By Raj Aryan | Last Updated: August 30th 2017
If the items for which you wish to calculate the fees are listed in your Amazon seller account, Amazon has got you covered.
You can use their ‘FBA Revenue Calculator’ and the ‘Fee Preview Report’ for this purpose.
Well, do not worry if you run into such a problem.
In this post, we are going to show you how to work with the FBA Calculator.
We will also discuss with you, the expenses and fees you have to take into account.
Amazon FBA Calculator is a crucial tool for seller who use Amazon’s FBA fulfillment model.
It helps you to accurately determine shipping costs, fees, and other expenses involved in the fulfillment process, in order to allow you to calculate your earnings per sale for each product.
In this blog, we will help you understand the type of costs that you need to consider when calculating profit per unit for your products.
Once that is done, you can validate the viability of an item and whether it will give the profits you need so that you may move ahead with the product procurement and launch.
For the purpose of this exercise, let us assume that we do not have all of the real details for the item, but we will use rough estimates to help us figure out whether the item can meet some fundamental profitability metrics.
This is not explained well in the Amazon’s FBA calculator.
We are assuming it is the charge for handling your FBA products and placing them into the storage of the warehouse.
According to their help page, they charge one US Dollar, for each “normal-size non-media” product.
This is basically the price of having your item listed on Amazon.
Basically, it is the price you pay after Amazon “refers” buyers to your product listings.
This fee is basically the retail cost percentage.
However, it differs for each category.
The minimum referral fee is typically $1.
This is the cost of retrieving your products in the warehouse, packing them, the packing materials used and getting it ready for shipment.
This includes the cost of labor as well.
As the name suggests, it is the monthly fee charged for storing your items in the warehouses of Amazon.
Monthly storage fee is calculated on a monthly basis and per cubic foot.
This charge is also included in the Amazon’s FBA calculator.
It is charged per product for preparing your products before shipping, like shrink wrapping products or applying UPC code labels.
Amazon calculates shipment charges (from the storage warehouse to the customer) based on weight.
What they call “Free shipping” is not really free and as the FBA seller, you will foot the bill for shipping.
However it helps make the pricing attractive to buyers.
As a merchant, you don’t always cover 100 percent of the shipping cost, but a portion of the Prime membership fee is used to offset Amazon shipment charges.
The free FBA Calculator offered by Amazon is only built for estimation of Amazon fees, but not for profit margins calculation.
The FBA calculator provided by Amazon is an excellent tool to compare bottom line earnings estimations between Merchant (FBM) or Fulfillment By Amazon (FBA) models, if you have not yet started selling on Amazon.
But once you start selling on Amazon with FBA, you’ll require more sophisticated tools to assist you track and manage your sales in real time.
The Amazon FBA Calculator is a useful tool for any seller who is deciding whether to use Fulfillment by Amazon (FBA).
With the calculator, a seller can either compare FBA and FBM (Fulfillment by Merchant) fees or simply calculate the fees involved in the FBA model.
It is crucial to know that there are different FBA calculators available for sellers who sell in different countries.
Each of these FBA calculators will account for the particular currencies and the fee differences in these countries.
After you’ve done your calculations and you probably understand which products meet the fundamental profitability metrics, you have to look for an innovative way to maximize your sales.
One of the best ways for maximizing your sales is by ensuring that you receive more five-star product reviews and as many seller feedback responses as possible.
Feedback Robot has been proven as the number one Amazon Feedback Software.
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You generate reviews even while you sleep!
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