Amazon is a real juggernaut. With almost 3 million active merchants, the platform is one of the world's biggest and most successful online venues.
As a result, it is no surprise that many salespeople, small business owners, and eCommerce marketers are curious to understand the potential of moving their products into the marketplace.
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| Amazon FBA Revenue Calculator - What Is It?: eAskme |
One of the best tools available to help these entrepreneurs is the Amazon FBA calculator.
It allows users to easily and quickly estimate the potential profits they might generate from their items if they offer them on AMZ.
This software can estimate the possible revenue sellers could generate by considering product categories, sales volume, and pricing. Let's check how it works.
What Is the Amazon FBA Calculator?
Amazon FBA revenue calculator is a tool developed to help merchants estimate their Amazon FBA expenses when selling items on the platform.
It allows users to calculate the cost of selling an item on AMZ depending on their product category, dimensions, and weight.
The tool also estimates the Amazon FBA commissions incurred when offering a product in the marketplace.
How to Use the AMZ FBA Calculator?
Open the revenue calculator:
As soon as you have an item's ASIN, copy it and proceed to the Amazon product calculator.
Once the page loads, everything is greyed out, so you should enter it to open up the tool.
The revenue calculator is also compatible with other standard merchandise stock codes, for example, a UPC, ISBN, or EAN.
Enter your product ASIN:
The item is populated when you've entered the product ASIN and pressed search.
Amazon displays the item's title, its dimensions and weight, and the main item image.
Fill in the Amazon Fulfilment (FBA) Section:
Four pieces of information are needed to estimate the fees and projected profit. They include;
- Unit price. Your target selling product price.
- Ship to AMZ. How much does delivering a single unit to the marketplace's warehouse cost you?
- Product cost. How much does a single item cost you to purchase or manufacture?
- Average stock units stored. How many items do you wish to stock in the AMZ warehouse?
Fill in these details in the relevant boxes. Keep in mind that the average stock units are pre-set to one by default.
Get to know fees and prospected profit:
Once you have information entered into such four sections, press the calculate button, and the Amazon FBA calculator does the rest.
Now let's examine each of the sections of the estimator in turn.
Revenue tab:
This part details the commissions AMZ charges you for doing business on its platform.
You may see that your total revenue equals the sale price, then it deducts a commission for using the marketplace.
Fulfillment cost tab:
This part shows the expenses involved in delivering the product.
You may see that the 'Ship to Amazon' cost is part of the entire amount, with the remainder being the commission Amazon charges to pick, pack and deliver the order to the client.
Storage cost tab:
In a perfect world, your goods would sell out immediately when they hit the AMZ warehouse!
However, life is not like that. Your items will sit on the platform's fulfillment center shelves for a while. Thus, you need to pay for this service.
Such storage commissions are tricky to estimate precisely — it varies depending on the average cubic footage of space your goods occupy daily.
Profitability tab:
This tab tells sellers how much they can expect to earn on a single unit when it sells.
Conclusion:
The significance of AMZ selling tools like FBA calculators can never be underestimated.
Regarding success in the marketplace, it's key to pre-sale calculations and thorough product research.
At the same time, to skyrocket your online business, you will require more than just a revenue calculator.
All-in-one third-party services provide a more in-depth study by pulling together essential factors influencing sales and profit margins.
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