How To Calculate The Profitability Of An Amazon Product For Online Arbitrage?

Can you really tell if an Amazon product is worth your time and money for online arbitrage? 

Let’s put it this way: you can figure it out — but not with guesswork. 

If you’re serious about it, you’ll want a clear and simple way to determine whether a product is a winning deal or not. 

That’s what I’m here to help with today.

Recently, I teamed up with Oleg Kuzmenkov from Seller Assistant App to tackle a question every online arbitrage seller faces: how do you calculate product profitability?

Get Free Trial and 10% Off on Seller Assistant App with Code VOVA10

This article is your one-stop guide to understanding profitability for Amazon online arbitrage. 

I’ll break it down step by step, including a tool that makes the process faster and easier. 

Stick around, and I’ll even share a free trial and discount for a tool I use myself — the Seller Assistant App. 

Let’s get started!

Read Next: How To Use Seller Assistant App Extension – A Must-Read

Understanding Profitability in Online Arbitrage

Here’s the main question you need to answer: Is the product profitable?

Profitability is key to success in online arbitrage. 

As a general rule, aim for products with at least a 20-30% ROI (return on investment) and a few dollars of profit per unit. 

Without hitting these benchmarks, you risk spending time and money on products that won’t deliver the returns you need.

The Traditional Method: Amazon’s Revenue Calculator

One way to find out if a product is profitable is by using Amazon’s Revenue Calculator. 

It’s free and available to everyone. 

Here’s how it works:

1. Open the Calculator: Head to Amazon’s website and search for the Revenue Calculator.

2. Input Product Details: Enter the product’s ASIN (Amazon Standard Identification Number).

3. Set the Selling Price: Add the price you plan to sell the product for.

4. Include Your Expenses: Factor in costs like shipping, fees, and product cost.

5. Review the Profitability: The calculator shows your potential profit and ROI.

While this method works, it can be time-consuming if you’re analyzing multiple products.

Discover More: How to Make Profit on Amazon with Retail Arbitrage

The Easier Way (and more detailed way): Seller Assistant

If you’re like me, you’re always looking for ways to save time. 

That’s where the Seller Assistant App comes in. This tool makes analyzing product profitability super simple. 

Worth A Read: Amazon Retail Arbitrage Basics Explained In 40 Seconds

Here’s why I recommend it:

1. All-in-One Dashboard: The app displays all the crucial information right on the Amazon product page. You can see profit margins, ROI, and other key metrics without switching between tabs.

2. Time-Saving Features: It’s fast and efficient. Instead of manually entering data into a calculator, the app pulls everything you need instantly.

3. Data Integration: Save your findings directly to Google Sheets for easy tracking and organization.

Installing the extension is quick, and it works on popular browsers like Chrome, Safari, and Firefox. 

Whether you’re into online arbitrage, wholesale, or dropshipping, this tool streamlines your product research routine. I also recommend you to read about other good extensions for Amazon sellers.

Get Started with Seller Assistant

Want to try the Seller Assistant App? 

Here’s how:

Get Free Trial and 10% Off on Seller Assistant App with Code VOVA10

Once you are ready to buy a subscription, use the discount code VOVA10 at checkout to save 10%.

Bonus Checklist: Download a free Amazon online arbitrage product research checklist here. 

Free Online Arbitrage Product Research Checklist Download 

It’s a handy guide to help you pick profitable products

Conclusion

Calculating profitability doesn’t have to be a headache. 

Whether you stick with the traditional Amazon Revenue Calculator or upgrade to the Seller Assistant App, the key is to know your numbers. 

Focus on products with solid ROI and a few dollars of profit per unit. 

With the right tools and mindset, you’re on your way to making smarter, more profitable decisions.

Ready to simplify your online arbitrage journey? 

Give the Seller Assistant App a try and see the difference for yourself. 

Happy selling!