Amazon FBA Calculator to Estimate Your Product Revenue
Running a selling business online sounds like a very profitable business model, especially on Amazon. The marketplace handles all the shipping tasks and returns of your goods. There is no limit to scalability.
Thanks to the marketplace’s FBA program, you can be confident that your products will be delivered on time regardless of the number of items sold. Nevertheless, using this solution involves many expenses associated with such a business model.
To grow profits, merchants should keep an eye on their profits and losses, reporting and tracking as much selling data as possible.
Let’s dive deeper with a detailed breakdown of how to estimate your profits on the platform and how the Amazon FBA calculator can help you with this job.
What Is an Amazon FBA Calculator?
With so many different costs connected to the FBA solution, it might be hard to get an accurate idea of how much it will cost without a service like the FBA calculator. Thus, to feel secure in the info you’re receiving from the tool, it’s crucial to specify which costs it includes and what those fees imply.
Amazon’s FBA calculator, also well-known as the AMZ revenue calculator, is a seller service made accessible by the marketplace that is developed to assess the expense of fulfilling your merchandise orders. It allows merchants to roughly correspond the cost of Amazon’s fulfillment prices with those of any other third-party order-fulfilling providers.
When Should Sellers Use the Amazon Calculator?
Researching new items to offer in the marketplace is one of the most useful objectives of the Amazon estimator for merchants. It gives sellers a clear idea of the FBA expenses for that product on a per-unit basis. It also offers them a sense of the potential profit margin they may anticipate when selling a particular item.
Besides, you may use the fulfillment by AMZ revenue estimator to define the results on your margins of altering the sale price or production cost of your goods. This info can determine your merchandise cost budget range, your minimal client pricing to remain profitable, and what kind of margin you may expect from a higher cost.
Finally, the AMZ profitability estimator may be used to compare costs and margins under every model side by side when considering converting from the FBA system to FBA.
Even though the Amazon FBA estimator offers perks to merchants, especially those who are just starting, its internal estimate can’t handle certain things. Consequently, seasoned users often utilize the free Amazon calculator for the first rude guesses.
How to Use Amazon FBA Calculator?
If you’ve got an active Seller Central profile, you may navigate to the revenue estimator via this link and check a short set of guidelines on this page. Below we provide a screenshot demonstrating what the tool looks like.
Step 1: Fill in the AMZ ASIN of the item you’re interested in examining in the provided search box. It’s a 10-digit unique code that might be found in the product listing URL.
Step 2: Click Enter and see the magic happen! The platform’s FBA fee estimator will churn out the selling fees and FBA fulfillment cost for your item!
Step 3: As soon as you have determined how much you need to pay the platform in selling costs, calculate your price points and margins to guarantee a healthy profit for your company.
Reasons Why AMZ Revenue Calculator Can Be Not Enough
The drawn-out and difficult process
Amazon clients who have utilized the free FBA estimator can claim how time-consuming it is. Merchants should manually fill in the product name, the Universal Product Code (UPC), or the Amazon Standard Identification Number (ASIN) to check the costs for a certain product.
No data export feature
Besides, the free AMZ profitability tool doesn’t include an information export option. It means that everything computed or shown with a free calculator can’t be saved or downloaded as a PDF file.
Some merchants on the platform record precise estimates to compare them to another AMZ product. However, this process may be stressful when a vendor doesn’t have enough technological expertise, such as keyboard shortcuts.
Comparison difficulty
The free Amazon FBA calculator can’t carry out simultaneous data comparison as split tabulation isn’t feasible, and information can’t be downloaded.
To benefit from crucial options such as data comparability, several AMZ sellers use third-party fee calculators. Of course, the final outcome of such a decision would be more sales and revenue.
No extra costs
Other important costs or charges associated with the business aren’t included, as the Amazon FBA tool primarily focuses on the platform’s fees.
This free AMZ profitability estimator doesn’t account for expenses like taxes, marketing, overhead, promotion, and additional hidden costs. Thus, having a more comprehensive FBA tool might be beneficial.
Bottom Line
Selling in the Amazon marketplace might become a very profitable venture when you have a winning strategy. The success of your company depends on discovering the right items, researching the metrics, and using such insights to come up with proper business decisions. It might be too laborious and extensive to do all the calculations on your own. Thus, tools like the profitability estimator on Amazon and special third-party services can help you put your business’s growth on top of the ladder.