FBA Calculator - A Detailed Guide
Are you thinking of earning a fortune from home? A good option can be selling something valuable on Amazon. However, it is a bit complex process but if done right, a handsome amount could be earned from it just like several other sellers of this platform from around the globe are earning it.
Introducing a product on a platform like Amazon involves a little more than just finding the ideal stuff for the audience and listing it perfectly on the site. When you put something up for sale on the huge online retailer with thousands of different items and gazillions of buyers, one should think it through.
Finding a safe and secure location to store goods, procedures to pack the stuff safely and delivering everything timely to purchasers are some of the key factors to consider. That is where one must look for various fulfillment methods and precisely determine their charges.
Since innumerable people are now opting for the service offered by Amazon for the fulfillment, here, we will discuss everything related to it in detail along with all the conveniences it brings to the users and the ideal tools for evaluating the cost linked with it.
The Basis of FBA
It is a form of fulfillment process for retailers. Here, the actual question is what is the real purpose of it and whether is it beneficial to those who are introducing an item on Amazon
It can be considered as a service or program that is rendered by Amazon to its vendors through which goods can be sent to Amazon storehouse where not only they will store them but are in charge of their protection as well. This means if your good gets damaged while being stored in the center of Amazon, you will lose anything and will receive the retail price of that good.
Wait, there is more! Whenever a consumer places a request to buy your goods, this program will automatically take care of the packaging and that too safely and will deliver it to the shoppers. What’s even better, customer support including the returns is also administered by Amazon
Here, it is necessary to inform that all of this comes with a cost that you must factor in while assessing the budget. Fba profit calculator is now the popular choice of many people for finding out all the costs.
Benefits of Utilizing This Program
It is not rocket science that should you decide to utilize this service, it will perform all the difficult tasks of packaging, sending the items to consumers, and dealing with customers. However, this medium also brings with it several added advantages for users. To begin with, it aids you in gaining increased buyers because if your goods are listed under this program, buyers will be able to receive their package in no more than 2 days through prime shipping which is free of any cost and this attracts a lot of audiences.
Secondly, the possibility of obtaining the order through the Buy Box increases greatly. Besides, shoppers have added trust in your goods if it is delivered through Amazon because they know it is their responsibility.
In addition, through this process, the delivery charges are usually low if you compare them with the charges one has to bear when they operate individually.
How it Works
Prior to sending your goods to the storehouse, the seller account must be set up. Once this is done, info on the sort of item that is to be sold must be provided. You will then be informed about the location where the units are to be stored.
Next, when they receive it, they will store them in their center safely in order to prevent them from getting damaged and if such an event takes place, a full refund will be given to the owner. When a buyer places an order for your product, it is the duty of Amazon to control the transaction and update the product availability.
The item will then be packed in the Amazon center for goods storage and will be delivered to the customer.
This service doesn’t stop here,when the package is shipped to the customer successfully Amazon will approach the shopper to get his/her feedback about the parcel they received. Furthermore, if the buyer claims for exchange or refund, it will also be supervised by Amazon.
However, as a seller, you must keep yourself updated about your stock levels so that you can send more items on time when the level is low. Moreover, the publicity and advertisement of the goods are also your responsibility.
The Purpose of Calculator for Fulfillment
It is an excellent tool for Amazon sellers who are using fulfillment services offered by Amazon as it lets them figure out all the charges related to it according to the type, weight, height, etc. of their goods. It also lets them evaluate whether it is the most economical and best option for them or should they look for another method such as self-fulfillment.
This tool calculates the cost of handling, storing and packing the items. It will also tell you the shipping costs.
Is this Tool Reliable?
Since you are now aware of what this software is, it might occur to you if it is worth utilizing. Well, it is without a doubt very useful to use a calculator before deciding which fulfillment method is the best. Not only does it compile all the charges of sending goods to shoppers but enables the users to conduct a comparison of multiple methods for fulfillment
It sorts out the charges one has to pay each month for storing their units as well as the other charges linked to fulfillment. Don't forget, the sum includes charges for good's packaging, customer service, and delivery expenses while the total space occupied by the goods make up the monthly fees.
The estimated profit margins and cash that could be earned through a specific item after paying for all the expenditures can also be analyzed through this software. It's pretty easy to decide the retail price of your goods when you are aware of all the expenses including shipping.
Different calculators like estimators for Germany and UK, etc. are available for determining the expenses of selling in different parts of the world through Amazon. The reason behind this is the different shipping charges for sending something in different countries.
Best Tools for Estimating the Charges of Fulfillment
While there are numerous software available out there for determining the costs, here we have listed some of the best ones based on the features they offer and the accuracy of their results.
