Amazon FBA Calculator – The Complete Step-by-step Guide

In this article, I will cover everything you need to know about calculating FBA or ‘Fulfillment By Amazon’ fees. I will also share two important fees missing from Amazon’s calculator.

It is significant to continue computing these charges both before you pursue this administration yet additionally through the span of the offering procedure so as to guarantee that FBA is as yet productive for you.

The main things you should be keeping track of include:

• ‘Starting costs’ including shipping, photos, samples

• ‘Changing costs’ including FBA fees and returns

• ‘Marketing costs’ including paying for clicks and ad campaigns

In article post I will be focusing only on:

• How to calculate FBA fees
• How to save money on FBA fees

All of the other costs I mentioned will be covered in the near future.

Understanding all Fulfillment By Amazon fee types

FBA fees are divided into two main categories:

1. Fulfillment Fees
2. Monthly inventory storage fees

Fulfillment Fees

This fee is charged per unit and includes :

• Packing
• Shipping and handling
• Customer service
• Product returns

This also is partitioned into two classes, each with four subcategories:

Standard-size:

1. Small (1 lb. or then again less) – $2.41

2. Large (1 lb. or then again less) – $3.19

3. Large (1 to 2 lb.) – $4.71

4. Large (more than 2 lb.) – $4.71, including $0.38 for each pound over 2 lb.

Larger than usual :

1. Small larger than usual (1 lb. or then again less) – $8.13$137.32, include $0.38 for each pound over 2 lb.

2. Medium larger than usual (1 lb. or then again less) – $9.44$137.32, include $0.38 for each pound over 2 lb.

3. Large larger than usual (1 to 2 lb.) – $73.18$137.32, include $0.79 for each pound over 90 lb.

4. Special larger than usual (more than 2 lb.) – $137.32, including $0.91 for each pound over 90 lb.

Month to month stock stockpiling charges

Charged per cubic foot for all units being put away at an Amazon satisfaction focus dependent on the month and the volume of your item traveling through the office. This also is separated into two classes each with two subcategories:

Standard-size:

• January – September – $ 0.64 per cubic foot

• October – December – $2.35 per cubic foot

Larger than usual:

• January – September – $ 0.43 per cubic foot

• October – December – $1.15 per cubic foot

FBA fees examples

Amazon has provided three product examples so that sellers can get a good idea of how the calculation works:

Shirt model – Large standard size (1 lb. or then again less):

Measurements – 8.5″ x 4.8″ x 1″

Unit weight – 0.35 lb.

Active delivery weight – 1 lb.

Dress expense per unit – $0.40

Satisfaction expense – $3.59 per unit

How about we investigate this model, expecting your FBA expense is around $4.00, that is a really weighty charge in the event that you are selling minimal effort shirts in the $5-10 territory – on the off chance that your shirt costs $8, at that point you are paying half to Amazon and I have excluded your own sourcing and assembling charges. Your overall revenue here is clearly exceptionally low so except if you are moving an incredibly huge volume of the item I can’t perceive how this would pay off. Then again on the off chance that you are selling all the more top of the line T-shirts, suppose $50 and up this may be a decent choice for you as you will ‘just’ be paying 8% on a $50 T.

Infant bunk model – Small larger than average:

Measurements – 24″ x 7.5″ x 6″

Unit weight – 7.90 lb.

Active delivery weight – 9 lb.

Satisfaction expense – $10.79 per unit

A similar rationale applies to the infant bunk model – on the off chance that you are selling a $35.00 bed versus a $140.00 bed, it is likely going to merit your time and energy to utilize FBA with the more costly thing. This is clearly not in every case valid as overall revenues change meaning perhaps one merchant purchases the $35.00 bed discount from China at $5 a bed and the $140.00 is being purchased by the vendor for $110.00. This is a little impossible yet at the same time conceivable. You additionally need to consider the size and weight of the bed as the greater and the heavier it seems to be, the more you are paying to Amazon. The more likely situation is that the enormous bunk gives a bigger net revenue making it increasingly intelligent for the dealer to utilize FBA than for the littler bed vender.

Computer monitor example – Large larger than usual:

Measurements – 54″ x 35″ x 3.5″

Unit weight – 41 lb.

Active delivery weight – 49 lb.

Satisfaction expense – $73.18 per unit

Here is an extraordinary model with one screen selling for $90.00 and another selling for $286.00. It is highly unlikely it pays for the less expensive screen dealer to utilize FBA as in the wake of paying $73.00 in charges he is left with $17.00 and the person in question despite everything needed to buy the screen from their provider. Then again the dealer with the screen for $286.00 will be left with $213.00. Regardless of whether we consider that the more costly screen is likewise a superior brand so normally it is progressively costly to the source, it is increasingly beneficial for this dealer to utilize FBA.

How to Use Fulfillment by Amazon Revenue Calculator

Now and again attempting to make sense of if your item will show a benefit when utilizing FBA can be upsetting and confounding, that is the reason Amazon gives a Fulfillment by Amazon Revenue mini-computer. Here I will walk you through utilizing the FBA number cruncher. It happens to be entirely basic and direct.

FBA expenses are included various administrations that Amazon gives as a major aspect of their satisfaction administration. These include:

Dealing with orders

Active delivery

Capacity for 30 days

Approaching delivery

Amazon has various adding machines for various markets, for example, the US or the UK, so pick the market you are selling in and afterward scan for a thing like the one you are selling in the inquiry box. Right now item I looked for was ‘pants’. Amazon showed a couple of alternatives thus I picked the one that I felt was generally like the pair of pants I ‘plan to sell’. I picked the subsequent choice from the left in the top line which is ordered by Amazon as ‘Match Men’s Straight Leg Casual Pants’.

