Amazon FBA·
tips
My system for tracking inventory costs
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Anonymous Hustler
5 months ago
After years of messy spreadsheets, I finally built a system that works. Sharing here in case it helps anyone.
The Problem: I kept losing track of my true COGS because I was buying the same product at different prices from different suppliers.
My Solution:
1. Created a master inventory spreadsheet with columns for: SKU, supplier, order date, quantity, unit cost, shipping cost, prep cost
2. Use weighted average cost for each product
3. Update my "true cost" monthly
4. Compare against Amazon's estimated fees to calculate real margins
Key insight: Don't forget to include:
- Shipping TO Amazon
- Prep materials (polybags, bubble wrap, etc.)
- Your time (I value mine at $25/hour)
This helped me identify 3 products that were actually losing money once I factored in everything!
The Problem: I kept losing track of my true COGS because I was buying the same product at different prices from different suppliers.
My Solution:
1. Created a master inventory spreadsheet with columns for: SKU, supplier, order date, quantity, unit cost, shipping cost, prep cost
2. Use weighted average cost for each product
3. Update my "true cost" monthly
4. Compare against Amazon's estimated fees to calculate real margins
Key insight: Don't forget to include:
- Shipping TO Amazon
- Prep materials (polybags, bubble wrap, etc.)
- Your time (I value mine at $25/hour)
This helped me identify 3 products that were actually losing money once I factored in everything!
2 replies
Replies (2)
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Anonymous Hustler·5 months ago
This is gold! I made the same mistake early on - thought I was profitable until I actually tracked everything. One thing Id add: dont forget to factor in returns. My return rate is about 3% and that definitely impacts real margins. Also storage fees if products sit longer than expected.
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Anonymous Hustler·5 months ago
Great system! Would you consider sharing a template? Even a basic structure would help. I use Inventory Lab for this now but always looking to improve my tracking. The $25/hour time valuation is smart - too many people forget their time has value.
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