FBA Calculator

Introduction

A good percentage of first-time amazon sellers don’t know how to calculate their TRUE profits. Due to this, they end up losing their money. The solution to this problem is the amazon calculator

Before you venture into selling physical products on Amazon FBA, the first step should be to figure out your profits. This should continue even after the product has been launched. Before you can commit yourself into selling a particular product on Amazon, you have to determine its potential. This means that you consider factors such as the initial cost of investment, costs to be incurred and the estimated sales. The amazon fba calculator can help you know whether the product will be profitable or not. 

Once you have listed your product on Amazon, you need to make sure that your sales are more than the fees. This will make sure that your business runs smoothly. The amazon fee calculator can help you know the amount of fee that you will be paying for selling on Amazon. 


Understanding Amazon Fees

First, you should understand the fees that you will incur for selling on Amazon. The amazon fee calculator can help you know the amount that you will be paying for each type of fee. To simplify your journey visit https://ioscout.io/fba FBA fees constitute the largest percentage of the fee that you incur for selling on Amazon. When selling a single unit, this fee may seem to be insignificant. However, these small amounts will add up when you sell thousands of units to become significant. 

The FBA fees is normally 15% of the cost of the item, and an additional $3 for shipping the item. However, if you need to sell your products as a pro, you will be required to pay an Amazon Professional Seller fee of $39.95 per month. 

Suppose you sell only 40 items in a month. This means that you will part with a dollar for every item you sell, making this fee significant. However, if you sell thousands of items in a month, this fee will become insignificant. This also applies to other fixed costs that you will incur for selling on Amazon. The fba revenue calculator is the right tool to help you make a comparison between your costs and income on Amazon. 


Fixed vs. Variable Costs

Understanding the difference between fixed and variable costs will let you know how to play around on the platform to minimize your costs. Fixed costs can be reduced by upping your sales. Variable costs such as returns and storage fees will scale proportionally to your items. If your products can be purchased in bulk, some of your variable costs will scale down as you increase. You will clearly see this trend when you use the amazon fee calculator . Other variable costs include disposal costs, shipping items back to you and write-offs. 

The marketing costs cannot be ignored. You need to market your Amazon products. This is the only way for you to reach your target market. You can use avenues such as promotions and pay per click. 


Take Advantage of the FBM

Most Amazon sellers don’t like Amazon fulfillment because of its expensive costs. However, there is another option for you, Fulfilment by Merchant (FBM). FBM is when a seller chooses to ship and process all their orders and receives returns directly from customers. Sometimes, the fba profit calculator will tell you that it is a bit cheaper. However, if you are not a Prime shipper, your listings will not have a special Prime badge. This can make you lose potential sales to your competitors, the Prime shippers. 


How to use it

The Amazon FBA fees caters for various costs including order handling, pick & pack, outbound shipping, weight handling, 30-day storage and inbound shipping. To know the amount of fee that a particular product will cost you, you only need to use the amazon fee calculator

While in your marketplace, go to the FBA calculator. Search for a product similar to the one you need to list for sale and select it. Focus on the right hand column of the calculator and enter the price of the item, the cost of shipping to Amazon and the total product cost per unit. 

Lastly, hit the Calculate button. The FBA Amazon calculator will return a breakdown of your Amazon Fulfillment costs showing both the selling fees and the FBA fees as shown below:

Amazon profit calculator

How to Reduce FBA Fees?

There are many costs of selling on Amazon. However, there are ways to keep these costs as low as possible and keep your profits as high as possible. These include the following:

#1: Know the jumps in FBA fees. FBA fees are charged in sized tiers. Know the cut off points and save up to thousands of dollars a month. 

#2: Explore alternative fulfilment methods such as FBM.


Conclusion

The FBA calculator is the right tool to help you know the value of the costs you are incurring to sell on Amazon. The tool will also help you know the amount of profits that you are making from your sales. If you pay close attention to Amazon costs and profits, your Amazon journey shall be a success.