What is the Amazon FBA Profitability Calculator and How to Use It?
The Amazon FBA Calculator is nothing more than a tool to compare Amazon FBA versus FBM (Fulfillment by Merchant) or to just figure out the costs associated with FBA.Any seller who is wondering whether to employ Fulfillment by Amazon (FBA) or pursue a different fulfillment strategy can benefit from using this tool. As an FBA or even FBM seller, you can use the calculator and benefit from it.
For Amazon sellers who sell in several nations, there are various calculators accessible. Each of these calculators will account for the various currencies and any charge variations in those nations.
How to Use the FBA Calculator?
The FBA Profitability Calculator aids sellers in determining the precise amount that Amazon intends to charge for each item that they submit to stock in an Amazon fulfillment centre via FBA. You can enter one ASIN and the item’s pricing to get an overview of the FBA fees related to that particular item. You can use the calculator tool even if you fulfill your items through FBM, but you will need to enter your own delivery charges.
The FBA Calculator can give you an extra edge, enabling you to compare the costs of your own fulfillment versus Fulfillment via FBA in real-time.
What Do the FBA Calculators Take Into Account?
These are the fees that need to be considered by sellers when selecting whether to fulfill and sell products through Amazon:
Fees for referrals
These expenses are associated with the fee for referrals that Amazon levies on each product being sold.
According to Amazon, referral fees typically range from 8% to 15%. However,the exact percentage can change based on the type of goods.
Fees associated with fulfilling orders through FBA include additional charges for handling heavy packages, incoming and outgoing shipping, and more.
For its selling plans, Amazon levies the most fundamental recurring fee. The Professional plan is for $39.99 per month, whereas the Individual plan is $0.99 per item sold. Additionally, there can be selling fees.
The handling of orders, preparation services, selection, and packing, as well as the long-term or 30-day storage of inventory, can all result in extra costs for sellers.It is possible, though, that fulfilling the things themselves would end up being more expensive.
Even though a seller may not be responsible for some costs (such as weight handling) when fulfilling orders on their own, it is possible that other fees are sufficiently high to make the switch to Amazon FBA financially lucrative.
Things to Remember
- Weight and dimension of an item are used in the calculator to determine the Fulfillment by Amazon cost.
- A fulfillment fee and a monthly storage fee make up the price.
- The labor costs for packaging materials, picking, shipping to the customer and customer care are all covered by the fulfillment charge.
- Based on a product’s cubic foot volume, the monthly storage price is determined.
Other FBA expenses, such as item removal order fees, return feesandlong-term storage fees, are not included in the calculations because they only apply in certain situations.