FREE AMAZON TOOLS

Amazon Revenue Calculator and Forecaster

Want updates on how we are growing our Amazon business to $10M? We share real-life failures, wins, tips, and strategies from our Amazon business.

 

With sales growth and conversion rate of , your monthly sales will be and 12 month forecast will be

Current Monthly Amazon Stats
Reset
Linear
Exponential

* Exponential is unrealistic for long term growth

With sales growth and conversion rate of , your monthly sales will be and 12 month forecast will be

12 Month Forecast
546000
273000
273000
50%
54600
109200
109200
20%

How to use the Amazon revenue calculator and forecaster

This Amazon revenue calculator is a manual version. It will not automatically load the data for you.

From seller central, go to:

  1. Reports> business reports > sales and traffic.
  2. Select “by month” and then 3M or more .
  3. Enter the values for “Sessions”, “Order Item Session Percentage” and “Average Sales per Order Item” into the calculator.
  4. “Sales Growth” is how fast your business is growing. For fast growing businesses, “exponential” can be used for the short term.
  5. Enter your average Product COGS %. This number is 100% minus Gross Margin. If your gross margins are 40%, your product COGS is 60%.
  6. Enter your PPC as a percentage of revenue. TOTAL AD SPEND ÷ REVENUE.
  7. Enter your business operating expenses. Most businesses fall between 10-25%.
  • amazon revenue calculator inputs

Questions answered by our Amazon sales calculator

  • How do I get to $1M in revenue?
  • What levers will grow my FBA business?
  • What needs to improve for my SKU?
  • What should I be focusing on?

These are the types of questions our sales calculator will help answer.

If you don’t have a goal in mind, you are driving your business blind. Whether you have a goal of getting to $1M or $50M, there are only a handful of levers in your Amazon business that will move the needle.

amazon revenue calculator
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  1. Sessions: You can increase sessions by improving PPC, listing optimization for better search ranking, or creating new products.
  2. Order Item Session %: If your conversion rate is 20%, but improves by 5% to 25%, your overall sales will increase by 25%. Improve your conversion rates with better images, videos, listing optimization, titles.
  3. AVG Sales per Order: Increase your price or create more expensive SKUs. If your average sales is $10 per order and it becomes $11.50, that is a 10% increase in total Amazon sales.
  4. Product COGS: Reducing your product costs can go a long way to improving your monthly sales. Think of ways to cut packaging, eliminate middlemen, reduce the number of “touchpoints” a product requires to manufacture.
  5. Amazon PPC: The single biggest expense for many sellers. Every percentage decreased is an increase to your profit. Directly correlated 1 to 1.
  6. Business Expenses: Every business has expenses. The leaner you are, the more the monthly profit benefits.

Improving your listing optimization can help improve the first 3 points. Refer to our ultimate Amazon listing optimization guide.

You can enter the data for a SKU and use this Amazon revenue calculator on a per SKU basis. Get the data from “Detail Page Sales and Traffic By Child Item” and plug it into the input fields.

Identify the single biggest weak point of your Amazon business. It may be low sessions, low conversion rates or a low margins. Then focus on improving that one key lever. Repeat. 7 and 8 figure sellers got to where they are because of their ability to improve each of the major levers.

New sellers and sellers who are stuck believe that it’s all about finding that one hit product. Wrong. You have to continually focus on squeezing out every drop of performance. This could mean reducing costs by a few cents, increasing sessions via outside traffic, improving conversions from 30% to 35% with videos and images.

Find that biggest weak point in your business stats and improve on it.

Every business is different. But look for the lever with the lowest hanging fruit.

Which one is easier?

  • Improving your order value by 10%
  • or launching a brand new product?

Increasing the price of your best seller from $10 to $11 can easily boost your Amazon revenue by 10%. However, creating a new product and getting to break even could take 6 months and tens of thousands of dollars.

Find the lever that offers the biggest bang for your buck and improve on that specific lever.

Using the calculator for an individual SKU is the same process. A SKU is a good, average or bad performer.

The goal is to:

  • make the good SKUs great
  • make the average SKUs good
  • make the bad SKUs average OR liquidate

Apply the same low hanging fruit method. What is the weakest point of the product?

  • Is the conversion low? Not enough reviews?
  • Is the price too high compared to the competition? How can you lower the cost?
  • Is the information on the page hard to understand? How can you create a better story of the product?
  • Are you margins too low? What needs to be done to increase the price and keep the shoppers buying?

This is the ultimate question.

Of all the things you can be doing and working on your business, what should you be focusing on? If you are the owner of the business, should you really be focusing on removing backgrounds from images?

To take your business to the next level there are only 6 major lever you should be strategizing, testing and implementing.

  • Sessions – What can be done to increase traffic to listings?
  • Order Item Session % – What can be done to improve conversion rates?
  • AVG Sales per Order – What can be done to increase order values?
  • Product COGS – What can be done to reduce product costs?
  • Amazon PPC – What can be done to optimize PPC?
  • Biz Expenses – What can be done to reduce business expenses?

Get updates to our $10M sales goal

Want updates on how we are growing our Amazon business to $10M? We share real-life failures, wins, tips, and strategies from our Amazon business.