- Jungle Scout
- Viral Launch
- IO Scout
- AMZ Scout
- Seller App
You may have heard of JungleScout as the best medium for discovering the ideal products to sell on Amazon but it also offers great software for calculating profits and the expenses of packaging and delivery etc. of your goods and that too for free. Besides, the tool is pretty simple and is quite easy to understand.
The functionality of the estimator is not limited to calculating the total costs and charges but it tells the money you can expect to earn on each item as well.
This tool will first ask you to submit some basic info related to your goods such as the total number of units, the amount of units you have sold and the retail price you have mentioned on Amazon, etc.
Next, you have to enter costs such as photography cost, listing expenses, the amount you paid to the manufacturers of the product, etc. The tool will also ask for the amount you have spent in marketing and promotion of the item.
It will then show you the net margins for different prices and the Gross margin calculations which include total revenue based on the number of items you sold, fees of shipping, photography costs, etc.
This amazon fba fees calculator is definitely among the highly reliable tools to determine the fee and profits.
Viral Launch, another reputable company offering useful tools to Amazon sellers including a tool for calculating profits and fulfillment fees. Viral Launch’s tool gives an estimate of the profit that one can earn on a specific item by factoring in all the services cost and other expenses such as manufacturing etc. This is also a great way to discover a decent price for your item. This tool also calculates the expenses of product sourcing.
Expenses can be calculated through this excellent tool by just entering the ASIN or URL of the item you are interested in. After pressing the button for results you can analyze the profit that can be made on each unit along with the fee amazon will charge you and referral fee both of which are based on the category of the goods and its dimensions such as size, width, etc.
It will display the ASIN and the selling price of the product as well. What’s more, you can also see the investment cost, the monthly costs, monthly estimated profit and total profit based on the current inventory.
You can update the number of items you ordered, the items sold per month and the retail price through the edit advanced setting option. The option to enter manufacturing cost, photography cost and design costs, etc. is also available.
To make the results more accurate, the tool also has a section of product promotions where you can enter the number of items you are planning to sell on discount and the percentage of the discount.
Another type of Scout worth mentioning at this stage is IO Scout. Offering equal great functionality to the other tools available in terms of functionality, yet budget-friendly, IO Scout can offer your Amazon business a lot in terms of elevating success. And the good thing that IO Scout FBA Revenue Calculator is free for all Amazon sellers.
This amz fba calculator comes as an extension for chrome browser which as the name suggests can be used directly on amazon when you are browsing on chrome. This free extension has a tool for evaluating the profit you can expect to get on the item you are thinking about selling.
This app also lets you determine the sales and revenues that can be generated every month and the profit margins. Furthermore, it helps you with perfectly optimizing the listing of the item. You can also determine the product competition and demand.
If you wish to know the expenses through the AMZ Scout tool, you have to put in some details such as the price you are going to sell it for on Amazon, and any additional costs including marketing, design, and photography, etc. Through these stats, the tool determines the estimated profits and revenues you are going to earn.
Another important variable that this tool calculates is the ROI (Return on Investment) through which you can determine after how much time your product will return the cost of investment so that you can actually start earning the profit. Not to mention, it shows the total fee and expected costs per month as well.
Seller app with its user-friendly interface is very simple to use and a free tool for calculating the Amazon’s fulfillment service fee and profits. This app comes as both web app and extension for chrome browser.
The extension for Chrome allows you to learn about the fees of fulfillment and the expected profits directly while browsing the product on Amazon through just one click. This app calculates very accurate results as it uses the data from Amazon’s official tool for calculating revenue.
A great thing about this extension is that it works on different amazon sites such as Amazon USA, UK, Canada, etc.
To use the web app, you have to go to the seller app’s website and enter the product’s URL in the search engine and voila, you can see all stats including product dimensions, weight, etc. The app tells the costs of amazon and merchant fulfillment methods side by side to make it easy for you to decide which method is right for you.
Users can find out the expenditures of fulfillment and the income that can be made. If you click the calculate profit button, you can also see the net profit and net margin percentage on both the methods.
Seller App also helps you with optimizing your item listing, running a successful PPC campaign and analyze the keywords to discover the most relevant ones. It is surely a great tool for any Amazon Seller.
Salecalc is another great tool for calculating the accurate fees associated with being an FBA seller and the expected profits. You can use this tool on Salecalc official website.
To get the results, you first have to enter the category of your product. For example, if you are selling a laptop, you will choose electronics as your product type. Next, you must enter the sale price, weight of the item and method of shipping based on which you will see a shipping price.
