How Does AutoDS Calculate Product's Profit?

Learn how the AutoDS platform calculates the profit of your products and their selling price

Before explaining how the profit calculation works, please start by reading the following article - How To Set Up Your Preferred Pricing Settings For Your Products?

The product's total profit on the orders and products page is calculated the same, and by the fees you have inserted on your pricing settings for each supplier

(Settings➞Choose supplier➞Pricing). You can learn more about the fees here

How do we calculate the profit?

It is simple. Let's take the following example.

Click on the ⋮ 3 dots menu and choose to edit.

 

Click on the Variants (tab) and then Edit:

And you will see all preferred pricing settings that you set for the item:

The profit calculation formula is: 

(Sell Price-Fees)-Buy Price= Total profit

 

If we apply it to this example:

($33.99-14%)-$25.35= $29.23-$25.35= $3.88, that's the total profit as you can see also on the image above.

Keep in mind this is the expected profit without possible additional charges like taxation on the purchase item. 

 

On the Orders page, you will find that the same total profit is accepted:

But, in opposite to the products page, the buy price, taxes, and fees are editable in the Orders page and if you change one of these parameters, the total profit will change.

 

Please note that when it comes to a US supplier that charges state tax, it will be deducted from the final profit shown under the Orders page profit. (when placing an order manually, you must manually add the tax to the order)

The tax fee cannot be calculated before an item is sold, since the amount depends mostly on the US state from which the customer buys the item. Each US state has a different tax %.

 

FAQ: 

How does AutoDS calculate the selling price?
Here's the formula for the selling price: 
Source Price + Additional $ profit + (Source Price * Profit %) 
Then you divide the result with the opposite of the break-even as a percentage (100-BE%) e.g.  If Break-even is 20%, you divide with 0,80

 

Why does my buy price on the source site is now higher than the one displayed in my order?

It might have occurred between scans, meaning, the item was purchased according to the data of stock and price from the previous scan.
AutoDS scans every 1 hour (one of the fastest in the market today).
Unfortunately, we cannot prevent these cases from happening - there's no 100% guarantee, as there can always be more frequent changes on the source site. 

 

Why when I change the selling price of my product it also changes the % profit or fees? 

If you have the Set Price Cents Value in your pricing settings for this supplier, the system will have to adjust the price so it will get the correct value. If you uncheck it, you will see that the changes you are making will not cause a change to the other values. 

 

 

If you have further questions that were not answered in this article, please do not hesitate and turn to us at the support chat - we will be more than happy to assist you.