Here is an essential basic guide about the things you should know about Amazon FBA Calculator.
Are you an Amazon seller who’s still thinking of using an alternate fulfillment method or pursuing the Fulfillment by Amazon (FBA)? If you’ve eventually settled with the latter option, consider the use of an Amazon FBA Calculator. It’s a helpful tool that you can use to compute for the fees associated with FBA or compare FBA to Fulfillment by Merchant (FBM).
Do note also that FBA Calculators vary across countries. Each of the calculators will consider the fee differences in these countries as well as the individual currencies. Policies and institutional structures within these countries will also impact these differences, so make sure you thoroughly research them.
- US FBA Calculator
- Canada FBA Calculator
- France FBA Calculator
- UK FBA Calculator
- Spain FBA Calculator
- India FBA Calculator
- Germany FBA Calculator
- Mexico FBA Calculator
- Italy FBA Calculator
Considerations of FBA Calculators
Every Amazon seller should consider the following fees when deciding to fulfill items via Amazon FBA:
- Handling of orders
- Picking and Packing
- Outbound Shipping
- Handling of weight
- 30-day storage
- Inbound Shipping
- Prep Service
But here is the thing. It would be more expensive to fulfill the items themselves. That’s because other fees could be higher even though the seller does not have to pay for additional components (like weight handling) when fulfilling orders themselves. These extra fees could be high enough that it’s more viable to transition to an FBA method. That could save a lot of bucks, especially in the long run.
For every item that you send via FBA to stock in an Amazon Fulfillment Center, you can determine precisely how much the platform will charge you using the Amazon FBA Fee Calculator. You’ll get a snapshot of a particular item's associated FBA fees when you input the item’s price and one ASIN. Since you will need to consider the delivery costs of your listing, you fulfill it and use the FBA revenue calculator tool.
Sellers can also identify real-time cost comparisons between fulfillment via FBA and your personalized fulfillment because of one of the FBA Calculator’s unique features. That is to serve as an extra tool at your disposal.
But take note of the following.
Amazon itself posted notifications reminding sellers that its FBA Fee Calculator does not produce 100% accurate results. That means sellers should only use it as a guide. Do note that the rates quoted in the calculator may not reflect the same as the actual end payment if the seller does decide to fulfill by Amazon.
When Should You Apply the FBA Calculator?
Looking for new and promising products to sell is the stage where an Amazon FBA Fee Calculator is most especially helpful. With it, you can determine the net margin and net profit that your business can generate when selling products on the marketplace via FBA. It also gives sellers a ballpark FBA fee estimate for every product’s unit.
When planning to increase or decrease the product cost or sale price of an item, an FBA Fee Calculator can provide details that would help you understand the margin impacts. The calculator also includes data that allows you to identify the minimum customer price to ensure business’ profitability or determine product cost budget range that you need to adhere to.
An Amazon FBA Calculator also makes a great deal when planning to transition from SFP or FBM to FBA for some parts or all your business components.
What FBA Fees does the Calculator Take into Account?
The variable closing fee and the referral fee are the main two parts of the Amazon seller fee. The referral fee refers to the expense incurred when you sell your products on the platform. Regardless of which is greater, the fee is computed as a percentage of the minimum dollar account or the sale price. There is also a variation on the percentage of the sale price depending on the category. The said percentage typically ranges from 8% to 15%, while $1 is the minimum dollar amount.
Do take into account that some categories have lower or higher fees, especially that the referral fee is category-specific. But the variable closing fee merely affects media listings such as software, video games, music, DVDs, books, and consoles. That means Amazon will only charge individual seller fees for those selling less than 40 products monthly. In total, the variable and referral closing fees amount to $0.99 per item.
The FBA Fee Calculator Tool bases its computation of the Fulfillment by Amazon fee on the product’s weight and dimension. A monthly storage fee and a fulfillment fee are the two main compositions of the said fee.
The storage fee per month is derived from the computation based on the product’s volume that is measured by cubic feet. On the other hand, the fulfillment fee includes labor costs for packing and picking, packaging supplies, customer service, and shipping to the customer.
Other FBA fees are not considered in the calculator’s yield because these only apply in certain situations. Among these are item removal order fees, returns fees, and long-term storage fees. Again, these fees don’t apply in most cases, but it’s always a good idea to set an extra amount if something happens, and you would have to pay for some of these fees.
Is Using FBA Cost-Efficient?
There are different elements to consider when deciding whether or not to use the FBA method. Don’t focus only on the cost. That’s why it’s imperative that the seller decide on the best means to fulfill their products. Take note. There are some cases wherein sellers who are fulfilling themselves are earning much more than those who sell via FBA. But that’s a relative.
So those are just some of the essential things you should know about using an Amazon FBA. There are advantages and disadvantages linked to it, so consider everything and assess them thoroughly before deciding on the type of fulfillment method to use.
If you’ve settled for the FBA, then you might as well use an Amazon FBA Calculator. It may not yield perfect results, but its benefits far outweigh its downsides.
