Profit estimation made easy with the FBA Revenue Calculator
Selling on Amazon can be made easy with the right tools. In particular, making projections for future sales, variations in products, or different shipping and fulfilment methods can be taxing. That’s where revenue calculators come into the picture.
Amazon Sellers in the UK have benefited from the use of the Amazon FBA Revenue Calculator, which is designed to bring added clarity by offering a comprehensive assessment of pricing, fees, and profitability. It also allows sellers to understand how their revenues and profits may change if they were to go with a different combination of products or change their fulfilment methods.
Here is a comprehensive guide on the use of the FBA Calculator UK.
Amazon Sellers in the UK have benefited from the use of the Amazon FBA Revenue Calculator, which is designed to bring added clarity by offering a comprehensive assessment of pricing, fees, and profitability. It also allows sellers to understand how their revenues and profits may change if they were to go with a different combination of products or change their fulfilment methods.
Here is a comprehensive guide on the use of the FBA Calculator UK.
What is the FBA Revenue Calculator?
It is a dedicated e-commerce tool for Amazon sellers, created to help project profits, revenue, shipping, and margins for different products and fulfilment options. The primary objective of this tool is to ensure that anyone selling on Amazon has the knowledge necessary to make decisions relevant to their needs.
The Amazon Revenue Calculator allows you to project profit and margin estimates based on a range of factors, including:
- Products (both those you currently offer as well as any others on the Amazon catalogue – or even products that don’t exist on Amazon yet)
- Fulfilment methods (whether you are using Fulfilment by Amazon or handling all packing, storage and shipping on your own)
- Comparison between various strategies and locations
This way, Amazon sellers can understand how their profits and margins will change if they were to offer different products, choose a different fulfilment method, or even if they were to sell in different Amazon stores.
The tool offers an easy comparison between different parameters covering all associated costs and fees, including storage and handling fees, as well as any fees for inventory management, shipping, and taxes. Whatever is not immediately available via the tool can be manually added to give you a fuller picture.
The tool offers an easy comparison between different parameters covering all associated costs and fees, including storage and handling fees, as well as any fees for inventory management, shipping, and taxes. Whatever is not immediately available via the tool can be manually added to give you a fuller picture.
Step-step-guide to using the Amazon FBA Revenue Calculator
To start using this tool, go to the Revenue Calculator Page, and sign in to your Amazon Seller Central account. You can also use the FBA Revenue Calculator as a guest, without signing in.
Once you’ve finished this process, follow the steps outlined below.
Once you’ve finished this process, follow the steps outlined below.
Step 1. Enter the product information
Input product information into the Revenue Calculator. You can search for an existing product on the “Search Amazon Catalogue” tab. This combs through products already offered in Amazon stores once you input their SKU, title, ISBN, UPC, EAN or ASIN.
For products not listed on the Amazon catalogue or your seller catalogue, use the “Define product” tab to enter the relevant product information, like dimensions, category, and weight, to assess cost and profitability.
Once this information is entered, you can see the estimations put forward by the tool.
For products not listed on the Amazon catalogue or your seller catalogue, use the “Define product” tab to enter the relevant product information, like dimensions, category, and weight, to assess cost and profitability.
Once this information is entered, you can see the estimations put forward by the tool.
Step 2. Interpret the results
Once the required information has been filled in, you can see comparisons for different fulfilment options, with net profit and margin previews for each. Based on the information offered through the FBA Revenue Calculator, you can now choose which programme, method or strategy appears most suitable.
The tool also allows you to explore and review your options and profitability, input changes to various parameters for selling within the UK, and even explore what happens if you sell your products across Europe or globally.
The tool also allows you to explore and review your options and profitability, input changes to various parameters for selling within the UK, and even explore what happens if you sell your products across Europe or globally.
Step 3. Estimate your monthly revenue
The Revenue Calculator will provide you with information like the net profit per unit for each product you intend to sell. You can figure out an approximation of your monthly revenue as an Amazon vendor by multiplying the projected net profit per product sold times the predicted number of units that you will sell in a month.
You can also play around with different products, including those you don’t currently sell or even ones that aren’t listed yet (just input various parameters for any product, and the tool will do the rest).
