SellerSonarFBAExperienced Amazon sellers already know their costs and understand the benefits of bringing a new product to market. What if you are new to Amazon trading? The first step is the most difficult and important one. If you calculate the costs and determine the price incorrectly, the high chances are that you will incur losses. No wonder a beginner immediately faces many questions. Is it expensive to sell on Amazon? How much are competitors spending on FBA? What are my possible earnings with the platform? If only I had an FBA fee calculator to help estimate costs and understand what price to set or the first batch of goods volume. Well, there is one! 

So, keep reading to find more about the whole process of understanding your business financials, and check out a free tool you can use to run some calculations efficiently!

What is an Amazon FBA Fees Calculator?

FBA calculator Amazon, otherwise called Amazon Revenue Calculator, is a seller tool available from Amazon that is intended to evaluate the fulfillment cost of your product. With the help of this instrument, sellers can approximately compare Amazon’s fulfillment charges with the cost of any other 3PL order fulfillment services.

However, Amazon warns sellers that the free Amazon FBA calculator should be used as a guide only since the calculation is not accurate. This option is rather used by sellers for rough evaluation of fulfillment charges per order.

If you need to make a precise calculation, you’ll need to check your Amazon Services Business Solutions Agreement. Also, the New Amazon Fulfillment option helps verify your Selling on Amazon fees and FBA fulfillment fee.
You should keep in mind, that the calculations may vary depending on the marketplace. You’ll need to use the right calculator applicable to the marketplace where you sell.

Which FBA Fees Are Included in FBA Estimator?

There are many different charges associated with the FBA program, and without a tool like the FBA Calculator, it can be tough enough to get a real sense of what FBA costs. Therefore, it’s essential to clarify which fees your FBA Calculator includes and what those costs represent to feel confident in the data you are getting from this tool.

Here is a brief description of fees included in the Amazon Tax Calculator.

Amazon Selling Fees

how to use amazon fba calculator

The Selling on Amazon charges comprises the referral fee and a variable closing fee (if applicable). The referral fee means the cost for selling your products on Amazon. It is calculated as a share of a minimum dollar amount or the sale price, whichever is greater. The percentage of sale price depends on the category, while 15% is the most common rate. When it comes to the minimum dollar amount, it is almost always $1.00. The referral fee is category-specific, and some products have higher or lower costs. 

The variable closing fee applies only to some media products such as music, books, videos, video games, DVDs, consoles, or software (BMVD products).

FBA Fees

how to use amazon fba calculator

The FBA fee is calculated based on the weight and dimensions of the item. It comprises a monthly storage fee and a fulfillment fee. The Fulfillment Fee covers labor costs for packaging and shipping supplies (labels, boxes dunnage), shipping to the client, and customer service that Amazon fulfills. Instead, the Monthly Storage Fee is calculated based on the volume of the product (in cubic feet).

When to Use the Amazon Fee Calculator

One of the most valuable times to use the FBA Calculator is researching new items to sell on the marketplace. Not only can sellers use this tool to get some sense of the potential profit margin they can expect when offering a particular product, but this tool provides a clear picture of what the FBA costs actually would be for that item on a per-unit basis. Additionally, you can use this Amazon fulfillment calculator to learn the margin impacts from lowering or raising the product cost or sale price on your goods. You can use this info when determining what type of product cost budget range you need to adhere to, decide on your minimum customer price to remain profitable, and find what kind of margin you might potentially see from a higher price. The Amazon fee estimator can be utilized when you’re considering a switch from a merchant-fulfilled system to FBA as it provides a clear side-by-side comparison of costs and margin under each model.

How to Use Fulfillment by Amazon Revenue Calculator? 

The Amazon FBA fees estimator is great for determining your FBA fees. However, you can employ it not only for expenditures but also as an Amazon profit calculator. To get the bigger picture, we have put together some simple tips on monitoring your spending and measuring actual profits.

Now that you have a sense of the types of fees the Amazon profitability calculator includes and what such fees represent, let’s dive into what these calculations look like in real life for a specific product. 

Step 1

When using the FBA Calculator, the first step is to fill in an identifier to pull up the item you’re researching (feel free to use the ASIN, ISBN, EAN, or search term).

Step 2

As soon as you pull up the product, you can begin entering values in the fields in the Amazon Fulfillment column to calculate the margin for your specific item. The first value to enter is the Item Price. You can find similar products to understand the price range and play around with this value to see the margin impact you receive from lowering or raising the price. For instance, we’ll use a sale price of $12.99.

