Amazon FBA Revenue Calculator
Amazon has a wide array of free tools to help ecommerce businesses boost revenue and grow their brand. One of the most important is the Amazon FBA revenue calculator. It’s a preview tool that lets you compare revenue estimates for your products both on a per unit basis and on a total sales volume basis. You can also view revenue based on the fulfillment channel used.
In addition, it explains which fees apply to each option to give you an idea of how much you can expect to make in sales per month, quarter, or year. Essentially, the FBA calculator gives you a better idea of what your true profits will be after subtracting the fees required to be an Amazon FBA seller. Becoming familiar with this tool will help guide the products you offer, pricing models, and other factors that go into building and scaling your online store.
How to Use the FBA Calculator
Using the Amazon FBA revenue calculator involves five steps:
- Select the country to identify the rate card to use to estimate fees.
- Search for products by keyword, ASIN, or product name. If you’re already logged into Amazon FBA Seller Center, simply use the SKUs associated with your product listings.
- Enter pricing information for each fulfillment option. Note: For Amazon FBA orders, shipping is already included, so the amount reflects zero and won’t affect the FBA fulfillment fee.
- Enter fulfillment cost estimates for each Amazon fulfilment option.
- Click calculate to see Amazon fee estimates based on the data entered.
Fees Included in the Revenue Calculator
Amazon FBA fees that will be calculated in the FBA revenue calculator are:
- Amazon referral fee
- FBA fulfillment fee
- Monthly storage fee based on the country selected
- Variable closing fees
Please note, the FBA revenue calculator does not include:
- Monthly subscription fees
- Long-term storage fees
- Per Amazon product fee
- Removal order fees
- Return processing fees
- Unplanned service fees
- FBA inventory storage overage fees
- Refund administration fees
- Rental book service fees
- High volume listing fees
Calculating fulfillment cost estimates for your products using this tool is important as your store grows and as Amazon fees change. It helps you determine the item price and if the costs make sense for your profit goals. Based on the estimates you receive, you can make strategic changes to your store. Ensure you’re selling products that will generate the most revenue and are worth the time, effort, and money spent.
Understanding Amazon FBA Costs
When getting started with Amazon FBA, there are different selling plans, referral fees, fulfillment fees, and other costs to consider. First, choosing the right plan is dependent on the type and volume of products you plan to sell. For those just starting out, the Individual plan costs $0.99 per unit sold if selling fewer than 40 units a month. Whereas, the Professional plan costs $39.99 per month regardless of the number of units sold.
Additionally, there is an Amazon referral fee between 8% and 15% assigned to each item sold, depending on the category it falls into. For example, full-size appliances and consumer electronics have an 8% referral fee, while home and garden, and kitchen products have a 15% referral fee. Also, there are storage costs, advertising fees, and other FBA costs to consider as you factor in the true profitability of your company.
The FBA revenue calculator is a useful tool at every stage of your company’s growth. The products you start at the beginning may not be what you continue to sell as you scale. For example, a product with a higher referral fee that doesn’t sell as well may be a good one to discontinue. That’s because the cost of long-term storage fees can add up and make it more costly to keep the inventory in stock versus no longer selling the product.
Using the FBA Revenue Calculator to Grow Your Brand
Laying a strong foundation for your brand is built on selling products consumers love. This takes extensive product research, understanding consumer trends, and ensuring you can have competitive pricing. Further, ensuring the costs you’re putting into your Amazon business aren’t outweighing the profits is vital. Make sure you know your Amazon FBA conversion rate when making growth decisions. Using Amazon tools, such as the Amazon calculator, provides a clearer picture of the fees for each product and the profitability you can expect.
When ecommerce brands find their sweet spot and can grow their businesses into consistent annual revenue upwards of $200K, it opens the doors for new opportunities. Based on the valuation of your brand, your company may be eligible for sale. At Forum Brands, we offer lucrative exit options for passionate brands that are ready to cash out years of profits in one day.
We look for brands that have built strong businesses with a loyal consumer following, with most of the profits (70% or more) stemming from Amazon FBA. Set yourself up for success by using the tools available. They break down the details of your business so you can make strategic moves and secure a profitable future.
Sources:
https://sellercentral.amazon.com/gp/help/external/WYBC38TZGCUNRKW