When you have done this Amazon will consequently show the FBA mini-computer where you have sections for:

The Item’s cost

Transportation which doesn’t have any significant bearing here since it is remembered for the FBA expenses:

The expense to deliver the item to Amazon

When you have filled in this data the FBA adding machine wraps up of the work – you should simply click ‘figure’ at the base.

Selling on Amazon charge is: $1.00

Satisfaction By Amazon charge is: $5.20

The charge for me to deliver the Item to Amazon is: $5.00

Complete satisfaction cost (Selling on Amazon expense + FBA + My transportation cost) is: $11.20

The net benefit is: $42.50

Net edge is: 85%

In the event that you are simply hoping to get a general thought of costs, at that point you can enter in exact sums yet on the off chance that you are building a strategy or arranging fastidiously, at that point contact potential providers and transportation administrations, for example, UPS before rounding this out.

It is really an entirely basic device to utilize yet successful. On the off chance that you plug in your numbers on a reliable premise, at that point you can keep on your income edges and ensure FBA is as yet a gainful alternative for you.

Critical Fees You won’t find in Amazon’s Calculator

Amazon’s calculator doesn’t break down two important elements:

“pick and pack” fees

Postage costs

#1: “Pick and Pack” fees

The “Pick and Pack” charge is paid to Amazon when they transport one of your things to a client.

The “Pick” charge is determined by the thing weight and measurements. The primary issue is to list your thing consistent with its weight and measurement. On the off chance that you missed it, you can be cheated.

The “pack” expense is charged once Amazon needs to pack the thing for you. A few things, similar to sharp items, must be pressed by Amazon rules. A few things, for example, books, doesn’t.

At the point when you make a delivery plan, there is a drop-down menu. Make certain to pick the correct class and on the off chance that you need to do the pressing yourself or pay Amazon for it.

The initial step is to check you have to do any pressing whatsoever:

The second step is to decide if you want to pack it yourself or pay Amazon for it.

#2: Shipping and handling

At the point when you transport things to Amazon, you can set aside a great deal of cash on the off chance that you get together various things to one box.

So as to do that you need a named printer (I utilize the QL – 700, however, there is a great deal of other great printers out there), that print marks appropriate to Amazon principles. When you mark everything with an Amazon name, you will have the option to send them all in on the double.

Moreover, each name done by you will spare you $0.3, on the grounds that you spare Amazon laborers the need to do it without anyone else’s help.

So as to mark things yourself, you have to pick the “Trader” choice at the drop-down menu called “Who names?”.

This drop-down shows in the third piece of the delivery plan process, called “Mark Products”.

Step by step instructions to save money on FBA charges

When you have done your estimations and expecting you have confirmed that FBA is the correct decision for your items, you will see the chomp being removed from your benefits and you are going to need to begin figuring out how to set aside however much cash as could reasonably be expected on the FBA procedure.

Tip #1: Creating your own FBA shipping plan

Most venders depend on Amazon to pick which Fulfillment Center (FC) will be utilized to store their thing yet this is a serious mix-up. What the vast majority don’t know is that Amazon will once in a while send your thing to various FCs so as to try out the market here. For instance, you may have conveyed a thing to a New-Mexico FC and Amazon may send that thing over to New-York or Nebraska. Presently you may be believing this doesn’t sound so horrendous yet in actuality, it is as they charge you each time they change offices. I suggest that you assume responsibility and make your own FBA shipping plan meaning you tell Amazon precisely where you need your thing put away and that you don’t need your items moved around. To do this just follow Amazon’s ‘shipping plan demand direct’:

Tip #2: Bulk shipping

UPS which is Amazon’s authentic FBA messenger has changed its approaches and it never again charges dependent on weight yet rather dependent on measurements as well. This is an extraordinary chance to set aside cash shipping things into Amazon for their FBA administration. Rather than mailing in the thing by thing, consider gathering a number of items and placing them across the board or two boxes. Utilizing the new UPS estimation a 20″X20″X20″ box gauging 20 lb. versus a 20″X20″ X20″ gauging 40 lb. will run you generally a similar sum. Simply be mindful so as not to surpass Amazon’s 50 lb. limit per box that contains numerous things – in the event that you do they are probably going to not acknowledge your shipment. Regardless, this little stunt can spare you a pleasant measure of money.

Tip #3: Long term inventory management

Presently I know the past suggestion was to transport in mass and you ought to yet just on the off chance that you are certain you can move your stock quick – in Amazon terms quick methods under a month since that is the manner by which you are charged. Presently you can keep a thing on the racks at Amazon for a half year and take care of your obligations yet after that timeframe you will consider a to be in charges as Amazon sees your items as a misuse of important space. The expense you will acquire is $11.25 per cubic foot and following a time of not selling you will be charged $22.50 per cubic foot. So my recommendation here is to possibly utilize FBA for winning ponies or if an item isn’t gainful recover it before the half-year cutoff period.

Tip #4: Free boxes

As all of you know the expense of boxes includes up and depending your volume can be somewhere in the range of $20/40 – $500 or more every week. One savvy method for reducing these expenses is addressing nearby stores and requesting to gather their utilized boxes once every week either at a decreased charge or for nothing. This is both useful for nature and will spare you a strong aggregate in the long haul.

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