Joining the FBA program means being able to maximize your profits without hiring employees to handle inventory, storage, packing, and shipping. You’ll also cut out the need for someone to work in customer service. Once you join Amazon FBA, you’ll need to understand just how much you can make. There are tons of Amazon FBA revenue calculators out there, including Amazon’s very own.
What is the Amazon FBA Calculator?
The Amazon FBA calculator is a tool that calculates margin and breaks down the fees associated with selling products. This can help you better research products to sell on Amazon and understand your margin potential.
When Should You Use the Calculator?
It’s best to use the calculator when you’re researching new products to sell on the Amazon FBA program. You can get an idea of your potential profits and have a clearer picture of what the FBA fees will look like on a particular product.
The calculator can also help you determine how the margin will be impacted by raising or lowering the sale price or cost of each particular item, making it an incredibly useful tool for all Amazon sellers.
This information can then be used to price your items so that you can remain competitive and profitable at the same time.
Also, if you’re considering switching from merchant-fulfilled to the FBA, you can see a comparison of the costs and profit margins for each model.
Fees Included in Amazon’s FBA Calculator
As you may know, the FBA has a few different fees associated with the services. The FBA calculator makes it easy to get an accurate sense of these fees. The fees included in the FBA calculator are:
Selling on Amazon Fees
These fees are made up of the referral fee and variable closing fee. The referral fee is the charge for selling your items on Amazon and is calculated as a percentage of the sale price or minimum dollar amount. The variable closing fee only applied to certain products, like books, music, videos, DVDs, video games, consoles, and software.
Fulfillment By Amazon Fees
The Fulfillment by Amazon Fee is calculated based on the weight and dimensions of the products you sell. You’ll pay a fulfillment fee and monthly storage fee. These fees cover the costs of labor for picking, packing, and shipping, along with packaging supplies, shipping to the customer, and customer service.
The monthly storage fee is based on the volume of the product in cubic feet.
Using the Amazon FBA Calculator
To use the Amazon FBA calculator, you’ll have to know certain information about the product so that it can effectively calculate the fees. One of the most important pieces of information is the product price. Make sure to use the calculator a few times for each product so that you can determine the best price point that will bring in the big bucks while still beating out the competition.
Using the calculator is easy and requires very little time. It’s definitely a great tool to help you make the most out of your Amazon FBA account.