Amazon FBA Profit Calculator User Guide
This free Amazon FBA calculator is designed to help you quickly estimate the profitability of potential products when conducting product research on Amazon.
Please note, though: It’s not bulletproof, and there are many, many nuances to Amazon fees. We have tried to incorporate as many of them as possible while also keeping the tool easy to understand and useful as a quick reference guide for potential profitability.
Amazon fees can and do change, so before committing large sums of money to an inventory order make sure you double-check all costs, measurements, and fees.
To get started with the Amazon FBA calculator, follow these steps.
Step 1: Enter Product Info
Firstly, enter the key metrics for the product:
- Selling Price: The total price you expect the product to sell for in dollars.
- Monthly Sales: The number of units you expect to sell each month.
- Category: The Amazon category you expect to sell in.
- Storage Time: The number of months you expect to store this product. If unsure, use three months to be safe.
- Size Tier: The fulfillment tier your product falls into. If applicable, you’ll also be asked to select a weight tier and/or the actual weight to calculate accurate fulfillment fees.
Step 2: Enter Product Costs
Next, enter the main costs associated with sourcing the product:
- Unit Cost: The total cost you pay to your supplier.
- Unit Freight Cost: The cost of shipping a unit of product from your supplier to Amazon.
- Duties: The import duties related to this product, as a percentage. This can be determined by performing a search with a HS code lookup tool.
- Other Costs: Any other costs related to having your product manufactured or shipped to you. This should be input as a percentage in relation to your unit cost. For example, if you order 1,000 units at a total cost of $2,000 and pay $200 for a pre-shipment inspection, you would add 10% here ($200/1,000 = $0.20, 10% of your $2 unit cost.). To keep things simple, you can always leave this field empty.
Step 3: Understanding Your Results
Once you’ve entered the relevant data, you’ll see a number of different outputs in the following two areas:
1. Selling Fees
First, you’ll see an Amazon FBA fee calculator section with estimates of:
- Referral Fees: The commission you pay Amazon for introducing a customer to you.
- Fulfillment Fees: The FBA fees you pay Amazon to pick, pack, and ship your product.
- Storage Fees: Estimated total storage fees at January – September rates. This figure will be approximately 3x in October – December. Remember, this isn’t a monthly storage fee and instead the total based on the storage time you choose.
- Total Landed COGS: Your total cost to land a unit at Amazon.
Next, you’ll be given a range of profitability metrics, including:
- Net Profit: The estimated net profit from each unit sold.
- Profit Margin: The estimated profit margin on each product sold.
- ROI: The return on investment from the capital invested in your COGS.
- Monthly Revenue: The estimated monthly revenue for this product.
- Monthly Profit: The estimated monthly profit for this product.
- Added Brand Value: An estimated projection of value added to your business by selling this product for 12 months. This is a vastly simplified estimation and, due to the number of variables involved, not a concrete number. The intention is for it to serve as an inspiration and to help you think long-term about the overall value you are building.
Remember, the figures this Amazon FBA calculator provides you with are estimates based on the USA marketplace. But, by having a clear idea of your overall Amazon FBA fees and profit margins, you can quickly decide if a product is worth pursuing or not.
If you want to manually check the Amazon FBA fees you might pay, check out Amazon’s in-depth pricing page.
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