What is an Amazon FBA Fee calculator?
Amazon FBA Fee Calculator, Amazon Profit Calculator, and FBA Revenue Calculator are all different names of the same service offered by Amazon.
AMZ handles storage, packaging, fulfillment, and customer service on behalf of third-party sellers. But the service is not free. AMZ charges a fee for fulfilling orders, based on product weight and size. Estimating the costs you’ll incur can be a complex process. Especially if you do not understand AMZ Fees.
Wrong estimation of these fees can lead to errors in product pricing. As a result, you are likely to make losses. The best thing to do is to use an Amazon FBA fee Calculator. They are many Amazon FBA fee calculators available depending on the marketplace you use.
To calculate the AMZ fees, you have to go to the website and enter the details as asked. The fees vary according to the item’s weight, size, and also by country. But, there is one important thing to keep in mind while using these calculators. It shows results based on the potential size and weight of the product, so even a slight change can give you the wrong calculation.
Why should You Use An FBA Fee Calculator?
In other words “Why do you need to calculate your profits and costs”? Whether you are already a seller or are just about to start, doing the right research is vital. It is the only way to know if you are on the right track or not.
Sellers have to continuously stay on top of AMZ’s constantly changing fulfillment fees. You should regularly track order revenue, seller fees, production and fulfillment costs, and others.
Here’s why you should use a fee calculator:
- Product Selection: Selecting the right products for your business is crucial. You need to determine your profit potential before launching a product on AMZ. To do this, you have to take all expenses into account. They include:
- The costs of the product (samples, manufacturing, packaging, international shipping, etc.).
- Seller fees like selling plan fees, referral fees, and variable closing fees.
- AMZ fees – Fulfillment fees and Inventory storage fees.
- Shipping costs if you intend to use FBM
- Sales estimates
You can use the Calculator to estimate net profit and profit margin for product ideas. The results you get will help you determine which products to sell.
2. Deciding on a fulfillment option: Sellers can choose either the Fulfillment by Merchant (FBM) model or the Fulfillment by Amazon (FBA) model.
The FBM model requires you to store your inventory yourself. You are also responsible for packing and shipping the orders, providing customer service, and handling refunds and returns. Under the FBA model, your inventory is stored at AMZ’s fulfillment centers. They will pack and ships orders to customers on your behalf. Additionally, they handle all returns and customer service.
FBA offers you the following benefits:
- Prompt delivery at lower costs
- You become automatically eligible for Prime shipping
- Better shot at winning the Buy Box
- Access to excellent customer service
Despite the many benefits, this fulfillment option may not be the right choice for your business. For instance, you incur more expenses on large, heavyweight items.
This calculator lets you compare the costs of using FBM versus FBA. Your results will help you choose the best option for your business.
3. Price Adjustment: The calculator makes it easy for you to estimate your expenses and profit before launching a product. This will help you set competitive prices and avoid losses.
You may also need to review your prices after a while if there is a change in AMZ fees and other costs. Using the calculator will make it easy for you to do this.
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What do the FBA calculators take into account?
Sellers are charged for order handling, picking, and packing. Outbound shipping, weight handling, 30-day storage, inbound shipping, and prep service costs are included too.
Considering all those fees, you might think fulfillment by Merchant or (FBA) might be a good option for you. But, even if through FBM you are not paying fees like storage fees, handling fees but you might end up paying more.
What are the AMZ fees?
These fees are divided into three parts:
- Referral Fee- AMZ charges a referral fee on every sale. The fee varies from 8-45% (depending on the product category you are selling). Some categories have higher fees and some have lower referral fees. For example, Jewellery and Automotive only have a 20% referral fee.
- Closing Fee-This is a per-unit fee based on the price of the item. It is a fixed fee and it ranges from $0.45 to $1.35 depending on the product. Following are the basic closing fee for some products:
- Books- $1.35
- DVDs- $1.35
- Music- $1.35
- Software & Computer/Video Games- $1.35
- Video- $1.35
- Video Game Consoles- $1.35
- Fulfillment Fee- As previously described, fulfillment fees are based on the weight and size of the product as well as the shipping distance. To confirm which category a product belongs to, determine its dimensions and weight accurately.
These fees can change based on various factors like seasonality, long-term storage fees, etc.
Advantages of FBA calculator
Following are some main advantages of the FBA calculator:
- It will give you the most accurate data on commission and fees to help you choose the best product to sell.
- You can also use the data to decide which option is good for you: FBM or FBA.
- You can calculate your FBA fees, profit percentage for different products.
How to use the free Amazon FBA fee calculator?
- Go to the website by clicking here, or you can search on google for your country.
- Enter your product’s name or Product ASIN or product’s URL from AMZ. In case you don’t know what a product ASIN is – it is a 10-digit unique identification number associated with each product.
- Enter all the fields that are asked correctly.
It will give you an estimate of the product’s profit and FBA fees. The Amazon FBA fee calculator is an additional free tool that will give you accurate fees and profits, which will help you to plan your future steps.
Here’s a list of the FBA calculators for different marketplaces.
- US Marketplace
- UK Marketplace
- Canada Marketplace
- India Marketplace
- Germany Marketplace
- Mexico Marketplace
- Italy Marketplace
- France Marketplace
- Spain Marketplace
When to use the Amazon FBA fee calculator?
The best time to use the Amazon FBA fee calculator is when you are still searching for your profitable product. When you find a good product you can use the calculator to estimate the net profit margin. This tool will give you a very accurate estimate if you fill in the details correctly.
Even if you are already a seller, you should still use the tool regularly as FBA fees are constantly changing. Another situation when you can use the tool is when you are lowering and raising the product’s price. It will help you understand the margin impacts.
The tool will help you to determine what you should fix the cost of your product, to remain profitable. Lastly, you can use this tool to decide which is the best path for your business.
What are the hidden fees to sell on Amazon?
An Amazon FBA fee calculator will tell you the fees only that are associated with AMZ. But there are some costs that the fee calculator does not show. They include:
- Shipping Costs
- Long term storage fees
- Getting UPSC codes
- Cost of an advertisement on Amazon
- Warehouse cost
There can be more or less hidden costs that you will not see on the calculator, it depends on how you choose to do the process.
Tips to reduce FBA fees
Here are some ways through which you can reduce AMZ fees and increase profitability:
1. Reducing Amazon Shipping Fees
You can control shipping methods and also control the cost. Here are some ways you can reduce Amazon shipping fees:
- You can ship your products using the US post office Priority Mail option if you have lightweight products.
- Always look out for free packing materials wherever you can get them. You can talk to local lenders to get used packing boxes vendors to pack products for products.
- If you are shipping items regularly, you can contact shipping companies like FedEx and ask them at what volume they can provide discounts.
- Shipping companies like FedEx and UPS charge based on volume instead of weight. So, by sending two smaller boxes instead of one large, you can save more.
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2. Reducing Amazon Referral Fees
You can reduce Amazon referral fees only by choosing the perfect items. Some products have higher while some have lower referral fees. You can check here for some products:
- Backpacks- 3%
- Books- 13%
- Jewelry- 20%
- Beauty Products- 6%
- Baby Products- 6%
Choosing profitable products is a crucial part of every business. Using an Amazon FBA fee calculator can help you choose the right products. Apart from this, you can also take all expenses into account. This will help you avoid losses.