Your Cost Prices are important in configuring profit and determining min/max prices using a formula or profit-based strategy setting. Though cost prices are not a necessity to reprice your listings, we highly recommend adding them.
Your Cost Prices are required if you are to use any of the following min/max strategy settings: Profit-based min/max prices, ROI-based min/max prices, or a Formula.
Profit-based Min/Max Prices allow you to specify a target profit on your listings, either as a percentage or fixed price of your total sales price. Our system will automatically determine min and max prices for your listings after accounting for marketplace, shipping, and/or FBA fees. You can learn more about this setting here.
ROI (Return on Investment)-based Min/Max Prices allow you to specify a target return on investment on your listings. Our system will automatically determine min and max prices for your listings after accounting for marketplace, shipping, and/or FBA fees. You can learn more about this setting here.
You can make a custom formula to set the min and max prices of your listings based off of your specific needs. Basing formula off your items cost will allow each listing to have different min/max prices based off of this amount. While basing the formula off of the item's cost is recommended, you can input other values (current price, original price, etc.) in its place. You can learn more about this setting here.
Cost prices are also essential when analyzing your profits. By adding cost prices to your account, you will be able to see how much of your revenue is profits. This information will give you insight into whether you need to adjust your min/max prices, invest in more inventory, and generally how well your business is doing.
You will be able to see all your profit information in the Analytics section of your account. Here you will also find sales data, buy box information, and recommendations.