Amazon FBA Calculator – Everything You Need to Know
So, are you all-set to sell physical products using Amazon FBA? We are sure this is a eureka moment for you.
While growing revenue and buzzing orders could sound tempting, in the end, this might not just be enough to pay the bills.
Most Amazon sellers end up losing a lot of money because they don’t understand their costs. In reality, the return that you get on your investment and the net profit is what determines if you have a successful business.
While this sounds pretty straightforward, calculating your total costs could be a tough task.
Costs of Selling on Amazon
Even before you decide to launch a product and go through its entire lifecycle, we will highly recommend you determine your costs.
You can break down the costs into two key categories:
- Upfront costs: these include costs of goods, marketing, shipping and the like.
- Variable costs: think of storage fees, returns, FBA fees, and more
Add to these visible costs, there are other hidden costs too which often go unnoticed. These include business costs like payroll, taxes, and insurance. Marketing costs like content marketing and PPC and other costs like disposal costs, packaging costs, and the like.
While we cannot handle all these different complications here, we, sure, can evaluate some of the most difficult ones – FBA fees, and Amazon Fees.
What is an FBA Fee?
Amazon charges a range of fees. One of these fees is called a referral fee where they charge a fee for selling products on their site. Typically, this fee is around 15% of the sales price, though this could vary based on the category of the product.
Further, if you choose to go with Amazon fulfill, you will have to incur additional fees as well. Essentially, there is a fulfillment program hosted by Amazon which is called Fulfilled by Amazon (FBA).
This program is a hassle-free way of managing storage, distribution, and shipping. Here, all you need to do is send products to Amazon’s warehouses and they take care of everything else – from distribution to storage, shipping, returns, and customer service.
Naturally, all these benefits come for a fee, called the FBA fee. The fee varies based on the weight and size of the item.
How Amazon Profit Calculator Can Help?
To make all the calculations easier for you, the platform offers its own Amazon fee calculator that calculates the fees you incur on an item. Also known as FBA Amazon Calculator , Amazon Fee Calculator, and FBA Revenue Calculator, the calculator determines the Amazon FBA fees for the provided ASIN, based on its current size, and weight.
A lot of sellers choose to use FBA because of the perks that it offers. When you choose FBA, you get Prime badge, this boosts the visibility of your product on the platform, and also provides prime delivery to the buyer.
However, it has certain drawbacks as well. They charge fee based on the weight and size of the item, which is variable, and could prove to be highly expensive as the weight and size of the product increases.
Challenges of Using an Amazon FBA Calculator
Although the Amazon calculator sounds great, it has its own limitations as well. To start with, you will need to visit their website each and every time. This not only makes it inconvenient but difficult to use too.
Additionally, since FBA profit calculators are based on the uploaded sizes and weights, the cost calculations can, at times, be wrong, when the listing doesn’t mention the right details,
This is when our free profit calculator helps you out!
Use Our Free FBA Calculator on the Go
Let’s admit, Amazon FBA calculator is great, but then it doesn’t serve the intended purpose fully. It doesn’t help you in calculating all the involved costs, and even if it does, the calculations could be wrong, and you will have to visit their website every time. This is where our free calculator helps you out and provides you with exact costs effortlessly.
Think no more, and try out our FBA revenue calculator now. Do you have any queries? Let us know in the comments below.