Conducting your own business via Amazon can be an ultimately lucrative option. However, the profit doesn’t come out of nowhere. Instead, a profit is a result of hard work devoted to analysis of the expenses and thorough calculations.
As the person who sells merchandise on Amazon, you should probably already bear in mind that your revenues are largely influenced by factors, different from the product’s price. It is not surprising that considering every single fee on your own is often tough. Software, such as an FBA Calculator for Amazon, is something you may want to use to succeed in counting potential profit and making sure you don’t miss a single component.
Explaining Your Fees
As you have already acknowledged earlier, your profit is shaped by multiple types of costs. Essentially, you will need to consider all the costs to make your mind on which product will definitely bring you sufficient revenues. In other words, FBA Amazon calculator gives you an accurate vision of which products are worth selling.
To better understand your fees, you may bear in mind that FBA calculator groups them into the following categories:
- Variable costs (delivery and storage fees, costs of returns)
- Promotions cost (cost per click)
- Upfront costs (the initial price of goods, free samples)
What is FBA Fee?
FBA fees , widely known as Fulfillment by Amazon costs, are expenses that you encounter while storing in warehouses and delivering your product to your customer. FBA fees, in other words, imply the costs related to your Amazon selling activity.
Amazon stores your merchandise in their own warehouses and covers many procedures, such as shipment, refunds management, and other supportive services. For each specific procedure, Amazon will charge you a particular fee. The fees typically account for approximately 15% of your product’s overall price, so summing them up by using an FBA fee calculator undeniably comes in handy. You may always refer to Amazon FBA Guide to get a more detailed look on how exactly you can sell with Amazon FBA.
What is an Amazon FBA Calculator?
Amazon FBA fee calculator implies an advanced tool for controlling your profits. It allows you to discover what you will be expected to pay for a specific product, considering its dimensions. Depending on how big your product is, how many units of a particular good you are going to sell, and other essential characteristics, you will quickly calculate the fees. In case you want to know better how to use Amazon FBA calculator, here’s a short overview.
Using an amazon FBA revenue calculator makes oneself able to define fulfillment fees based on weight and crucial dimensions and identify the cost of shipping to the fulfillment center. Additionally, an FBA revenue calculator makes it real for you to see precisely your prospective profits. In order to get the most precise overview of the net profits, FBA Calculator can ask you to mention the dimensions of your merchandise as accurately as possible.
In which marketplaces Amazon FBA Calculator can be used?
You may begin using an FBA profit calculator provided that you are a resident of the US, UK, Canada, Mexico, or some European countries: Germany, Spain, Italy, France. Those who live in India can also freely begin using an FBA calculator.
There is a point that you will need to consider: if you have a European account, it will not work in the US. If you want to connect your, for instance, Spanish account to the one in Canada, you will need to create a unified account.
What costs are included?
Using an amazon calculator FBA will allow you to count shipment costs, the cost of fulfillment by seller, and, finally, fulfillment by Amazon costs. Besides, a calculator will also include fees for picking and packing the order.
How does Free FBA Calculator work?
The FBA calculator is very straightforward and user-friendly. First, you need to decide on the product (or products) you wish to sell on Amazon. Once you have made up your mind, you can enter the product’s dimensions, weight, the price you want to set. Also, you will need to include all the possible costs and calculate them. In this case, you need to mention the costs of shipping from the producer and other costs that are likely to pop up.
Right after you’ve mentioned all the product details, you will see how much Amazon FBA will charge you, from packaging and storing to refunding. The latter costs, in turn, will let you calculate the exact revenue.
What is the difference between FBA and FBM costs?
FBM, which is also known as fulfillment by a merchant, is the option you can choose to avoid paying delivery, storage, and other fees. Sometimes, FBA might be exceptionally costly, so switching to FBM can be a right choice. While FBA will be an expensive option, it guarantees the flexibility of your selling activity.
FBM also includes fixed costs, storage, and shipping expenses, but they are not stable. Fulfilling goods on your own is believed to save more money, but may be less promising and winning, as opposed to FBA.
Can I reduce FBA costs?
No matter how challenging FBA may seem at first, it is rather a considerable benefit for your business. Knowing some possible ways of how to reduce your fees, you will inevitably end up with sufficient profits. Initially, you can save plenty of financial resources just by checking what exactly causes significant fee growth. Think about reducing your product’s dimensions, for example. Or, you may use Seller Fulfilled Prime and seek some alternative fulfillment methods.
How do I start Amazon FBA?
It is rather simple to get started with Amazon FBA. Provided that you already have an Amazon account, you will need to research the products you want to sell. After you’ve decided, you will need to take care of the sourcing issues. Another crucial step is to create a brand and essential product listings. And, of course, all these steps won’t be problematic since FBA will take care and serve your products.