How to Use Amazon FBA Calculator to Calculate margin

Amazon is the Number 1. eCommerce platform to successfully sell your products to billions of customer in pan India. You can get more profit if you know about how much fees amazon charged from you to sell on their platform. Today we’re going to know about how much amazon charges from you per product.

Why Amazon charges some commission? Think like that. If you want to build your own website then you will spend thousands of rupees on generating traffic. Customer trust amazon platform not you as a seller. So for that Amazon is going to charge some commission in order to use their platform.

Amazon FBA calculator helps you to know the commission charged by Amazon in case of FBM(fulfilled by merchant) as well as FBA(fulfilled by amazon). You can compare the cost for these two and choose right mode for selling your product.

Which mode is suitable for you – FBA or FBM.

Fulfillment By Amazon

Amazon warehouse facility or FBA (fulfillment by Amazon) allows you to pick, pack, store and deliver the products to customer end. They handle customer return as well. For all this service amazon charges commission.

Commission charged by Amazon in FBA 

Selling on Amazon fees – Includes Referral fees and Fixed closing fees.

  • Referral fees – The referral fee is a fee Amazon charges you every time you sell a product. It is a percentage of the total sales price and varies according to category.
  • Closing fees – The fixed closing fee will be charged based on item price and category.

Fulfillment by Amazon

It is calculated based on the item’s weight and dimension. Below are the fees charged –

  • Monthly Storage of your products in Amazon fulfillment center.
  • Picking and packing of your products
  • Shipping of your products to the customer
  • Weight Handling

There are other FBA fees that are charged which are not included in a calculator like GST, return fees, etc. Remember this fees varies and not 100% accurate. You can use it when you are searching for the product and calculating a rough margin. You can get the idea about what can be the selling price of your product to get the margin.

Fulfillment by Merchant

In case of FBM one commission charged by Amazon which is Selling on Amazon fees. FBM can be profitable but you have to pack the product by yourself, store the product at your end and contact Amazon Transporation service(ATS) to deliver the products to customer.

Watch the video below to know more –

Step By Step Process –

Step 1. Search Kitna milega profitability calculator in Amazon or visit this link – https://sellercentral.amazon.in/fba/profitabilitycalculator/index?lang=en_IN

Step 2. Search the ASIN number of product which you want to find out FBA commission.

Step 3. You will see 2 columns, First is for FBM which means ‘Fulfillment by merchant’ and Second is ‘Amazon fulfillment’.

Step 4.  Fill the Item price and click on Calculate Button. You will see commission that is charged by Amazon which is Selling on Amazon fees and fulfillment by Amazon.

Step 5. Your next step is to fill the cost price of product.

Step 6. Click on Calculate button and see your net profit.

What to Select FBA or FBM?

Go with Fulfillment by Amazon. You will get prime tag and buy button. You can think of promoting a product using Amazon PPC campaign, FB advertising, etc. Amazon is going to handle everything for you. Lastly, you need to see that how much profit you’re going to make with the product.

Leave a Reply

Got an third-party tool for selling on amazon to suggest? Let us know!

About

Curated Directory of Tools for Amazon Sellers |
Find the best amazon selling Tools based upon user reviews.

Navigation
Follow