Take control of your sourcing budget by mastering data-driven purchase planning.
Why Forecast Your Sourcing Costs?
For online sellers and importers, unpredictable costs are the biggest threat to profitability. Without a clear forecast, shipping fees, service charges, and fluctuating product prices can quickly erase your margins. The Hoobuy Spreadsheet
Key Data Points to Calculate in Your Spreadsheet
An effective forecasting model is built on three core pillars of data. Track these metrics for every order in your spreadsheet:
1. Average Order Cost (AOC)
Calculate this by summing the total product costs from multiple orders and dividing by the number of orders. This establishes your baseline for inventory expenditure.
AOC = (Sum of Product Costs) / (Number of Orders)
2. Average Shipping Weight & Cost
Record the weight and corresponding shipping fee for each parcel. This helps you understand the logistics cost per unit, which is crucial for pricing your final products.
3. Consolidated Service Fees
Account for all additional charges: consolidation fees, packaging materials, insurance, and any platform service fees. These small costs add up significantly.
Building Your Monthly Forecast
Once you have historical data, project your future monthly spending with these steps:
- Set Your Purchase Volume:
- Apply the Averages:Average Order Cost.
- Add Logistics & Fees:
- Create the Formula:
Projected Monthly Spend = (Orders Planned × AOC) + (Orders Planned × Avg. Shipping) + (Orders Planned × Avg. Service Fee)
This projection gives you a clear financial target and prevents budget overruns.
Tips for Effective Planning with Hoobuy
- Update Regularly:
- Plan for Variability:
- Compare Suppliers:
- Link to Pricing:
- Plan for Variability: