What Is The Amazon FBA Calculator and How Do I Use It?
You’re an Amazon seller getting started with fulfillment by Amazon (FBA), or at least you want to know if you should. You already have a store, you’ve optimized your products, started using Amazon monitoring software, and you are trying to figure out how you can increase sales and profits even further. As you probably already know, FBA allows you to sell your products in the Amazon marketplace, and you let Amazon use their advanced network of fulfillment centers to pick, pack, ship and handle customer service for your products.
Discovering the true cost of this process can be especially difficult, and perhaps you don’t have the systems in place to sell the quantities you desire while maintaining the accuracy of what the cost associated is with delivering your product to the end user. FBA can allow you to scale your business without needing to develop an advanced back-end system to handing the delivery of orders and the FBA calculator is an Amazon seller tool that will get you up and running on the path to discovery.
You can use the Amazon FBA calculator to discover what the fees will be associated with using FBA for your products! These fees include:
- -Customer service
This is a great first step for those of you that want, or need, to estimate your products true profits and the business financials before you jump on board with FBA and perhaps even more exciting…It’s free.
So how do you use Amazon’s FBA Calculator?
The first step is to open it. For US users it can be found here. For anyone else, you should be able to find the right calculator for your country below:
How to Use the Amazon FBA Calculator
Find your product in the Amazon marketplace. This can be done in the search bar using your product’s name, UPC, EAN, ISBN, or ASIN.
Choose the correct product returned in the search results.
Within the calculator on the right side, you will enter the price of your product/item, the shipping cost to send it to Amazon, and the total cost of your product per unit.
Hit calculate. The FBA calculator will return to you a breakdown of costs based on the information you provided. These estimated calculations will give you an idea of what to expect when using FBA. What you will get it;
- -Revenue (Item Price+ Shipping)
- -Cost (Fulfillment Cost + Selling on Amazon Fees + Cost of Goods)
- -Seller Proceeds (Revenue – Selling on Amazon Fee – Fulfillment cost)
- -Net Profit (Revenue – Cost)
In the left-hand column on the calculator enter in your current numbers required to handle all of your shipping yourself if you have them.
These costs include;
- -Item price
- -Shipping (what you charge the customer to ship it)
- -Cost of seller fulfillment
- -Storage costs per month
- -Labor, packaging material
- -The cost to ship
- -Customer service per order
- -Cost per product
Entering these numbers, you can then do a comparative analysis of the cost for you to continue doing fulfillment on your own vs. using FBA.
You may also want to consider the cost of headaches. While it may be cheaper to continue fulfilling on your own, allowing Amazon to take over may have other benefits worth considering such as more free time. There are a lot of other steps you can take that allow you to focus on your business and what’s important to you when selling on the Amazon marketplace. AMZ Alert offers a few different Amazon monitoring packages available that can help you sell your products by constantly monitoring for a variety of things such as product title changes, reviews, Amazon keyword ranking, and can deliver all of this to you through text notifications.
Whatever your decision may be, playing around with the FBA calculator will help you in the process of making the right choice for you, and your business.