It’s important to make sure after all your hard work you’ll have ample profits to enjoy.
A. Free Amazon profit calculator app chrome extension by Amzscout
This is an amazing FREE tool you can use in your product research phase.
It’s really easy to use and you don’t even need to log in just follow the steps below:
1. Install the Amazon FBA Calculator.
2. Go to Amazon.com.
3. Find the product you’re interested in and open the listing.
4. Open the FBA calculator.
5. Enter your product, shipping, and CPC costs.
6. Your fees and profit margins will automatically be calculated.
Don’t forget to include the customs cost, taxes, and other fees.
If possible you should get a DDP Shipping Quote.
DDP stands for “Delivered Duty Paid” which means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport, and ready for unloading at the named place of delivery.
DDP shipping will save you time, money, and stress.
For the CPC costs, a rough guide is the cheaper the product the cheaper the CPC costs are.
So, for products below the $15 range, you can expect CPC costs around $0.2 – $1 per click.
B. Free Amazon profit calculator app by Helium10
You can use the same steps above. They simply need the same amount of information.
The difference is you need to make an account first.
C. Free Amazon profit calculator app by Amazon themselves
This is a more complicated tool but is the most accurate.
Also, you can easily make your own comparison between the fulfillment methods (FBA or FBM) and see if there is an opportunity for saving money by switching.
This is important so that you can keep track of not only FBA costs but all of your costs such as product samples and images, shipping, returns, and marketing.
From the moment you start selling a new product and everything else, you will always know if your bottom line is taking a hit.
Here is the list of things an Amazon FBA Calculator can do:
It helps you to calculate profit and fees which includes, referral fees, variable closing fees, and shipping fees
Gives you information on applicable duties and taxes
It also calculates the item’s net weight and dimensions from the product box or individual item packaging.
This helps in calculating your minimum FBA inbound shipping cost for a single unit of the product.
Using an FBA Calculator is important to calculate profit and fees for your Amazon business.
The way the Amazon FBA Calculator works is pretty simple.
Step 1:
Copy-paste the product ASIN or keyword from Amazon to the Amazon FBA calculator. ASIN stands for Amazon Standard Identification Number. It is 10 letters and/or numbers that serve as a unique identifier assigned by Amazon.com to your product.
Input the values for all the fields into the Amazon profit calculator app
STEP 3:
Click calculate to start comparing the product profit and to learn the FBA fees.
This Amazon profit calculator app is a great free tool that every seller should use to get commission and earnings estimates for every product – existing or potential – sold on Amazon.
It’s so easy to use and can save you a lot of headaches and lost income. If you’re not worried about it because you don’t have time, consider hiring someone to do it for you – the amount you save in the end could cover their fees and still earn more. A lot of money.
Fulfillment By Amazon (FBA) vs Fulfillment By Merchant
If you’re planning on selling products on Amazon, you must choose whether to use Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). But what’s the difference between the two? And which is best for your business?
The answer isn’t always simple, and it depends on the type of business you have, your current capacity to meet orders, and the amount of time you want to spend working on your business—and that’s just a start. We’ll go over both of these fulfillment methods in detail so you can decide for yourself what’s best for your business.
Fulfillment by Amazon (FBA)
With FBA, Amazon stores your products in one of their fulfillment centers and then handles the packing and shipping of your product to your customers. This means you don’t have to worry about keeping track of inventory, sourcing packing materials, or dealing with customer service questions. FBA can be a great option for sellers who want to focus on growing their brand instead of managing logistics.
Here’s how the FBA system works:
Shipping Products to Amazon
You have dozens of warehouses at your disposal, you decide which products you want to send and they tell you where they will be sent after creating a shipping plan.
Classification and Storage of the Products
Once Amazon receives the products, it takes care of organizing them and adding them to an inventory. This way your items will be stored safely and in case one is damaged, the marketplace will reimburse you.
A Sale Occurs
When a customer makes a purchase, Amazon handles the entire transaction. They accept payment and update inventory automatically.
Product Delivery
Amazon will take your product, packages it in a box, and sends it to the customer. When they ship order, they list the carrier, ship date, and estimated delivery date of the package in customer’s account Account, and in shipment confirmation email.
Customer Service
Once the customers has received their order, Amazon follows up with them to make sure that they have been satisfied. If returns or questions arise, they also handle them. Of course, keep in mind that any comment you receive about the list of products is up to you and you have to be the one to answer it and take the necessary measures.
AMAZON FBA COST
FBA Amazon fees can vary based on a number of factors: type and size of products being stored and shipped, length of time they are stored, seasonality, etc.
SALES FEES
They are charged immediately after the sale of the product. There are two types of fee in this category:
Fee Referral. Its size depends on the category, but in most cases, it is 15% of the purchase price.
