If you are looking to start selling on Amazon, you need to figure out how to fulfill your orders. And if you are selling via Seller Central, you have two options. You can ship the goods to customers yourself, or you may benefit from the marketplace’s FBA program. FBA, which stands for Fulfillment By Amazon, lets the platform handle all of the packaging, shipping, client service, and more. Besides, it’s how you may earn that Prime Badge too.
This blog post will take a look at Amazon’s FBA seller calculator, so you can comprehend what costs are associated with the marketplace and decide whether FBA is the best option for you.
What Is Amazon FBA Calculator?
The Amazon selling calculator is a useful tool that estimates profit margin and breaks out the costs associated with offering goods with Fulfillment By Amazon. Whether you’re searching for potential goods to sell in the marketplace and need to understand their potential or want to switch from a seller-fulfilled model to FBA, learning how to use this service will come in handy.
The Amazon calculator incorporates all of the commissions associated with utilizing the Fulfillment by Amazon program. Of course, we’re are talking about expenses like the fulfillment fee, which depends on the dimensions and weight of your products. It also considers any applicable delivery, storage, order handling, and other costs.
How to Use FBA Calculator on Amazon?
1. Identify your Product
When utilizing the platform’s FBA Calculator, your first step is to fill in an identifier to bring up the item you are examining (you may use the EAN, ASIN, ISBN, or any search term).
2. Fill in the Price
After choosing a product, you may start entering data in the AMZ Fulfillment columns to define the profit margin. The first field that must be entered is the Item Price. You may experiment with various pricing plans by looking for similar goods to get a feeling for the going rate and then changing this figure to check how it influences your profit margin.
3. Enter the info in the Ship to Amazon value
It’s the next field for completion. If you are already an AMZ merchant, you may know how much it costs to dispatch a unit of stuff to one of the platform’s fulfillment centers. You may get lower or higher commissions based on the dimensions and weight of the item as well as the quantity you send at any given moment.
Feel free to play with different cost estimations to check how they impact your profit margins in this area. Otherwise, you can leave the option blank. However, in this case, you need to anticipate higher shipping costs and a decrease in the profit margin.
4. Add the product cost.
The price of the item is the last figure to fill out on the estimator. After that, you need to fill in your per-unit price to buy this product from a distributor or manufacturer. Keep in mind that this price must be an “all in” cost considering commissions for the product’s packaging, global shipping, customs, or additional associated expenditures.
5. Check the results.
Once you enter the relevant numbers, the calculator will produce the item’s margin and net profit. Besides, you will see that a Total Fulfillment Cost has been computed after Selling on AMZ fees, and FBA fees have been deducted. In addition, the calculator spits out several bar graphs giving you a graphical representation of the cost, revenue, seller proceeds, and net profit.
Utilizing this tool is a crucial step when choosing how to fulfill orders on AMZ. With its easy-to-navigate interface and complex results, you may quickly develop a well-informed decision that will help your brand in the long run.
