If you have products that you want delivered all over the world, Amazon FBA (fulfilment by Amazon) is a powerful means to achieve that.
From being associated with Amazon, to the ease of package and delivery, there are many advantages of using FBA, but you need to know how to calculate your cost so you don’t run at a loss.
This is where FBA calculator comes in. With this fulfilment by Amazon calculator, you will be able to calculate how much you are going to spend on packaging and delivery, with respect to the type and size of goods you sell.
The FBA calculator helps you to have an estimate of what Amazon will charge you for their services, which will aid you to know your total profit at the end of each sale.
If you are contemplating the use of other methods of fulfilment besides Amazon, this calculator will help you compare the expenses of those methods, after which you will end up making a wiser and more economic decision for yourself and your consumers.
FBA calculator comes in different versions depending on your country. Some of these versions include German FBA calculator, French FBA calculator, USA FBA calculator, Spanish FBA calculator, Mexican FBA calculator, Italian FBA calculator, and so on.
As a seller, if you don’t sort out your total cost and determine your profit before selling an item, your chances of running at a loss will be high, and nobody wants that.
Even if your item is small, and the profits don’t seem big, there is still a need for the use of FBA calculator because as time goes on, you will make bigger sales, which means you are risking higher amounts of money.
If you intend to sell huge amounts of products, it is normal to worry about what Amazon will charge you, but what you should know is that they occasionally reduce the cost when the volume is high.
Think of it as a discount due to bulk purchase. Basically, there are two types of cost you should be concerned about as an FBA seller; the referral cost and the variable closing cost.
If you do not sell media products, this fee will not apply to you, as it is only charged on things like books, courses, songs, and so on.
This is the amount you get charged for being associated with Amazon. The percentage charged per product is dependent on the type of goods and the category of products that your items belong to.
The range lies between 8 to 15 percent of the product sale category, and the minimum amount is one dollar.
Apart from these two, there is also a fee you will pay amazon if you sell less than 40 products. It is known as individual sellers free and costs only 0.99 dollars per item. Remember to include your own labour cost when calculating, it is also very important when determining your true profit.
The size and weight of an item are what basically determines how much Amazon will charge for fulfilment.
The services that Amazon will render to you are charged in two parts; the first part includes order handling, inbound shipment, pick up and packaging of products, weight management, and outbound shipment.
The fees charged for these services are the fulfilment aspect of your Amazon cost.
The second part is simply the storage of your goods, which is usually for 30 days. Your items will be weighed and you will be billed per volume (cubic feet).
You can have Amazon store your products for as long as you need, but you will be paying a monthly fee every 30 days for the service.
It is easy to use FBA revenue calculator. Once you get it, look for your product. You may not find the exact product type, but you will surely find something similar.
When you pick the product on the calculator, go to the fulfilment column and type in the required information, the results will give you an estimate of what your profit will be.