The Fulfilment By Amazon (FBA) service enables Amazon sellers to send their product catalogue to an Amazon fulfilment centre, and instead of handling the orders, the packing, the shipping, the returns, and the customer service element of the process - hands this over to FBA (at a cost!). We will get into that shortly. First, let's see if it's going to be a valuable ROI for you to consider FBA for your online selling business on Amazon.
The FBA solution provides the means to reach more customers. Some key benefits of the Amazon FBA service include:
The Amazon FBA Calculators enable you, the seller, to make smart business choices about your product mix, and product pricing strategy. Used correctly, the FBA Calculators can make a substantial difference to your business profits. Music to your ears!
If you're pondering the decision whether to go ahead with the Amazon FBA service, you're going to want to know how much this service is going to cost you. And rightly so. For anyone to sell successfully on Amazon, you need to know your true profits. Fun fact - this is something apparently 37.6% of initial Amazon sellers don't know!
Calculating profitability is one of the most vital parts of selling on Amazon.
To calculate the FBA fee for your products, there are many avenues to explore.
The Amazon FBA Calculator is probably the best place for us to start, and very useful for anyone selling (or considering selling) products on Amazon.
By using the online Amazon FBA Profit Calculator, you as the seller can make an informed decision. It enables the seller to consider the benefits of FBA to FBM (Fulfilment By Merchant), or work out instead the fees involved with FBA.
Amazon FBA fees incorporate fees for all of the different elements of the fulfilment service. This includes:
· Order Receiving
· Picking and Packing
· Outbound Shipping
· Weight Handling
· 30-day Product Storage
· Inbound Shipping
In your Amazon Marketplace, go to the FBA calculator in your marketplace, search for a similar item:
Once you are in the calculator, focus your attention on the right hand column and enter your item cost, the cost to ship it to Amazon and the total cost of the product per unit:
A fter you've entered this information - hit calculate, and the calculator will give you a breakdown of your potential Amazon Fulfilment costs, including selling fees and FBA fees.
FBA fees are the costs that are involved with selling on Amazon. Typically, it’s 15% of the product’s price, and an additional $3.00 to handle and deliver the product. Using Amazon’s service comes with a small cost, but there are major benefits included with selling with Amazon, so you may result in deciding it's worth the cost!
Yes, there are other avenues to explore, and it may be in your best interests to do so, as none of them are 100% accurate. You can pick online FBA Calculator for Amazon , and work out an average.
1. Jungle Scout
2. AMZ Scout
3. IO Scout
4. Seller App
5. Viral Launch
After exploring the aforementioned FBA Calculators, we now have several ways to help you make informed decisions about pricing and products, and the overall potential profitability of your business selling products on Amazon online.
But which is the best FBA Calculator? The best FBA calculator very much depends on your specific needs.
Here are a few key factors to consider when choosing the best FBA Calculator for your business requirements:
Before we finish up, as a concluding point, in addition to the fees covered by the FBA calculators above, there are a whole lot of other costs that might add to your overall fees during the course of using the FBA service, including (but not limited to)
· Long term storage fees (for goods stored for 6 months or longer)
· Product removal and disposal
· Packing costs including labels, tape, boxes, etc
Be aware that these costs will add up, and must be considered, as they can eat into your profits, without you being aware of them.
This way, you have a nice clear picture of your financials, and not have any nasty surprises a bit further down the line.
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