There are a lot of newbie FBA sellers who lose a lot of money since they don’t know how to analyze a product’s profitability properly. When you comprehend your numbers, you can make money in any market.
As a result, you must account for all of your expenses, including product COGS, cargo, shipping, and fulfillment fees, in your profit margin calculations. Regarding the overall costs of running your e-commerce business, how Fulfillment By Amazon and Fulfillment By Merchant differ. Let’s explore this post!
Use the Amazon Fee Calculator Correctly
This tool makes it easy to see the costs connected with products already being sold on Amazon. Amazon provides an FBA seller cost calculator to assist you in determining whether FBA or FBM is more cost-effective. In the end, it’s not about the in-depth examination of profits. Their goal is to convince you that it’s more cost-effective to use Amazon FBA rather than fulfill your products.
You can use our PRO Amazon Business Spreadsheet to calculate that. Allowing Amazon to manage deliveries comes with additional risks, such as inventory loss, large customer returns, increased margin needed to offset fees, and a rise in PPC expenses. Nevertheless, that’s an unrelated subject matter.
Amazon FBA Seller Calculator – How does it work?
For inexperienced sellers, Amazon’s fulfillment fees might be a bewildering maze. When you enter the ASIN into Amazon’s FBA charge calculator, you’ll be able to see the following costs for any goods.
- Costs associated with placing a removal order
- Expenses related to return processing
- Storage costs for inventory
- Fees for long-term storage
- Pick-up and shipping costs (now all included as Fulfillment Fees)
- Delivering inventory to the warehouse through an Amazon-affiliated transport
- Fees for referrals (AKA closing fees)
How to use FBA cost Calculator
Enter the product title, UPC, EAN, ISBN, or ASIN into the appropriate retail calculator.
To find out the costs and specifics, use a competitor’s product UPC, SKU, and ASIN search bar on amazon’s fee calculator. Search “Bluetooth earphones” into Google, and a few results appear.
When you choose a product to input into the calculator, you’ll see more information about it. The ASIN, package size, and weight are all displayed. Amazon’s FBA fees are determined by the item’s length, width, and significance, respectively. The way they figure their fees is this: This is what the basic calculator seems like now that it has been activated. These expenses can be included here if you’re shipping from your online store or shipping via FBA.
When you click on “cost of seller fulfillment,” a little box will come up where you may input more specific data, such as how much you pay:
- Monthly storage
- the material used to package goods
- Delivering to a buyer
- Client service.
Simple form fields in the dashboards provide a comprehensive breakdown of all costs, such as selling costs, FBA service charges, and an expected net profit margin.
It doesn’t cost anything. Using Amazon’s charge calculator is the easiest way to determine how much competition is paying for their products and services. Our net profit calculator or Correct Product Pricing calculator can be used to acquire the most accurate and detailed information and analysis from this information.
However, Amazon’s calculator has a lot of room for improvement. The only drawback is that you can get a skewed picture in the end. We overestimate the value of our time and resources. Using the FBA profit calculator, you may streamline your margin calculations and reduce high costs, reducing possible ROI.