You can also play around with different products, including those you don’t currently sell or even ones that aren’t listed yet (just input various parameters for any product, and the tool will do the rest).
Is the FBA Revenue Calculator free?
Yes. The Amazon FBA Revenue Calculator can be used on the Amazon website with no charges, whether by guests or registered sellers through Seller Central. You can easily search for costs associated with selling an existing or new product, find costs based on product information and dimensions, and get approximations on selling in bulk.
The calculator can help predict fees related to utilising FBA services, like additional fees for storage, referral, shipping, and fulfilment, depending on the specifications of the products, storage period, storage space, and more. Learn about those potential costs here.
The calculator can help predict fees related to utilising FBA services, like additional fees for storage, referral, shipping, and fulfilment, depending on the specifications of the products, storage period, storage space, and more. Learn about those potential costs here.
Is FBA really profitable?
FBA can prove to be the most profitable option for many sellers. In the UK, Amazon operates a large network of fulfilment centres, making FBA a highly convenient and accessible choice for businesses looking to streamline their logistics.
You can get reduced shipping costs, Low-Price FBA rates, and more depending on your business models and goals. Moreover, 70% of SME owners in Europe, including the UK, need support with logistics, VAT, and customs compliance (Source) – areas in which FBA can be quite helpful.
You can get reduced shipping costs, Low-Price FBA rates, and more depending on your business models and goals. Moreover, 70% of SME owners in Europe, including the UK, need support with logistics, VAT, and customs compliance (Source) – areas in which FBA can be quite helpful.
Demystifying FBA fees
The Fulfilment by Amazon programme comes with associated fees, as with any other fulfilment arrangement. Here is a breakdown of the various fees you are likely to encounter, along with a brief explanation of how these costs can impact your profit margins, and some tips to minimise your expenses as an Amazon Seller.
Understanding the different types of FBA fees
Sellers who opt for FBA can encounter various fees depending on product type, selling plan, and other factors. Some of the most common are listed below:
- Fees based on selling plans
- Individual Selling Plan: Here, sellers pay £0.75 per item sold, excluding VAT. Additional selling fees may apply for certain categories of products.
- Professional Selling Plan: Sellers on this plan pay a flat fee of £25 per month regardless of the number of items sold, plus additional selling fees.
- Referral fees
- Fulfilment fees
- FBA sellers send their products to Amazon's fulfillment centers, where Amazon manages storage, packaging, and shipping to customers. These sellers pay flat fees per unit, based on the product's size and weight, along with monthly storage fees.
- Non-FBA sellers (MFN) handle storage, packaging, and shipping on their own. These shipping costs are passed on to the customer, with rates varying depending on the shipping service selected.
- Other fees
Amazon Sellers can opt for one of two plans, each of which carries different fees.
Amazon charges referral fees for each item sold, with the amount varying based on the category of items. It is calculated on the total sales price, which includes the item price, shipping or delivery costs, gift-wrapping costs, etc., plus a digital services tax in the UK. These fees generally range from 7% to 15% (with some exceptions like Amazon Device Accessories, which have higher percentages).
Amazon charges shipping fees for both FBA and non-FBA (MFN) sellers, though the fee structures differ:
The cost structure also varies between sellers on Individual and Professional Plans, depending on the fulfillment method chosen.
Apart from those mentioned above, sellers can incur additional costs like inventory fees (which can include long-term storage fees, overage fees, and removal order fees); high-volume listing fees; closing fees (for media products); and refund administration fees (in case the seller refunds a customer after purchase and payment).
Calculate how FBA fees impact your profits
The FBA Revenue Calculator can help you evaluate the impact of various fees on your business. Use it to compare how your Amazon store will perform when using FBA vs other fulfilment methods, and see costs for selling within the UK and selling across Europe. You can analyse profit margins for various scenarios, and plan your pricing accordingly.
Tips to minimise FBA fees
There are always strategies to help reduce fees and keep your expenses low. Here are some ways:
- Choosing cost-effective products: By ensuring that your outlay to purchase or manufacture your products is as low as possible, you stand a better chance of turning a profit from your sales.
- Removing slow-moving merchandise from the inventory: Amazon tools easily allow you to find out which items are not selling as fast as you first envisioned. For items that haven’t sold in a long time, consider removing them from inventory so you don’t incur further fees for storage.
