Before talking about the Amazon FBA shipping calculator, we need to understand one question, that is, why do we need a calculator? In order to make it more convenient for sellers, Amazon has created this tool to allow buyers to see whether their store fees are within their expectations. So let’s take a closer look at the specific contents of the Amazon FBA shipping calculator.
The Amazon FBA calculator has only one function, which is how to determine whether a product is suitable for FBA shipment? So how do you use the Amazon FBA calculator?
Step 1: Calculate the total cost of each product
To determine whether a product is suitable for FBA shipment, you need to calculate the total cost of each product. Add up the following expenses, while also considering the costs of running your business:
1) Purchase cost:
Cost of purchasing inventory
The cost of shipping the product from the supplier to the designated location
The cost of shipping products to Amazon fulfillment centers
2) Return-related costs
transportation
Package
Price reduction promotion
3) As a seller, you need to make a list of the expenses required to run your business, including :
Operating costs
Water and electricity costs
Employee wages + benefits
Insurance
Travel expenses
Tax
Marketing expenses
Web Development
Warehousing
Rent, etc.
Once you understand these costs and set the profit margin you want to achieve, you can know the total revenue for each product.
Step 2: Divide the total cost by the number of products
Once you've calculated the total cost of all of your individual products, divide that number by last year's sales volume to get the cost of each product.
Step 3: Enter your data into the Amazon Seller Fee Calculator in Seller Central
The Amazon FBA calculator is located in the “All Statements View” area.
Step 4: Decide Which Products Are Best for FBA Shipping
Once you have the data, ask yourself the following questions:
How much does each product cost in a month?
Are the fees paid exceeding 30% of the product cost?
If you spread the cost across each product, can you still make money on that SKU?
For a large and heavy product priced at $10, FBA fees may account for a large portion of the cost, while the FBA fee ratio for a small and light product priced at $30 will be much smaller. Therefore, products with a relatively high average selling price are the first choice for FBA shipments. In addition, popular products that can be sold quickly are also very suitable for FBA shipments.
In short, the Amazon FBA calculator allows sellers to calculate independently within the platform and immediately display the data intuitively, allowing Amazon buyers to be prepared.
The above is the relevant content about the Amazon FBA calculator. If you want to learn more about Amazon’s knowledge, please continue to pay attention!
