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Seller Central
How to use Amazon's FBA calculator?
This Amazon FBA revenue calculator provides sellers a better view of the costs involved in running an Amazon FBA store. Similarly, using the Amazon FBA Calculator at the onset of the business helps FBA sellers decide what products are worth launching in their Amazon store. That is why it is important for sellers to know how to use the FBA calculator.
Amazon FBA fees included in the FBA calculator
Without the help of an Amazon FBA calculator, it would be difficult for Amazon FBA sellers to truly understand FBA costs and fees associated – the said fees are outlined below.
When to use the FBA revenue calculator
Amazon FBA calculator is used mostly by top Amazon sellers to do product research. This is the best time to take advantage of this free Amazon seller tool.
Alternatively, the Amazon FBA calculator is also used by top Amazon sellers when it comes to repricing. The FBA revenue calculator provides insights for them to raise or lower the sale price of their products.
As a complementary tool to that of an Amazon repricer, the FBA calculator provides Amazon sellers with a clear picture of the profit margin impacts. Hence, giving sellers ideas on what product cost budget range they should follow to remain profitable.
How to use FBA revenue calculator
After being introduced to the purpose of the Amazon FBA calculator and the fees involved in an FBA transaction, here are some tips on how to utilize the FBA calculator for product research and checking of margin impact.
STEP 1:
To start using the FBA calculator for product research, you can use any of the search terms (e.g. round clock, wooden clock, round wooden alarm clock) associated with the product or even its ASIN, EAN, ISBN.
To make things easier for new sellers, we will use the ASIN for this example. New sellers can easily check the ASIN in the product information section still found on the product listing page.
Once found, simply copy and paste the ASIN to the FBA CALCULATOR SEARCH BAR and CLICK SEARCH.
STEP 2:
Now that the product corresponding to the inputted ASIN is on display, sellers may begin placing the values in the Amazon fulfillment column. By doing so, the seller will determine the potential margin for this particular alarm clock.
To get a sense of the price range for the chosen product, the seller may also search other Amazon stores or listings selling similar items. Apart from searching Amazon for a similar product, the seller may also check on the suggested products just below the listing.
Assuming that the seller is interested in becoming an FBA seller or already an FBA seller, be sure to only focus on “Amazon Fulfillment.” In the box provided, input the desired item price.
For this example, we will input $20.00 as its sale price or the item price.
STEP 3:
After inputting the value for the item price, the seller will then have to input the value for “Ship to Amazon” under the Fulfillment cost. The said input box represents the average per-unit price of an item a seller is planning to sell.
However, if the seller is not familiar with the average per-unit price, they may leave the field blank. For this example, we will assume that the shipping cost would be $0.40 per unit of the alarm clock.
To help sellers determine which fee will apply per unit, CLICK HERE.
STEP 4:
After the “Selling on Amazon Fees”, sellers should then fill in the “Cost of Product field.” This is a critical field to be completed, for this pertains to the “all-in cost” of the item sellers will be selling on Amazon.
The “Cost of Product” field simply pertains to the overall cost of purchasing the item from the wholesaler or manufacturer. It is “all in” in a sense because other expenses such as packaging materials, overseas shipping, and customs fee will be included in the computation.
And for this example, let's just say that a manufacturer in China sells the alarm clock per unit for only $4.00 (inclusive of other purchasing expenses). After inputting the value, the seller can now click the “Calculate” button.
After clicking the Calculate Button, the FBA calculator will display data about the product. Such data is based on the values that the seller has just inputted. The main highlight of the result includes the net profit and net margin for the item being scouted.
Similarly, the Amazon FBA revenue calculator also showcases bar graphs on the right portion of the result, giving sellers a clear visual representation of the net profit, seller proceeds, cost, and revenue for the chosen item.
How to use the FBA calculator to understand margin impact
With the help of the Amazon FBA calculator, sellers will have a clearer overview of the margin impact. Sellers can explore the revenue calculator and see how long until their business becomes profitable.
As an example, sellers may change the customer item price and check whether net profit will improve. As seen in the image above, the item price has been changed to $30.00 and as observed on the recalculated output, net profit drastically increased.