- Avoiding long-term storage: Similarly, you will incur charges for products that sit in inventory for a long time without being sold. So, focus more on fast-moving products and keep seasonal trends in mind to ensure your products sell out quickly.
- Using Amazon inventory tools to monitor products: Sellers who have registered for FBA can access a full suite of inventory management tools to monitor stock remotely. This way, you can keep track of your products and shipments, and add and remove products from inventory. Using these tools wisely will help you save on potentially unnecessary costs.
- Use programmes like Low-Price FBA Rates: This is a specific Amazon fulfilment solution for products priced at £10 or less, including VAT. Sellers with products meeting set criteria will get reduced FBA rates, which can help a lot with cutting overall costs.
As a seller, you can improve the visibility of your listings and website by using specific keywords and terms that users search for online. This is known as Search Engine Optimisation (SEO) and can help you reach a wider audience.
How to enhance your profit margins with the FBA Calculator
The key to improving your business’ profitability is to understand the various factors that impact it and choose the best combination that gives you optimal results. This is precisely where the FBA Calculator can be of immense use.
- Strategies to increase profit margins
- Utilising the FBA Calculator for profit maximisation
- Understanding your cost structure
Start by offering a diverse range of in-demand options, and use your learnings from the calculator to choose the best fulfilment and storage options. Try to optimise your product packaging, which will help you reduce shipping costs too. With the FBA Calculator, you can get a one-glance comparison of how changing each of these parameters will affect your profit margin, allowing you to choose the optimal scenario.
After inputting all your values, check the results, and simply compare and contrast different cost scenarios till you find one that has higher profit margins.
Simply put, your cost structure covers all your outlays – from the cost of making or buying your products, to various fees, and your selling price. You need to have a handle on this to correctly input the details into the FBA Calculator, which will then give you accurate estimates.
Calculating your total cost
In simple economic terms, your profit is your revenue – how much money you’ve made from selling your products – minus your expenses – everything you’ve spent thus far.
- How to calculate total cost
- Why understanding product costs is important
- Incorporating your selling price into cost calculations
To arrive at your total cost, sum up all the items in your cost structure (defined above). Subtract this from your total revenue to get your profit. The percentage by which your revenue exceeds your expenses will be your profit margin.
Understanding product costs can help you decide on your mode of operation, sales and pricing strategy, fulfilment strategy, budgeting, financial forecasting, and more. Only by calculating this accurately will you be able to figure out the best option for your Amazon business.
The selling price of your products is one of the most important elements. Your selling price must be more than what your item is incurring in fees and other expenses, including how much it cost you to buy it or manufacture it in the first place. You must be able to sell it with a net profit and not a net loss.
Using the FBA Calculator can help you determine the price by adding fees and costs, and analysing average prices of similar products.
Choose the best fulfilment method with the FBA Calculator
Multiple fulfilment options exist on Amazon, whether you want FBA, FBM, multi-channel fulfilment or other methods. The FBA Revenue Calculator is the optimal tool for you to cross-check costs and profits, enabling you to determine the most suitable option for your needs.
Conclusion
The Amazon FBA Revenue Calculator can be very useful to help you turn a profit from your online store – provided you use it correctly. Make sure to include all costs, account for labelling and prep fees, Amazon fees, returns and disposal fees, and any others that apply to the kind of products you are selling. Re-check regularly to ensure you are inputting the most accurate information, and test different scenarios to reach the optimal one. It would also be wise to spend some time learning more about selling on Amazon, including launching your brand, and Amazon Compliance Solutions. Doing all of this will go a long way towards making your Amazon Seller journey even more fruitful.
FAQ
How accurate are the fee projections made by the calculator?
The FBA Calculator is designed to provide the most accurate data and projections for our sellers. The accuracy of these results depends on the quality of the product information provided.
How do I track changes in Amazon fees?
The calculator is based on Amazon fees and is updated regularly.
Can I use the calculator for products not listed on Amazon?
Yes, simply input the product information, like dimensions, weight, and selling price.
Which fees do the calculator account for?
It accounts for referral fees, per-item fees for individual sellers, variable closing fees, fulfilment costs, monthly storage costs, and VAT. Any fees not listed can be added manually as well.
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