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Amazon FBA Calculator

Is Fulfillment By Amazon (FBA) Worth It?

The Amazon FBA Calculator is a useful tool for any seller who is deciding whether to use Fulfillment By Amazon (FBA) or pursue an alternate fulfillment method. With the calculator, a seller has the ability to either compare compare FBA to FBM (Fulfillment By Merchant) or to simply calculate the fees involved with FBA.

FBA Calculators for Different Countries

There are different calculators available for Amazon sellers who sell in various countries. Each of these calculators will take into account the individual currencies, as well as any fee differences in those countries.

What Do the FBA Calculators Take Into Account?

When deciding whether to fulfill items through Amazon, a seller needs to take into account that they will be charged for the following fees:

  • Order handling
  • Picking and packing
  • Outbound shipping
  • Weight handling
  • 30-day storage
  • Inbound shipping
  • Prep service

However, it could be that fulfilling the items themselves would actually be more costly. Even though a seller might not need to pay for some elements (e.g. weight handling) when fulfilling orders themselves, it could be that other fees are higher — high enough to make the switch to FBA financially worthwhile.

How to Use the FBA Calculator

This video will show you how to take advantage of Amazon’s FBA Calculator to determine profit.

As you can see, the Amazon FBA Fee Calculator helps sellers find out exactly how much Amazon intends to charge you for each item that you send to stock in an Amazon fulfillment center via FBA.

You can input one ASIN and the item’s price and you will get a snapshot of the FBA fees associated with that item. If you fulfill your items via FBM, you can still use the FBA revenue calculator tool, but you will need to input your own delivery costs.

The FBA Calculator can function as an additional tool in your tool belt, allowing you to discover real-time cost comparisons between your own fulfillment and Fulfillment via FBA.

Amazon’s Disclaimer

Amazon says that the FBA Fee Calculator should only be used as a guide in evaluating FBA, and that it may not be 100% accurate. Therefore, if a seller does decide to fulfill by Amazon, note that the fees quoted in the calculator may not be exactly the same as the actual end payment.

When to Use the Amazon FBA Fee Calculator

One of the most helpful times to use the FBA Calculator is when you are scouting and researching new products to sell. The tool will give you a ballpark net profit and net margin that you can expect when starting to sell that item on the marketplace via FBA and will also provide FBA fee estimates per unit of that specific item.

Additionally, it can help you understand the margin impacts if you are planning to raise or lower the sale price or product cost of an item. You can also use the data included in the calculator to determine the product cost budget range that you need to stick to or determine your minimum customer price in order to remain profitable. Lastly, you can use the Amazon FBA Calculator if you are planning to switch from FBM or SFP to FBA for all or parts of your business.

Which FBA Fees Are Included in the Amazon FBA Calculator?

The Amazon seller fee is made up of two parts, the referral fee and variable closing fee (where applicable). The referral fee is basically the charge for selling your item on Amazon. It is calculated as a percentage of the sale price or a minimum dollar amount, whichever is greater. The percentage of sale price varies by category and is typically 8-15%. The minimum dollar amount is almost always $1.00.

The referral fee is category-specific, and certain categories have higher or lower fees. The variable closing fee only applies to media products such as books, music, videos, DVDs, video games, consoles, and software. Amazon Individual seller fees are fees for sellers that plan on selling fewer than 40 items per month. They have a $0.99 per-item fee, as well as referral and variable closing fees.

In the calculator tool, the Fulfillment by Amazon fee is calculated based on the item’s weight and dimension. The fee includes two parts, a fulfillment fee and a monthly storage fee. The fulfillment fee covers the costs of labor for picking and packing, shipping, packaging supplies, shipping to the customer, and customer service. The monthly storage fee is calculated based on the volume of the product in cubic feet. There are other FBA fees that only apply in specific circumstances and are not included in the calculator’s results — long-term storage fees, returns fees, and item removal order fees.

Is FBA Worth It?

Deciding whether or not to use FBA depends on multiple factors, not just cost. Therefore, every merchant will need to decide for themselves how to best fulfill their items. We recommend checking out this blog post to learn whether FBA is right for you.

How Can Feedvisor Help You Optimize Your FBA Strategy?

FBA allows sellers to focus on business scalability and competitiveness. To get the most out of FBA, sellers need to develop a solid strategy that is compatible with winning the Buy Box. Feedvisor’s data-driven Amazon repricer provides the granular insights sellers need to optimize their FBA strategy and win the Buy Box.

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