The Amazon FBA Calculator is a handy tool to use if you’re selling Amazon FBA. It helps you calculate fees, shipping costs and other expenditures in order to calculate profits. In this post, we’ll show you how to use Amazon’s FBA Calculator and explain the fees and expenses you need to take into account.
How to Use the Amazon FBA Revenue Calculator
Watch the video below if you need help filling in the empty fields:
Types of Costs Included in Amazon’s FBA Calculator
Amazon Referral Fee
This is pretty much what they charge for having your product listed on Amazon. They call it ‘referring’ customers to your listing. Generally, this fee is a percentage of the sale or retail price (usually around 15%), which varies by category. The minimum referral fee is usually one dollar – check out the referral fee details by category here.
This isn’t explained very well in the Amazon FBA calculator. We’re assuming it’s the charge for receiving your FBA items and placing them into the warehouse storage. On their help page here they charge a $1 fee for each ‘standard-size non-media’ item.
Pick & Pack
The cost of retrieving your item in the warehouses, packing it (including the packing materials) and getting it ready for shipping. That includes labor costs as well.
Amazon calculates shipping costs (from warehouse to the buyer) based upon weight. ‘Free shipping’ isn’t really free; You as the FBA merchant foot the bill, but for customers it looks quite attractive. You usually don’t cover 100% of the costs, however, as a portion of Prime membership fees are included in offsetting Amazon shipping costs.
Hence the name, this is the cost for storing your product each month in the Amazon warehouse. It’s calculated on a monthly basis (obviously) and per cubic foot. Note: FBA Storage fees changed on Oct 1, 2016. Check here for changes.
This cost is also included in the Amazon FBA calculator. It’s charged per item for preparing your goods before shipment, such as applying UPC code labels or shrink wrapping items.
Amazon Seller Fees
You can find an overview of Amazon seller fees here.
When to Use the Amazon FBA Calculator For Best Results
The free calculator that Amazon offers is really only built for estimation of Amazon fees, not calculation of profit margins. Amazon’s FBA calculator is a good way to compare bottom-line profit estimations between Fulfillment By Amazon (FBA) or Merchant (FBM) if you haven’t yet started selling on Amazon. However once you’ve started selling on Amazon with FBA, you will need more sophisticated tools to help you manage and track your sales in real time.
Profit Dashboard for Amazon sellers