Amazon has a lot of helpful solutions built-in. An Amazon FBA calculator is one of them. Let’s find out how to use it right and what insights you can get from it.
Amazon FBA Calculator – Quick Introduction
Selling on Amazon can be as beneficial as costly. To reduce sellers’ expenses and let them compete on equal terms, Amazon has developed and launched several programs that you can join and, depending on the program, cut some fees and shipping costs.
Still, you have to predict and manage them in a smart way. Fortunately, a ready-made tool allows you to predict your expenses even before starting the Amazon business. Amazon FBA calculator is the one for those using Fulfillment by Amazon, so let’s find out how to use it right.
What Is An Amazon FBA Calculator
As the name suggests, an Amazon FBA calculator is an online tool that allows you to calculate your possible expenses for selling a specific product and compare your expected revenues in cases you use or don’t use the Amazon FBA program. Amazon FBA calculator is developed for different countries since Amazon has separate FBA policies for each of them.
To get started with it, you don’t even need to create a Seller Central account. Instead, you can use it in guest mode.
What Costs Can You Calculate With This Tool
Amazon FBA calculator allows for finding out the following types of Amazon costs.
- Referral fee.The referral fee (the amount you have to pay Amazon for each of the products you have sold with its help) is different for various categories, so calculating it in advance, especially when you consider expanding your assortment, makes a lot of sense.
- Fulfillment fee.Calculating fulfillment fee and comparing it with the opportunity to fulfill on your own is another helpful feature for the sellers that doubt the necessity to join Amazon FBA.
- Other costs.Shipping, storage, and seller proceeds costs can also be calculated with the help of an Amazon FBA calculator.
Important note! Amazon proceeds from your selling plan (individual or professional) when calculating the fees. Also, the figures you get are nearly accurate but still approximate since Amazon has the right to change its charges anytime.
When Using Amazon FBA Calculator Makes the Most Sense
- Business plan development. Launching an Amazon store without a business plan is pretty risky. What’s more, you are better to have a well-developed financial plan. An Amazon FBA calculator can help you develop it and ensure the profit you expect matches the amount you can make on Amazon.
- Product research. If you plan to sell a new product on Amazon, make sure to use this tool as well. Calculating the costs in advance will help you determine the feasibility of getting started with a new product.
- S. Also, consider the costs for new product promotion, and consider a way to cut them by gathering reliable reviews from your future users. SageMailer Amazon feedback softwarecan significantly help you with this task.
- Pricing strategy development. Suggesting a better price for your products is pretty challenging. However, you can use the Amazon FBA calculator to take one more look at your profits and expenses at the current price and experiment with the options.
How to Use It
So, how to use the Amazon FBA calculator? The process is pretty intuitive and straightforward.
- Get started by either choosing the product you want to calculate the fees for (if you already have a seller account and a running store) or use the keyword search to select the approximately identical product from your niche.
- Next, specify the approximate shipping cost for your location.
- Then, choose the seller fulfillment option – that is, specify how much does it cost for you to pack and ship the order, plus consider labor and customer service costs.
- As the following step, specify the number of units you need to store per month and press “Calculate.”
- After you are done, Amazon will provide you with a comparison chart showing your revenue with and without Amazon FBA. It will also calculate order processing costs and your net profit.
Don’t ignore such a tool as an Amazon FBA calculator. When used right and with a clear strategy in mind, it can provide you with many actionable insights, or vice versa, protecting you from making unreasonable decisions.
Amazon FBA is mostly a beneficial program but calculating the costs and comparing the options available in advance always makes sense.