
Note: At the moment Net Margin Repricing is only available for Amazon but will be added to eBay in the future. Let us know if this is a must have feature for you by reaching out at suggestion@repricer.com
Tax Calculations in Repricer
Repricer gives you 4 options to choose from when determining where tax is applied as part of your Net Margin and profitability calculations. You can choose your desired approach on your Channels Net Margin tab,
- Check the sidebar on the left of your screen
- Click Settings > Channels
- Click on the Channel you wish to update
- Click on the Net Margin tab
Apply Tax - Based on the final sale price of the product
This is the default option within Repricer and it will calculate the tax due based on the final sale price of your product. With this approach, tax is a variable cost, which increases as the sale price of the product increases, just like your Amazon Referral Fees. Below is the calculation taken by Repricer,
([Item Cost]+([Shipping Cost] + [PickPack Cost]) + ([Variable Fee] + [FBA Fee]))Alright, that block of maths is probably a bit much, so lets break it down, step by step.
/ (((100-([Desired Margin]+[Listing Fee]))/100)-([TAX]/100)/((1+([TAX]/100))))
- Step 1: Add your Costs and fixed fees together. Your fixed costs and fees don't increase based on the final sale price of the product, so they are used first. Your fixed costs are Item Cost, Shipping Cost and PickPack Cost. Your fixed Fees are your Variable Fee and FBA Fee.
- Step 2: Taking into account your tax and Listing Fee, we calculate what price you would need to sell your product at to make your desired margin
Apply Tax - Based on my Item Cost
This option allows you to calculate your tax based purely on the Item Cost field within Repricer. Whatever value you enter into the Item Cost field has tax added to it before the Net Margin and Profitability calculations continue through your other costs and fees. Below is the calculation taken by Repricer,
([Item Cost] * (([TAX]/100)+1)) + ([Shipping Cost] + [PickPack Cost]) + ([Variable Fee] + [FBA Fee]) / ((100-([Desired Margin] + [Listing Fee]))/100)Lets break it down, step by step.
- Step 1: We take your Item Cost and then we add tax on top
- Step 2: We take your remaining fixed costs and fees, then add them together
- Step 3: Taking into account your Listing Fee, we calculate what price you would need to sell your product at make your desired margin
Apply Tax - Based on my total costs (Item, shipping, pickpack)
This option allows you to calculate your tax based on your cost prices fields within Repricer. Whatever value you enter into the Item Cost, Shipping Cost and PickPack cost fields has tax added to it before the Net Margin and Profitability calculations continue through your other costs and fees. Below is the calculation taken by Repricer,
(([Item Cost] + ([Shipping Cost] + [PickPack Cost])) * (([TAX]/100)+1))Lets break it down, step by step.
+ ([Variable Fee] + [FBA Fee]) / ((100-([Desired Margin] + [Listing Fee]))/100)
- Step 1: We take your fixed costs (Item Cost, Shipping Cost, PickPack Cost) and add them together
- Step 2: We calculate and apply tax on top
- Step 3: We take your remaining fixed fees, and add them together
- Step 4: Taking into account your Listing Fee, we calculate what price you would need to sell your product at make your desired margin
Apply Tax - Based on my total costs + Amazon Fees
This option allows you to calculate your tax based on your combined costs and fees, fixed and variable. After your costs and fees are calculated, we'll add tax on top before calculating your desired margin. Below is the calculation taken by Repricer,
(((([Item Cost] + ([Shipping Cost] + [PickPack Cost]) + ([Variable Fee] + [FBA Fee]))Lets break it down, step by step.
/ ((100-([Listing Fee])) / 100))(([TAX]/100)+1)) / ((100-([Desired Margin]))/100)
- Step 1: Add your fix costs and fixed fees together. Your fixed costs and fees don't increase based on the final sale price of the product, so they are used first. Your fixed costs are Item Cost, Shipping Cost and PickPack Cost. Your fixed Fees are your Variable Fee and FBA Fee.
- Step 2: We calculate your listing fee and add this on top
- Step 3: We then calculate the tax and apply to determine at what price you need to see your product at make your desired margin