Why is a profit calculator so important to a dropshipping business?

Basically, when you do not have a clear idea as to how to maintain profitability, it is only a matter of time before your business falters.

Thankfully, you can easily and effectively devise a profit calculator through using a common software program such as excel.

** FACT: Automation is Vital for Cutting Time and Energy Out of the Calculation Process **

Automation is not exclusive to dropshippers and resellers.

It is a common trait integrated into all manner of businesses for the same reason: it streamlines business operations and allows a company to run more efficiently.

Those selling through Ebay would probably find it much better if their business cut down on the number of manual steps and replace them with automated ones.

This makes business operations a lot leaner and, potentially, more profitable.

** How It Is Done: The Nine Simple Steps of Setting Up a Profit Calculator on Excel **

Here is a very brief detailing of what is needed to set up a profit calculator on Excel:

* Decide what it is you wish to sell
* Create an Excel file with all the needed headers for the calculation
* Provide the data for purchasing and shipping costs
* Add in the Ebay cost of an insertion fee
* Set up space for the Ebay Price
* Calculate the final listing price
* Calculate the PayPal fees
* Add up all costs
* Figure out the profit margin (Selling price minus all costs)

** Are there any ways that you could use excel formula to change the calculator so it works for you? **

There are ways that an excel formula could be modified to change a calculator so that they work a little better for your needs. Some of these steps include:

* Provide an input section for a \\

View all Rose Li's articles

---

About the Author:
Rose Li is the PR Manager for Chinavasion, China's premier dropshipper of wholesale electronics. For western quality consumer electronics at China prices.

More Economy articles