How to calculate the full cost of purchasing a batch of goods?
The price per kilogram, pallet or piece is just the beginning. True profitability depends on logistics, labor, waste and sales speed.
The most common calculation error involves comparing the purchase cost with the sum of retail prices. Mixed batches must include unsellable products, discounts, commissions, handling time and capital tied up in the warehouse.
Count the cost of entry
Add up the price of the goods, transport to the warehouse, bank fees, currency conversion, loading and any customs or documentation costs. Split costs by lot, pallet, kilogram and estimated piece.
Save the exchange rate with the date to later compare the plan with the actual result.
- goods
- transportation
- currency and bank
- additional fees
Add the cost of preparation
Sorting, testing, cleaning, picking, anonymizing labels, photos and issuing offers consume employees' time. Even if you make them yourself, they have a cost.
Measure your throughput on a trial pallet instead of guessing how many pieces you handle per day.
- man-hours
- packaging materials
- testing and repairs
- photography and descriptions
Assume losses and rebates
Not every piece will reach the planned price. The part will be faulty, incomplete, seasonal or will require a large discount. Build at least a cautious, base and good scenario.
In a batch without a manifest, the buffer should be larger than in a batch with a confirmed list and tests.
- unsalable goods
- price reductions
- customer returns
- disposal cost
Include sales channel
Marketplace, store, wholesale and live commerce have different commissions, rates and service costs. One product may have a high retail price but low profitability after commission and advertising.
Assign categories a real channel, instead of counting all items according to the highest possible price.
- commissions and payments
- advertising
- shipping to the customer
- sales time
Measure the result after the end of the game
Compare the plan with actual sales, losses and uptime. Record the result by source, category and item class. Your next decision should be based on your own data.
The most important indicators are value recovery, margin after all costs and the number of days needed to sell the inventory.
- margin after costs
- value recovery
- stock rotation
- share of losses
Sources used in this article
Compare available lots
Check the parameters of a specific lot.