Becoming an Amazon seller can increase the size of your business. FBA lets you avoid the costs of shipping, and buyers are more comfortable using FBA.
To set your prices in a way that is competitive with other sellers, and still earn profits, you must be able to manage FBA costs and the purchase price, and the price at which you sell.
Amazon provides a range of categories that are used in calculating commissions as well as fulfillment fees along with shipping costs. It’s not easy to calculate the price of each item manually.
In this article, I’ll describe how you can utilize the Amazon FBA calculator to determine the value of your products and take better business decision-making.
Amazon FBA calculator
If you’re a vendor trying to decide whether or not to make use of Fulfillment-by-Amazon (FBA) or another method of fulfillment then the SellerApp’s Amazon FBA Calculator can provide great aid to you. A seller can use this calculator to determine FBA fees or to compare FBM with FBA.
This FBA profit calculator provides you with an accurate estimation of the profit you earn on each product and sale.
Amazon FBA calculator determines the appropriate fixed closing price according to pricing category, shipping costs about size, volume weight, weight or quantity, pick-and-pack fee, and any storage costs which may be applicable.
Simply select the category by your product before entering the cost.
Amazon revenue calculator will provide details of the total expenses associated with fulfillment. You will be able to see information like the monthly cost of storage cost, packing materials, labor costs, shipping expenses as well as customer expenses.
The breakdown of your calculation reveals the selling costs, fulfillment costs, and net profits. It is simple to alter your numbers to get the best selling price, depending on the purchase price. It is easy to do this and without any complex calculations.
There will be no need to calculate manually the FBA calculator ever again after you’ve learned how to make use of it. This will help ensure that you are always aware of the exact margin of profit for every transaction.
If you’re a seller looking to determine whether you should make use of Fulfillment-by-Amazon (FBA) or another method of fulfillment then the Amazon FBA Calculator can be a huge help to you. A seller can use this calculator to calculate FBA fees, or even compare FBM against FBA.
Amazon FBA fees
1. Referral costs
The fees for referrals are an amount that “commission” Amazon pays for each item offered on its platform.
The fees are not due to be paid in advance. Referral fees are taken out of your Amazon account after the purchase is made.
2. Pick & Pack
Cost of removing the item from warehouses as well as packaging it (including packaging materials) and transporting it.
3. Weight Handling
Amazon bases shipping costs upon the weight. Even though “free shipping” is not free but the FBA merchant is the one paying for the cost. But, it is attractive to consumers.
Although you might not be able to pay for all costs, a percentage of the Prime fee is part of the compensation for Amazon delivery costs.
4. Monthly Storage
It is the cost per month for storing your product in Amazon’s warehouse.
When should you use the Amazon FBA Calculator?
The FBA Calculator is an extremely valuable tool when you’re searching for products that are new to the market. It can provide you with an estimate of FBA charges per unit, as well as an approximate estimation of your net profit and margin once you begin selling the product via FBA.
It will also allow you to understand the impact on margins when you decide to increase or reduce the cost of an item or cost of production.
The calculator will help you establish your cost-of-product budget and establish the minimum price for customers to ensure your business is profitable. If you are planning to switch between FBM to SFP then the Amazon FBA Calculator can be employed.
If you’re just beginning to sell your products on Amazon, the FBA calculator will assist you in comparing the bottom-line earnings between Seller (FBM) as well as FBA and FBM. Once you’ve begun selling on Amazon via FBA it will be necessary to use more sophisticated tools to manage and monitor your sales.
Recommended guide: How to do product research on Amazon in 2022.
