You might be selling your products on Amazon FBA. One of the essential tasks you need to figure out when selling on Amazon FBA is probably figuring out your profitability. That is imperative. Figuring out your profitability is necessary both before launching the product and after. This is important. You can calculate both your revenue and profitability using an FBA Calculator. To know more, read on.
It is a general grievance among many Amazon sellers that they lose out on a lot of money because they do not do this. Of course, that is the all-encompassing term for both the FBA revenue calculator and FBA profit calculator. So here are a few steps which you can use to figure out how to maximize the profits or calculate FBA.
Figuring Out Your Costs
The costs that you incur while selling the products can be categorically divided into three sections. They are:
- Upfront costs (samples, cost of goods, shipping, photography)
- Variable costs (FBA fees, storage fees, returns, etc.)
- Marketing costs (promotions and pay per click)
What Comprises FBA Fee?
The long and short of it is that the FBA fee is the cost that is associated with selling on amazon. You can calculate it as 15% of the item’s price plus an additional $3 for handling and shipping the products. It may look huge at first, but it is minimal when you consider the facilities that Amazon provides you.
How FBA Revenue Calculator Helps
There are a lot of extra costs that are incurred when selling on amazon. Like we never consider the cost of refunds and so on. They are major since they have to include the fees of disposal and shipping the item back to you. Other than that, a person may face various business costs like insurance, payroll taxes, etc.
To make it short, the calculator helps you figure out the revenue that you are drawing by selling on amazon.
The Amazon FBA Revenue Calculator
Amazon’s handy tool is a dream come true for any seller. This calculator categorically explains your revenue and the profit after the FBA fees.
Amazon FBA fees include costs for lots of different parts of the fulfillment service. This includes:
- Order handling
- Pick & pack
- Outbound shipping
- Weight handling
- 30-day storage
- Inbound shipping
To find out the fees of a product you might be interested in, you have to head over to the site. That means you go to the calculator on amazon and figure out a similar product that has been listed that serves your interest.
The moment you enter the details and hit calculate, the calculator will give you an inevitable breakdown.
It will show you your amazon Fulfillment costs, including selling frees and FBA fees. It will also show you your Net Profit and Net Margin.
Benefits Of FBA
- Customers will naturally want to buy Amazon fulfilled products. Amazon, too, will prioritize sellers using the FBA.
- Customers who are Prime members automatically are promised delivery in a day or two. The FBA warehouses are near the airports, and that makes this very possible.
- When you sell your goods via Amazon FBA, they are automatically eligible for Amazon Prime, Free Two-Day Shipping, and other benefits. Consequently, your interests will bear the Amazon Prime logo, allowing you to reach a broader audience.
- Amazon is fulfilling your orders. That gives you the golden opportunity to grow your business. When you are running low stocks in the warehouse, Amazon will notify you. This gives you a lot of free time. You can expand your company here too.
- The FBA products are prioritized over the others. The amazon algorithm automatically pushes these products towards the first page. Even the search engine is built to optimize these products.
- The customer service that is provided to the amazon FBA is impressive. No buyer wants to be left hanging and have a bad experience. The FBA takes care of just that. It makes sure that the returns, if any, are timely and hassle-free. The refunds need to reach the customers to arrive on time.
If a product has a customer service feature, it is easily more sellable than a product without one. Poor feedback is unconditionally excluded to help the store retain high popularity as well. So you need not worry about the fact that lousy delivery will affect your store’s popularity.
So here we get to see that the FBA Calculator gives us an excellent idea of how viably we can run the business. It provides us with the revenue and profit quotient. FBA has a lot of benefits as well. So if you are a small store looking forward to expanding your business, you need to figure out amazon FBA.