The Reduced Profit Range (RPR)

In This Article

• Overview
• A Summary and Discussion of Fees
• Reduced Profit Range
• Low-Price FBA Fee

Overview

This article briefly touches on Amazon Fees and explains how Seller Snap's Repricer aims to keep users profitable with Amazon referral fees using the Reduced Profit Range. 

A Summary and Discussion of Fees within Seller Snap

There are fees that Seller Snap's system will not include in its calculations due to the nature of the fees' availability and variables. Overhead fees based on sales velocity and historical days of supply levels, such as the Low Inventory Fee and Inbound Placement Fees, are not readily considered.

Users can optionally create an average of their fees and add a "projected" fee average via the Additional Cost field.

Adding a fee estimation in this section will enable Seller Snap to include the fees to determine the mins and maxs for that listing and have better Profit/Margin calculations for the listings that include such fees.

Please contact Seller Snap's Customer Support for any further questions.

Reduced Profit Range

If an Amazon fee structure is in two steps, then it creates a pricing range that is less profitable to sell in.

In the example below; if a sale is made at $10 or less, the seller is charged 8% in fees and if it was sold at $10.01 or more, the fee charged will be 15% (with a minimum fee of $0.30).

• If an item is sold at $10, the seller is charged 8% in fees, making $9.20 in profit.
• If the item is sold at $10.01, the charged fee is 15%. This makes $8.51 in profit. Because of this, it would make better sense to sell at $10 than $10.01.
• If an item is sold at anywhere between $10.01 and $10.83, the seller would actually make less profit than if you sold at $10. We call this the "Reduced Profit Range". 

Seller Snap's AI and Win Buy Box repricing methods will automatically avoid setting prices in the "reduced profit range." This means that in cases where the repricer would have suggested $10.50, it would use $10 instead.

If SKUs have a price that falls within the Reduced Profit Range, users will see a warning symbol next to the listing:

Important: While Seller Snap is updated with Fees, the Fee Structure sample shown below is incomplete and might be outdated as Amazon can change fees at their discretion. Please refer to Amazon's official channels for any announcements and updates regarding Fees.

Filtering with RPR

Users can utilize the Customizable Filters section of the Filters menu to find listings that have their minimum prices within the RPR range. If any are found, it's best to adjust the minimum price to a figure just below the RPR.

Low-Price FBA Fee

Eligible listings in Amazon's Low Price FBA Fee will have their own RPR in Seller Snap's system. 

If an eligible listing is found for Amazon's Low Price FBA Fee within its threshold (9.99 and below), it will gain a different RPR unique from the standard price/fee.  

If that listing's price goes outside the threshold, a different set of fees will be used and the RPR for that fee structure will be used.