The Amazon FBA (Fulfilled By Amazon) calculator is a free tool that every beginner in sales should take advantage of if they’re thinking of selling their products on Amazon through FBA.
It can also be helpful for merchants who want to weigh things if they’re going to transition their business to Amazon fulfillment. The tool will calculate your products’ potential profit and revenue.
If you want to learn how to sell on Amazon successfully, you should familiarize yourself with the FBA calculator.
The beauty of the revenue calculator is that you can use it depending on the country you want to sell your products. It will adjust to the currency of the country of your choice. Below is the list of available Amazon FBA calculators.
a. United States
b. Canada
c. Mexico
d. United Kingdom
e. France
f. Germany
g. Spain
From its namesake, it is really like using your standard calculator where you sum items and get results based on the formula you presented. The tool will help you get the potential revenue of your product or your competitors.
First way to get the ASIN is through the address bar of your browser. Select the product you want and once you get onto the landing page, go to the address bar. Let’s use an umbrella as an example.
The one in bold letters is the product’s ASIN, you can quickly identify it because it comes after “/dp/”.
The next way to get the ASIN (Amazon Standard Identification Number) of a product. Go to its product page and scroll down until you reach the “Product Information” box and you will see the ASIN listed there.
You will add a value to “Item Price” that’s within the Amazon Fulfillment column. The value you will put depends on the price margin you come to conclusion with upon checking your competitor’s prices.
You can put any value if you don’t have any idea or you can just leave it blank. Trying different values in Step 2 and 3 is a good practice when it comes to experimenting with the margin impact of your chosen product.
It is the overall manufacturing cost and shipping fees. This includes the total amount you paid to a private label or a trading company upon ordering.
All fields will have values, including the “Selling on Amazon Fees”, “Fulfillment by Amazon Fees”, and “Total Fulfillment Cost”.
We will talk about these Amazon FBA fees later in detail. Then at the bottom of the calculator, you will see “Net Profitability” that will show you your product’s “Net Profit” and “Net Margin”.
For example, let’s say our product item price is $30.00.
Step 2 – Item price – $30.00
Step 3 – Ship to Amazon – $2.00
Step 4 – $5.00
After calculating, including FBA fees, you will get a net profit of $8.14 per item sold.
That’s the beauty of the Amazon FBA profit calculator!
It can really help you with your business decisions in being more competitive or how to get ahead of your competitors since you sell the same product.
It will give you an estimate that you can compare with your competitors. It will help you decide to sell in the same price range with incentives and will offer a lower price but still gain reasonable profit.
“This Fulfillment by Amazon Revenue Calculator should be used as a guide in evaluating FBA only. Amazon does not warrant the accuracy of the information or calculations in this Fulfillment by Amazon Revenue Calculator.
Independent analysis of the output of this Fulfillment by Amazon Revenue Calculator should be conducted to verify the results. Please consult the Amazon Services Business Solutions Agreement for up-to-date costs and fees. The New Amazon Fulfillment option reflects your current Selling on Amazon fees and FBA fulfillment fee.”
So please do not interpret the results of the calculator as the ultimate decider for the product you want to sell or any movement in your product pricing. It will only act as a guide to help you gauge the strategy you want to execute with your Amazon business.
These are the instances where you are going to use the Amazon FBA profit calculator:
New product – usually, if you want to expand your business by selling a new product, you would want to know the net profit and net margin you will get when you start selling the new product on Amazon FBA.
Price movement – the market is unpredictable, and your customers may have tricks up their sleeve to get ahead of you in selling a product you both have. So the fee calculator can help you understand the margin impacts if you would lower or raise your prices.
Switching to a different fulfillment – the Amazon fee calculator can help you make a sound decision if you are going to transition from an FBM (Fulfilled By Merchant) or SFP (Seller Fulfilled Prime) seller account to an Amazon FBA account.
In this section, we will discuss the FBA fees you’ve been wanting to know! Knowing these fees by heart can contribute to your deciding factor whether to push through with your current product of choice or move on with another.
Amazon Fee is paid by sellers depending on account type. The seller fees have two categories:
Individual Seller Account: $0.99 per item sold. Limited to 40 items and below.
Professional Seller Account: $39.99 per month. For 40 items and above sold every month.
Referral Fees: can go as low as 6% or as high as 45% of the total sales cost. Depending on the product category.
Refund Fees: $5.00 or 20% of the refund charge for processing it on your behalf.
FBA Fees are dictated by the size and weight of the product you are selling. The fee covers the packaging, shipping, and handling. You can see the complete list here.
FBA Storage Fees – since you will be using their warehouse to store your product. Amazon will charge you a rental fee. It can be a monthly charge or long-term. You will get charged long-term fees if your product is still in their warehouse for more than 180 days.
If your product is slow-selling and has been on the warehouse’s inventory for a minimum of 1 year, you will get another FBA fee, a charge of $0.15 per unit.
FBA Removal Order Fee – is another fee that will be charged to you when you decide to pull out or dispose of a product in your inventory.
All fees are deducted to your Amazon account if no funds are available, your registered credit card will be the one to pay for the FBA fees.
After using the Amazon fee calculator and finally decided to push your business with FBA, the next thing you would want to do is to optimize your FBA strategy so you can make sure you will hit your target sales each month.
You need to do the following to have a strong marketing plan and strategy, and other sellers would hire professional help to create a solid marketing playbook.
The Amazon FBA calculator is one of the best guides you can get on how to sell on Amazon FBA successfully. It will help you get a general idea of the monetary investment that you need to shell out.
It is not just for beginners in the e-commerce field. It is also helpful with sellers who want to transition to FBA. However, one must always keep in mind that the calculator is just your guide.
It can only give you a general idea of potential profits and losses. It will provide you with a margin to gauge your competitors as well.
But by the end of the day, your sound decision, discipline, and determination to have a steady stream of income should be the deciding factor.
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