a knowledge base to enhance their understanding of the tool.

Product Design:

1. Product Design: Design and specifications of your product, such as FBA fees, product box dimensions and weight, shipping weight, category etc.
2. FBA Fee calculator: To calculate the fulfillment fee charged by Amazon for the product.
3. Product box L x W x H: The dimensions of the product box (Length x Width x Height).
4. Product box weight: The weight of the product box.
5. Shipping weight: The total weight of the product, including packaging.
6. Product type: The category or type of the product.
7. Category: The specific category in which the product belongs.
8. Has Lithium batteries: Indicates if the product contains Lithium batteries.
9. Has Special handling: Indicates if the product requires special handling.
10. Size tier: The size classification of the product for Amazon FBA.
11. FBA fee: The fee charged by Amazon for fulfilling the product.

Shipping & Packaging:

1. Shipping & Packaging : Shipping and packaging details, including custom product box size, carton dimensions, carton weight, and the number of cartons in an order.
2. Carton Calculator: Tool to calculate the dimensions and weight of product cartons.
3. Custom product box size: The customized dimensions of the product box.
4. Carton L x W x H (boxes): The dimensions of the carton containing multiple product boxes (Length x Width x Height).
5. Carton L x W x H: The dimensions of an individual carton (Length x Width x Height).
6. Product boxes per carton: The number of product boxes that fit in a single carton.
7. Carton actual weight: The actual weight of the carton.
8. Carton dimensional weight: The dimensional weight of the carton.
9. Cartons in order: The total number of cartons in an order.

Shipping Costs:

1. Shipping Costs: Calculation of shipping costs based on order volume, weight, shipping origin and destination, shipping method, freight cost, tariff, and shipping duration.
2. Shipping Calculator: Tool to calculate shipping costs.
3. Total order volume: The total volume of the order.
4. Total order actual weight: The actual weight of the entire order.
5. Total order dimensional weight: The dimensional weight of the entire order.
6. Ship from & to: The origin and destination of the shipment.
7. Ship by: The chosen method of shipping.
8. Freight cost: The cost of shipping the order.
9. Shipping tariff: The tariff associated with shipping.
10. Shipping duration: The estimated time it takes for the shipment to reach its destination.

Order P&L:

1. Order P&L: an overview of the product order, including revenue, landed cost, manufacturing and shipping expenses, etc.
2. Products per order: Number of products included in each order.
3. Revenue: The total revenue generated from the product.
4. Landed cost: The total cost of producing and shipping the product.
5. Manufacturing: The cost of manufacturing the product.
6. Shipping: The cost of shipping the product.
7. Customs duties: The customs duties associated with importing the product.
8. Amazon costs: The costs incurred by selling the product on Amazon.
9. Referral fee: The fee charged by Amazon as a percentage of the product price.
10. FBA fee: The fee charged by Amazon for fulfilling the product.
11. Storage fee: The fee charged by Amazon for storing the product.
12. Amazon PPC: The cost of Amazon Pay-Per-Click advertising.
13. Total cost: The total cost of producing, shipping, and selling the product.
14. Order gross profit: The gross profit generated from the product.

Budget Required To Launch:

1. Budget Required To Launch: Budget planning for product launch, marketing, and inventory.
2. Launch marketing: The budget required for marketing activities during the product launch.
3. Cash reserve for the second order: The amount of money reserved for future orders.
4. Total cost incl. launch & reserve: The total cost including launch marketing and cash reserve.
5. Order gross profit incl. launch: The gross profit generated from the product, including launch marketing expenses.
6. Budget required to launch: The budget needed to successfully launch the product.
7. Stocking for (weeks): The number of weeks' worth of inventory needed.
8. Turns per year: The number of times the inventory is sold and replenished within a year.
9. First year revenue: The total revenue generated in the first year.
10. First year cost: The total cost incurred in the first year.
11. First year profit/loss: The profit or loss generated in the first year.

Bottom Line:

1. Buttom Line: Important Metrics.
2. Export CSV: Export the data in CSV format.
3. Shipping method: The chosen method of shipping the product.
4. Air to Amazon: Shipping the product to Amazon via air transportation.
5. Ocean FCL direct to Amazon: Shipping the product directly to Amazon via full container load (FCL) using ocean transportation.
6. Ocean FCL to Amazon via 3PL: Shipping the product to Amazon via full container load (FCL) using ocean transportation through a third-party logistics provider (3PL).
7. Ocean LCL direct to Amazon Selected Best: Shipping the product directly to Amazon via less than container load (LCL) using ocean transportation, with the best option selected.
8. Ocean LCL to Amazon via 3PL: Shipping the product to Amazon via less than container load (LCL) using ocean transportation through a third-party logistics provider (3PL).
9. Turns per year: The number of times the inventory is sold and replenished within a year.
10. Landed cost: The total cost of producing and shipping the product.
11. Product gross profit: The gross profit generated from selling an individual product.
12. Product gross profit %: The percentage of gross profit in relation to the product's selling price.
13. Breakeven selling price: The minimum selling price required to cover all costs and achieve a breakeven point.
14. ROI %: Return on Investment, the percentage of profit earned in relation to the investment made.
15. Annualized gross profit: The projected gross profit for the entire year.
16. Annualized ROI %: The projected return on investment for the entire year.