Profit Simulator: Test What-If Scenarios for Amazon FBA
Published: January 2025
What if you increased your price by $2? What if you reduced costs by 10%? What if sales volume doubled? Our Profit Simulator lets you test these scenarios without making real changes.
Why Use Profit Simulation?
Profit simulation helps you:
- Test pricing strategies safely
- Identify cost reduction opportunities
- Plan for volume changes
- Make data-driven decisions
- Avoid costly mistakes
Common Scenarios to Test
Price Changes:
- Increase price by $1, $2, $5
- Decrease price for promotions
- See impact on profit and volume
Cost Reductions:
- Negotiate better supplier prices
- Optimize packaging to reduce size tier
- Reduce shipping costs
Volume Changes:
- Double sales volume
- Scale up production
- Enter new markets
Real-World Example
Current scenario:
- Price: $29.99
- Cost: $12
- Monthly sales: 100 units
- Monthly profit: $850
Scenario 1: Increase price by $2
- New price: $31.99
- New monthly profit: $1,050
- Profit increase: $200/month (+23.5%)
Scenario 2: Reduce cost by 10%
- New cost: $10.80
- New monthly profit: $1,020
- Profit increase: $170/month (+20%)
Both scenarios improve profit, but price increase has bigger impact!
Best Practices
- Test multiple scenarios before making changes
- Consider demand elasticity (price changes affect volume)
- Factor in all costs, not just product cost
- Compare scenarios side-by-side
- Start with small changes and scale up