Email marketing: what it is and how to implement it

One of the biggest challenges for any individual or professional salesperson is knowing exactly how much profit they plan to make at the time of launching a new product. Indeed, to know if your e-commerce business is profitable, you must know how to analyze and determine your net profit and the return on your investment. 

Also, to sell on Amazon FBA you must take Fulfillment into account all the costs associated with the online sale of your products: selling and recommendation costs, shipping costs, various taxes, FBA fees, returns, advertisements, etc. In this article, 

I will focus on the fees of the Amazon marketplace and its FBA e-commerce solution that can be easy to calculate thanks to a specific calculator.

What are Amazon FBA fees?

What is Amazon FBA?

First, Amazon term has a logistics service program called Amazon FBA (Seller Central). Also, with FBA, you send your products to Amazon warehouses. 

Then they take care of storage, distribution, shipping to customers, customer service, tool, and closing returns. Then, in return for this service, Amazon charges a fee to sellers, called the FBA fee. This varies depending on the size and weight of the item.

Why sell on Amazon with FBA?

Also, many Amazon e-merchants choose to go through the Amazon FBA service because the program has many advantages. First of all, it saves time for sellers who outsource all the logistics and saves space since the goods are stored in Amazon warehouses.

Also, when you go through Amazon FBA, your product is identified as a Prime product. However, this is an important factor for the conversion rate. 

This is because the majority of consumers on Amazon have an Amazon Prime membership. They are looking for customer service and fast delivery times that are essential to loyalty. In addition, professional sellers who have their brand, benefit from the "Buy Box" on the product page.

Amazon FBA Fees

So, you suspect that you won't be able to sell for free with Amazon FBA. This is because Amazon charges a commission for selling products on their site. Generally, commissions represent 15% of the selling price. 

Then, additional fees exist for the products you choose to have shipped by Amazon. It might seem simple but the Calculated costs related to shipping can quickly be a disadvantage for profitable e-commerce. 

Indeed, they vary depending on the size and weight of the item. To anticipate these costs, it is necessary to refer to the different levels of product size on Amazon. Also, changes can be frequent. 

That's why you should check the Amazon FBA calculator regularly to make sure you get accurate estimates. Indeed, small changes in size and weight can make a product profitable or not and impact your margin rates.

What is an Amazon FBA calculator?

An advantage to selling on Amazon FBA

Amazon offers its own FBA revenue calculator. Also, it is known by several names:

• Amazon Fee Calculator,

• Amazon Profit Calculator

• FBA Revenue Calculator.

There are important things to remember when using these calculators. First of all, they are based on the downloaded sizes and weights. Some users, when creating a list, evaluate these numbers, or even outright lament.

If you have a more direct understanding of the potential size and weight of your item, you can calculate and handling it manually using FBA's fee information.

Not all items that look a lot like your new product will have the same dimensions, and small changes in measurements can lead to significant changes in fees.

A better solution than the Amazon fee calculator

To help you in the best way, I offer you my Amazon recipe calculator Excel file to allow you to calculate and handling Amazon fees in a few seconds.

Indeed, I have been using this file for years that will allow you to know the net profit before tax of your product. Thus, you will be able to check if your project is profitable or not.

My FBA calculator

So, in my Amazon fee calculation table, I include the following:

• Product costs

• Import

• Customs fees

• Amazon Selling Fees

• Amazon FBA Cost

• VAT to be repaid

How to calculate FBA fees and revenues in Europe and other countries?

Fees vary not only the type of product, size, and weight but also depending on the country. This is not surprising. Indeed, Amazon has different shipping rates for Amazon France and around the world.

How does the Amazon FBA recipe calculator work?

The Amazon FBA calculator takes into account several parameters in its result:

• Cost of purchasing the product

• Price at which you want to sell,

• Additional unit costs (advertising, shipping costs from your manufacturer or wholesalers to your carrier, the shipping cost to Amazon, etc.).

Thus, with the help of these elements, the calculator can make you an estimate of your monthly profits and income according to your article.

In addition, the Amazon calculator shows you the estimated monthly storage costs. This is because Amazon charges a warehousing fee, which can increase over time. Therefore, this means that sending a significant amount of your stock can be risky with no sales history.

Amazon FBA Fee Calculator

What are the other costs to sell on Amazon?

As a result, FBA fees represent a small portion of your selling costs on Amazon. These fees may seem small for an individual item. But, the more units you sell per month, the more they can add up and represent substantial sums.

However, other costs related to selling on Amazon are reduced as your sales volume increases. For example, the monthly subscription fee when you have a business seller account. Indeed, it is important to distinguish between fixed and variable costs. Even so, some variable costs may decrease depending on the quantity chosen.

Finally, in the costs to consider when selling on Amazon, do not forget the cost of labor. For your business to be profitable, it is essential to take into consideration the time spent on your business and what it costs you in hourly cost(minimum). And whether you are alone or you have employees.

The supporters of the FBA against those of the FBM

Finally, the opinion of some sellers is to say that entrusting the logistics and customer service to Amazon represents a high cost. Also, they prefer to manage everything from A to Z. Indeed, this can be a good solution but this option has quite drawbacks.

First of all, you have to face a competitor whose items are identified as Prime. On the other hand, you need room to manage your stocks. Especially if your items are bulky he will make you your warehouse ... 

Then, the management of shipments (which involves keeping your delivery time), returns, and customer service are time-consuming and it's less time to develop your business and optimize your product sheets. Whether you sell new, used, or drop shipping it's the same thing.

Also, Amazon's fees aren't that excessive when items are small and light. For larger and heavier items, you could save money. If you don't use the Amazon FBA service, make sure it's a non-competitive niche, where Prime may not be essential or Successful for sales. In these cases, it may be a good idea to ship the items to customers yourself.

Final Thoughts

The Amazon FBA calculator is a nifty and free tool that any seller should use to get an estimate of the fees and revenues for each product – existing or potential – sold on Amazon. It is so easy to use and can save you a lot of headaches and lost income. 

If you don't bother because you don't have the time, consider hiring someone to do it for you(with the lowest dollar pricing) – the amount you save can cover their fees while allowing you to earn a good extra buck.

by Using Amazon FBA you get a good percentage of purchase (referral) depends on how much traffic you can get from social media (video games, Facebook...)