Understanding Profit Margin vs. Markup is essential for Amazon sellers to optimize pricing strategies and enhance profitability. Profit margin reflects the profit retained after expenses, while markup determines the selling price based on costs.
Net Profit Margin is a vital metric for Amazon sellers, reflecting the percentage of revenue left as profit after expenses like sourcing, shipping, and fees are deducted. A higher margin signifies better financial health, enabling strategic reinvestment and growth.
Cost of Goods Sold (COGS) Analysis is essential for Amazon sellers, as it calculates the direct costs of producing and selling products. This analysis impacts profitability, pricing strategies, and inventory management, helping sellers optimize their operations.
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