SellerLegend

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How to Configure Profit, ROI, and Margin Formulas ​

Overview ​

SellerLegend enables merchants to customize how profit, ROI, and margin calculations work. By default, each formula follows Amazon's most common definition, but you can adjust which cost elements to include based on your accounting practices.

Accessing Formula Settings ​

Navigate to Products and Inventory > Products List or Sales and Customers > Orders, then click the gear icon at the top right. In Product Settings, scroll to find the relevant formula section and select Edit Formula.

Profit Formula Configuration ​

The profit calculation follows this structure:

Profit = Revenue - (Selected Costs)

You can toggle these cost elements on or off:

  • FBA Fees & Commission
  • Promo Amount
  • Taxes
  • Cost of Goods
  • Shipment Cost
  • Miscellaneous Cost
  • PPC Cost
  • Operating Expenses

The cumulative formula updates dynamically as you make selections.

ROI Formula Configuration ​

ROI measures return relative to costs:

ROI = (Profit / Costs) x 100

You independently define both the profit numerator and cost denominator by selecting which expenses to include, allowing flexible cost-return analysis.

Margin Formula Configuration ​

Margin indicates profitability as a percentage:

Margin = (Profit / Revenue) x 100

This formula lets you customize both profit components (cost deductions) and revenue adjustments separately.

Key Insight: Screen Variation ​

Different screens display different aggregations. Product-level views show per-unit metrics with only product-specific operating expenses, while account-level tiles safely incorporate company-wide operating expenses once at the total level to avoid duplication.

Practical Example ​

With $1,000 revenue, $150 FBA fees, $400 COGS, $50 shipping, and $200 PPC spend:

Excluding PPC: Profit = $400, ROI = 66.7%, Margin = 40%

Including PPC: Profit = $200, ROI = 25%, Margin = 20%

This demonstrates why formula configuration matters significantly for accurate reporting.

Tips ​

  • Hover over any profit, margin, or ROI field for component breakdowns
  • Use profit for bottom-line assessment, ROI for cost efficiency, margin for cross-product comparison
  • Reset to defaults anytime via the popup button