Ecom Growth Engine

The Ecom Growth Engine is a planning model for inventory-based Amazon sellers. Instead of guessing, it connects the real levers of the business — how much working capital you deploy, your pricing, and how fast your stock turns — into a single annual forecast of revenue, costs, and net profit. Set a target and it works backwards to show the working capital you'd need to hit it. Everything runs in your browser; nothing is stored or sent anywhere.

How to use this tool

1. Pick your objective — a revenue target or a profit target, and enter the number you're aiming for.
2. Enter your working capital — the inventory budget you deploy each cycle.
3. Set your pricing — either as COGS % of revenue, or as a price multiple (selling price ÷ cost).
4. Set your sales velocity — turns per year, or a cycle length in days.
5. Enter your cost percentages — Amazon + fulfilment, ads, and returns/other.
6. Read the forecast — annual revenue, the cost breakdown, net profit and margin, ROI on working capital, and estimated units per day.

How the model works

The engine is built on the relationship between working capital and stock turns:

• Revenue per turn = Working Capital ÷ COGS rate (your capital buys stock, which sells for more).
• Annual revenue = Revenue per turn × turns per year. (Cycle length converts to turns as 365 ÷ cycle days.)
• COGS, fees, ads, returns are each a percentage of revenue; net profit is what's left.
• ROI on working capital = Net profit ÷ working capital.
• Working capital needed back-solves the same model from your target.

Inputs & outputs at a glance

Inputs

• Objective: revenue or profit target
• Working capital per cycle
• Pricing: COGS % or price multiple
• Velocity: turns/year or cycle length
• Cost %: Amazon+fulfilment, ads, returns/other
• Average selling price (optional, for units/day)

Outputs

• Annual revenue with progress to your goal
• Cost breakdown (COGS, fees, ads, returns, net profit)
• Monthly and per-turn revenue
• Net profit and margin %
• ROI on working capital, and working capital needed to hit target
• Estimated units per day

Worked example

Tips & edge cases

• Turns are the hidden lever — doubling how fast stock sells roughly doubles revenue from the same capital.
• Be honest with cost %s — Amazon + fulfilment plus ads usually take a bigger bite than new sellers expect.
• COGS % and price multiple are two views of the same thing — a 3× multiple equals a 33.3% COGS rate.
• This is a planning model, not a guarantee — real results depend on demand, ranking, and execution.
• Use a realistic selling price in the optional field for a meaningful units-per-day figure.

Glossary

• Working capital: the cash you tie up in inventory each cycle.
• Turns per year: how many times you sell through and replace your inventory in a year.
• COGS rate: cost of goods as a percentage of revenue.
• Price multiple: selling price divided by cost — the inverse of the COGS rate.
• ROI on working capital: annual net profit divided by the capital deployed.

Important disclaimer

This tool is a simplified educational model provided for general informational and illustrative purposes only. The figures it displays — including annual revenue, net profit, margin, ROI, working capital required, and units per day — are hypothetical estimates generated entirely from the assumptions you enter. They are not a forecast, projection, valuation, or guarantee of actual or future results.

The model relies on simplifying assumptions, including that inventory sells through fully and consistently each cycle at the margin and velocity you specify. It does not account for real-world factors that materially affect outcomes, including but not limited to: unsold, slow-moving, or obsolete stock; failed or underperforming product launches; competition and price erosion; changes to marketplace fees, advertising costs, or policies; returns, damages, and refunds; taxes and duties; cash-flow timing and financing costs; supply-chain disruption; and shifts in customer demand. Actual business results commonly differ — often substantially — from any figure shown here.

Nothing on this page constitutes financial, investment, accounting, tax, legal, or business advice, and it should not be relied upon as the basis for any business or financial decision. You should conduct your own due diligence and consult a suitably qualified professional before acting. By using this tool you acknowledge that AmanCentral, Aman Central Ltd, and their affiliates accept no liability whatsoever for any loss or damage arising directly or indirectly from your use of, or reliance on, this tool or its outputs. Use of this tool is entirely at your own risk.

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