A supplier-negotiation technique that calculates the maximum acceptable cost of goods (COGS) per unit by working backward from a target selling price, a target profit margin, and known Amazon fees/fulfillment costs — before ever contacting the supplier.
Formula: selling price − target profit − Amazon fees/fulfillment costs = maximum cost-per-unit ceiling.
Apply: run your product through the Amazon Revenue Calculator Tool to get fees and fulfillment costs, apply the Rule of Thirds (33% Net Margin) Amazon Profitability Heuristic (or another target margin) to fix your required profit, then subtract both from your selling price. Reject any supplier quote above that ceiling and move to the next supplier or product rather than negotiating down from their number.
This turns a profitability target into a hard cutoff for supplier selection rather than a post-hoc check: in the worked example, a $11.38 ceiling was set before any supplier conversation, and quotes above it were an automatic pass.
Из тем: Product Research & Validation