Selling with Amazon FBA is a great way to grow a profitable business. Still, how can you know whether your business is going to be profitable? Do you know all your future expenses on Amazon? And finally, will your revenue exceed the expenses?
Calculations are key to knowing that. To know more details about how it works, please keep reading, we will explain different Amazon fees (storage, categories fees, etc.) and tell more about the major mistakes made by Amazon FBA sellers. We recommend you learning on others’ experience not to make the same mistakes in the future.
Keep in mind that online eCommerce business is not as simple as you buy goods from a manufacturer and resell them on the Amazon marketplace. There are also costs of samples, shipments, storage, promotion and so on.
Even if you don’t know how much everything costs, you can see your overall profit. However, these figures will tell you nothing unless you calculate your expenses and get pure profit.
Amazon offers FBA sellers their own tools for performing calculations. It is called Fulfillment by Amazon Revenue Calculator.
Also, we have a spreadsheet with necessary calculations that sellers usually use. Feel free to use this spreadsheet to estimate your future profit/expenses balance. Download it by clicking the link below and type in your values. The rest of the work is already done for you.
Amazon FBA calculator is a guide in evaluating FBA business only. If you use FBM model for working on Amazon, they don’t guarantee the accuracy of calculations. This is a helpful tool for sellers but not the only one source of truth. You better keep an eye on changes in fees and other costs.
In general, there are 3 categories for FBA costs included to our spreadsheet:
Amazon FBA calculator takes into account the following ones:
Once you fill in all the lines in the Amazon profit calculator, it will show you the possible Net Profit and Net Margin.
Still, FBA sellers need to know EVERYTHING about Amazon fees to know the principle of these calculations. Let’s dive deeper into the details and see what fees does Amazon charges from online sellers.
Let’s begin with the general Amazon fees and proceed to specific FBA fees. So, if you are an FBA seller, just have a quick glance at the first part and move to the second part. Still, it is highly recommended to learn the details about referral fees that vary from category to category.
Also, these are fees for the US sellers, as they differ for other countries.
Every seller has to pay for their participation in the world selling service. Here is a quick overview of the general fees you need to pay to Amazon.
So, after we have learned everything about all existing Amazon fees, let’s see what are the most common mistakes among FBA sellers. They are usually miscalculated while paying:
Some of FBA sellers just forget about the existence of referral fees, some of them don’t know the certain size of their products and finally, have to pay more than it was expected. Also, keep in mind that the longer you keep your products in Amazon fulfillment centers, the more fees you’ll pay for that.
Also, keep in mind that fees may differ from country to country, so please check Amazon official website twice before adding data to this revenue calculator.
You now know how to calculate profit with the FBA fee calculator taking into account all the possible fees charged by Amazon. Don’t miss a penny, if you want to become a successful seller.
And don’t hesitate to use our profit margin calculator in Excel to make sure that you haven’t missed anything.
We hope that your margin will be high and the expenses low!