Accurately calculating the fees you will pay is essential to running any type of enterprise. Firstly, it helps you know whether the product you are about to invest in will make profits. Secondly, it helps ensure that you're not losing money after the product's launch due to avoidable miscalculations.
As an Amazon seller, there is one tool that can assist you in doing these two things: FBA calculator.
The Amazon FBA calculator is a tool that allows sellers on Amazon to figure out if using Fulfillment by Amazon (FBA) or their own fulfillment method is profitable. It takes into account two fees: the cost of order fulfillment by Amazon and the cost of storing the products at Amazon's fulfillment centers every month.
These two are based on the weight and dimension of the product. In most cases, after the Seller uses the Amazon FBA revenue calculator, they usually always find out that using the Amazon FBA is much cheaper than going at it alone.
As mentioned earlier, the FBA calculator for Amazon assists sellers in two major ways:
Amazon is a huge marketplace with millions of businesses selling millions of products. There is stiff competition, meaning businesses that find a profitable product with less competition are more likely to survive.
By using an FBA calculator for Amazon, a seller can see if a product will make them a profit if they choose to use FBA. They can compare the FBA fees with FBM (Fulfillment By Merchant) fees as well, helping them to further choose which fulfillment opportunity is better for them.
Amazon FBA fees aren’t static, and they may go up so high that it requires you to choose whether to increase the product's price or abandon the market. Either way, this will make sure that you aren’t losing money. Besides that, this can assist you in adjusting your prices to make sure that you can keep customers happy through discounts and sales while still remaining profitable.
The biggest disadvantage of using an FBA calculator is that you can’t rely on its results 100%. Although the calculators try to be as accurate as possible, the figures they give you have a margin of error. This means they should best be used as a guide instead of something you must absolutely abide by.
If you are looking for an FBA profit calculator, there are quite a number of them. Amazon even has its very own FBA calculator, which you can use for free . But there are a number of free alternatives that may be better for you.
Here are the top three:
On the Jungle Scout website, you will find their free FBA calculator . Once you enter your name and email address, you will be sent a link to access the calculator. It is a Google Sheet where you enter information, such as front costs, fixed costs and variable costs, and the calculator will give you your true profits.
AMZScout also has a free FBA calculator on its website that you can use. However, we can all admit that it can get tiresome to constantly switch between the Amazon page for the product you are examining and the website where the calculator resides. To make it more convenient for you, AMZScout has provided an Amazon FBA calculator extension.
Viral Launch has one of the best free FBA calculators one can use. You just have to go to the website and enter the product URL or ASIN, and that’s it. You can even compare up to three products to see which ones will be more profitable for you on Amazon FBA.
An FBA calculator is an invaluable tool for any Amazon seller who is thinking of joining the FBA program to make the most profits. While they are not 100% accurate, they eliminate a lot of guesswork. And when you are in a hyper-competitive selling environment like Amazon, you need all the information you can get.