The tool will also ask you to put in the manufacturing cost and the income you want from it. You can see the results side by side as you enter the details. In the results section, you can learn about the fees you have to pay for the fulfillment, referral fee, etc.
Not to mention, net profit, return and margin are also displayed in the results section. An option to see bar graphs of cost, net profit and proceeds are also available in the breakdown tab. Salecalc doesn’t require much of a learning and can be used by anyone who wishes to sell on Amazon.
This app brings an outstanding opportunity for sellers to figure out the charges of using Amazon’s service of fulfillment and if it is profitable or not. This tool is ideal for new sellers or even experienced sellers who want to sell a new product. The ShipBob tool can be used on their official website easily and without any cost.
The ShipBob pricing model is not only simple but is easy to understand. To calculate your profits, go to their website and enter the monthly no. of orders, product basic dimensions which include length, width and height, and the sale price of each item.
You also need to fill the average units per order, item’s average weight and manufacturing cost per item columns. Once you are done with it, hit the calculate my profits button to get the results.
The monthly breakdown section is further divided into three sections named revenue, costs, and profit. You can see the net revenue including the seller fees in the first section while the costs section displays fulfillment and storage cost along with manufacturing cost. Lastly, the profit margin percentage and total profit can be seen in the profit section.
Calculator by Amazon
We mentioned above some reliable calculators for evaluating revenues and expenses offered by different companies. Did you know Amazon itself also offers a tool for determining the revenue? This tool is a great way to learn about the costs of getting shipping, storing and packing services from Amazon and the estimated revenues.
However, on their website, Amazon states there is no guarantee of the results accuracy, information or calculations provided by this estimator for revenue and you must use other analysis techniques to verify the. It also says that you should refer Agreement of services for the latest prices and charges. The latest Amazon Fulfillment tab shows the current selling fees.
How does this tool Work?
Just like other tools for evaluating fulfillment fees, this software for discovering expected revenue also has a user-friendly interface. It can be accessed on seller central where the uses can either log in through their account or use it as a guest. The former allows users to utilize this platform as many times as they require.
To first step to get the required info is to put in the title or name of your item. ASIN or ISBN can also be used instead. On the basis of this info, Amazon will find the item in their database. The price of the item must be entered before hitting the magic button and voila the details will be displayed which include a separate analysis of two different processes of fulfillment that makes the comparison easy.
It will show you fees of selling the largest retail, fees of shipping and proceeds, etc. Based on the stats, it shows the net profit and net margin that can be generated through both methods. You can also enter the units sold to get more reliable results.
Bar graphs of revenue, cost, proceed and net profit are also displayed. Moreover, users have the option to switch the country and they can also draw a comparison of the current and new fulfillment costs.
Fulfillment is an amazing service for the sellers through which Amazon takes all the responsibility of storing, taking care, packing and shipping of the product. They also interact with customers on your behalf to get their feedback.
Not to mention, it helps the seller reach more buyers by making their product available for Amazon prime shipment. What more can you ask for? You must, however, track the availability of your stock and send additional units to the warehouse when the inventory level is low.
Since all these services are not available for free using an Amazon fee calculator is a great idea to determine whether it is economical to use FBA or should you go for another fulfillment process.
There are many free such tools available by different companies that offer different features. Even Amazon itself has a fba revenue calculator that is available on seller central. Which calculator you should use depend on what you want to know. Some tools show detailed statistics including the estimated profit margins while others calculate the basic FBA fees and compare the FBA and FBM costs.
If you utilize the calculator properly and analyze the results to select the most profitable method and product price, you can definitely become a successful seller
How to choose the ideal software for determining the charges of fulfillment?
Various companies have crafted a variety of calculators that have great features and provide accurate results. The kind of info business owners actually want greatly influence what calculator should they choose. For instance, if someone has made the decision of utilizing the service rendered by Amazon then there is no purpose for him/her to use an estimator that has the ability to compare charges of several methods
What are the factors that make up this fee?
Various costs such as referral fees, expenses of the packaging of the units, support service expenses, and shipping fees make up the total expenses of delivering goods to consumers. It also includes charges that are to be paid on a monthly basis for storing the goods. When software is used for determining the total expense, it automatically takes into account all the prices that are mainly calculated on the basis of the unit’s dimensions such as weight, width etc. The part of the world where you want to deliver the goods also affects the amount of charges.
How to figure out the cost of introducing something on Amazon?
Charges of selling including shipping it to the consumer on this platform varies on the basis to the dimensions like the weight of the goods. Any of the available software can be used to get an estimate of these costs.