Amazon’s Fulfillment by Amazon (FBA) is a service that allows businesses to sell their products on the Amazon marketplace. Picking, packaging, & shipping are even included in the Amazon programme, which Amazon manages rather than the seller. Many online shops find it more convenient to offer on Amazon than on other current eCommerce platforms because of the features included in Amazon FBA. The Seattle-based company also offers a free Amazon Calculator to aid sellers in running existing Amazon FBA stores and calculating Amazon fees. Any seller has to know how to use FBA calculation. The Amazon FBA calculator is explained in detail here.
What is the formula for calculating Amazon FBA profit?
The profit margin on each sale of a product. It is computed by subtracting the landed cost of a product (per unit) from the revenue from each specific product and any other costs (such as advertising).
When Should You Use the Amazon FBA Revenue Calculator?
Top Amazon sellers primarily use the Amazon FBA calculator to conduct product research. This is the greatest moment to use this free Amazon seller resource. On the homepage, you are going to find a lot more information.
Top Amazon sellers, on the other hand, use the Amazon FBA calculator to reprice their items. The FBA revenue calculator gives them information on how to increase or decrease the sale price of its products.
The FBA calculator, as a supplement to an Amazon repricer, offers Amazon sellers a clear image of profit margin consequences. As a result, sellers will understand what item cost price bracket they need to stick to stay profitable.
FBA Revenue Calculator: How to Use It!
Following an overview of the Amazon FBA calculator’s purpose and the fees associated with an FBA transaction, here are some pointers on how to use it for product research and margin analysis.
- STEP ONE:
One can enter any search terms related to the product (e.g. round the clock, wooden clock) and even its Isbn, Asn, or Access code to begin using the FBA calculator for product research.
- STEP TWO:
Now that the product associated with the ASIN has been displayed, sellers can start filling in the values in the Amazon fulfilment column. The seller will be able to assess the potential profit margin for this alarm clock by doing so.
- STEP THREE:
The seller must next insert the value for “Ship to Amazon” under the Fulfillment cost after entering the number for the item price. The mentioned input box represents the average per-unit price of a product a seller intends to sell.
- STEP FOUR:
Sellers should enter the “Cost of Product field” after the “Selling on Amazon Fees.” This is an important field to fill out since it refers to the “all-in cost” of the vendors’ items on Amazon.
This Amazon FBA revenue calculator helps sellers determine how much it costs to run an Amazon FBA store. Likewise, using the Amazon FBA Calculator early on in the business can assist FBA sellers in determining which product is good for launching in their Amazon shop and check the homepage for further reference.