The fee of Fulfilment (includes delivery of goods to the buyer, payment for order processing, acceptance, packaging). It depends on the period of the year and the size of the product. Amazon has 8 categories by size, depending on the measurements of the product it falls into one of them. This determines the amount you pay per item for each sale. Rates differ depending on the season. In the pre-holiday months, they are lower.
MONTHLY FEES
Fee of professional selling plan – $ 39.99
If you have an Individual selling plan, the fee structure is different: Amazon charges $ 0.99 per sale, but you don’t pay anything per month.
FBA monthly storage fee (fee for storing goods in Amazon warehouses) – depends on the size of the goods, their quantity (in cubic feet), and the month.
IRREGULAR FEES
Long-term storage fee.
There are 2 tariffs: if the product is in stock for more than 6 months, or 1 year. The amount depends on the shelf life of the goods, size, and quantity
Inventory Placement Service Fees
(payment for the distribution of goods between different Amazon warehouses). It is charged after the creation of a shipment if the goods are sent to only one warehouse and Amazon distributes them to other locations (yes, the site itself determines which warehouses to send the goods to and you cannot influence this).
Fee Removal
There are three ways to get rid of inventory: destroy the item, ship it to any address from the Amazon warehouse, or dispose of it. If you confirm the removal order, you pay for each unit.
Processing Fee Returns.
Applies when a buyer returns an item from a category for which Amazon offers free shipping back to the warehouse (Apparel, Watches, Jewelry, Shoes, Handbags & Sunglasses, Luggage categories.
Unplanned Service Charges
Charged if the product is improperly packaged or the barcodes are incorrectly pasted.
FBA Label Service Fee.
Every item that is sent to the Amazon warehouse must have a barcode generated in Seller Central. If you don’t want or can’t stick the barcodes yourself, Amazon will do it for you for only $ 0.20 per item.
Prep the Service Fees the FBA
If you want Amazon to pack the item as required, you need to pay a certain amount for each item.
To calculate the revenue per unit of goods, pay attention first of all to the first two types of fees – you definitely cannot avoid them. Irregular fees are charged only in certain cases, but it is better to be forewarned and armed.
Fulfilled by Merchant (FBM)
If you’re selling your own items to consumers, or even handling your own inventory, you’ll want to look into FBM.
Fulfilled by Merchant (FBM) is a way of selling on Amazon as a third-party seller. You’ll manage your own inventory and shipping, and you’ll need to rely on your own processes for customer service. Amazon will help make sure the logistics work out for you, but the day-to-day management of things is going to be on you.
When you work with FBM, you can customize your shipping options, choose your preferred carriers and shipping speeds, and even offer multiple shipping options to your customers.
More importantly, you’ll also have complete control over when your packages are shipped and when they reach their destination.
Selling through Amazon's Fulfillment by Merchant option has a few perks, including
You have control over your stock and can quickly respond to any changes in demand.
You can provide better customer service and make sure your products are up to spec.
You can lower your costs.
Your products will be eligible for Prime shipping.
In addition to Fulfillment by Merchant, there is a new, rapidly growing FBM fulfillment method — Seller Fulfilled Prime (SFP).
If your seller account is Professional and you meet the minimum requirements, you can apply for SFP so that your products will display the Amazon Prime badge on orders fulfilled via your own warehouse or third-party logistics providers.
There are some requirements to be eligible for SFP, including:
- A Professional seller account
- A pre-fulfillment cancel rate of less than 1.5%
- Same or one business day shipping
- Same or one business day shipping
- Sellers must work with approved Buy Shipping Service carriers.
So what method should you use for your Amazon venture? Here’s a quick overview to help you decide:
You should use FBA If…
You should use FBM If…
You are selling small and lightweight products
You are selling high-end products that are oversized and heavy
You want Amazon to handle your customer support services
You want to have control over your customers
You want to have access to sell to Amazon Prime Customers
You want more control with your inventory
If the costs will much higher if you fulfill your products
If you have your own warehouse and logistic
Product volume is high
Your product volume is small
FINAL THOUGHTS
When it comes to deciding on fulfillment for your business, there are a lot of factors to consider. Do you have the resources to do it yourself? Does it make sense for your company, if you have a smaller number of items or an irregular schedule, to use Amazon’s fulfillment services?
With the Amazon profit calculator app, you can see exactly how much these services will cost you. You can also compare Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) and see which one makes more sense for your company right now.
Amazon’s Disclaimer: Fulfillment by Amazon Revenue Calculator should be used as a guide in evaluating FBA only. Amazon does not warrant the accuracy of the information or calculations in this Revenue Calculator. An Independent analysis of the output of this Revenue Calculator should be conducted to verify the results.
If you’re a new Amazon seller, here’s another guide on how to calculate your estimated profit margin.
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