Step 3

The following field you need to fill in is the Ship to Amazon info. If you already sell goods on Amazon, you might have a sense of the average per-unit price to ship your items to the Amazon warehouses. Of course, it will vary depending on the dimensions and weight handling of the product and the quantity you send at any given point in time). It’s another field where you can experiment with using a range of costs to find the margin impact. Otherwise, you can leave this field blank; however, if you do, be sure to expect margin impacts and additional costs from your shipping expenses. In our example, let’s use a shipping cost of $0.40 per item.

Step 4

The final info to enter in the calculator is the Cost of the Product. It’s where you will fill in your per-unit cost to buy this product from a wholesaler or manufacturer. Keep in mind this should be an “all-in” charge, including any fees for overseas shipping, customs, packaging materials, or other costs related to buying this item. We will use a value of $3.50. As soon as you input this field, click Calculate.

Results

Here the AMZ FBA calculator will show you net profit and net margin for the item, based on your input values. You’ll notice that Selling on Amazon fees has been estimated, as well as Fulfillment By Amazon (FBA) costs, displaying a Total Fulfillment Cost.

The tool produces a series of bar graphs on the right of your screen, providing a visual representation of the revenue, costs, seller proceeds, and your net profit.

How to Use the Amazon Margin Calculator to Understand Impact from Business Decisions? 

This tool provides an easy and quick method to understand the margin impact of various business decisions. For instance, say you decide to lower your customer price to become more competitive. If you wish to have a clear sense of how low you can go while staying profitable, you can promptly determine this using the calculator.

You might use this program to play around with the cost of products to find the margin impacts from lower or higher product costs.

Reasons Why Revenue Calculator On Amazon Alone Is Not Enough?

Although the Amazon FBA calculator provides specific benefits to Amazon sellers, especially the newbie ones, there are things that this internal calculator is incapable of performing. As a result, the free Amazon calculator is mainly used by experienced sellers for pre-selling guesstimation.

Below are some reasons why merchants should consider opting for the estimating power of third-party Amazon calculators. 

Tedious And Time-Consuming Process

Amazon users of the free FBA calculator can readily attest to the tedious process of the free calculator. For instance, for sellers to learn the Amazon fees for a particular product, they have to manually enter the product name, Amazon Standard Identification Number (ASIN), or even the Universal Product Code (UPC). 

No Save Function

Concerning the preceding paragraph, merchants should also think about using an external FBA calculator because of the lack of save function of the free one. 

After all the time and effort allocated for crunching FBA fees of a specific product, sellers will need to redo this process if they wish to recheck it afterward. In addition, as there is no save function, they will have to redo this process to retrieve results when dealing with technical issues, such as power outages, website crashes, or browser problems.

No Data Export Feature

Apart from this, the free FBA calculator also lacks the data export option. It simply means that whatever is calculated or displayed via a free calculator cannot be saved or downloaded as a PDF or CSV file. 

Some Amazon sellers resort to writing down particular calculations to compare them with another consequence of a specific Amazon product. However, this process would be more taxing when a seller lacks the technical knowledge, such as using keyboard shortcuts. 

Comparison Difficulty

Since split tabulation is unavailable and data cannot be downloaded, simultaneous information comparison is also impossible with the free profitability calculator on Amazon.

Some Amazon merchants use third-party Amazon FBA calculators to enjoy important features like data comparison. Such an option will ultimately result in increased productivity and sales. 

No Additional Cost Perspective

Since the FBA calculator of Amazon is primarily focused on Amazon fees, other critical expenses or costs involved in the business are not included.

Expenses such as taxes, advertising costs, marketing costs, overheads, and other hidden costs are beyond the scope of the free FBA calculator. Hence, it would help if you had a more comprehensive FBA tool. 

The ones mentioned above are some of the reasons why Amazon sellers should consider complementing the free Amazon FBA revenue calculator with third-party options. There are many apps available online that sellers can take advantage of. Some of them are even capable of cross-platform operation. 

Some Amazon seller tools provide their own free FBA calculator once you enroll in a specific program or an Amazon FBA calculator extension. Thus, making it more convenient for sellers to combine solutions and processes within just one platform. Moreover, if your time is limited, there is an additional way to fine-tune your business and improve customer service. For example, SellerSonar will help you keep the prices on a competitive level to generate profits, protect your inventory from a stockout and keep alert of any changes in the product rankings. It tracks the product listings round-the-clock and sends notifications about all the critical changes in real-time. Besides, it offers a free Amazon FBA profit calculator for your convenience.

So, register for a 90-day trial and do not miss a chance to help your business on Amazon, estimate your profits, and deal with any issue promptly.