How to calculate the cost of FBA services

How to calculate the cost of FBA services

Experienced sellers already know their expenses and imagine the profits they can get from bringing a new product to the market. How much do the services of the biggest online store cost? How much do competitors spend on FBA?

Anyone can estimate their profit on Amazon even before the delivery

Amazon Revenue Calculator will help us to calculate the expenses and assess the benefits of FBA. Choose your product or a competitor’s analogue and set the estimated cost, delivery and manufacturing expenses. The system will calculate all expenses and show the net profit.

For example, let’s take the item from the last review ­– a handbag. For convenient calculations, we set the price as $100, delivery costs according to our fees ­– $5, and the cost of manufacturing – $35. We will also enter data on Fulfillment by Partner Trade for comparison.

The expenses were distributed as follows:

  • 40% manufacturing and delivery to the warehouse,
  • 3% preparation for shipping and delivery,
  • 15% Amazon fee,
  • profit – 42%.

Be sure to calculate your profits with estimated expenses and a competitive price of products. In the next article we will give more details on how to use the calculator.

Another useful feature of this calculator can be seen on the right side graphs. There you can see a visualized monthly turnover of product, expenses and revenues with the estimated number of sales. How much your competitor sells can be determined checking this topic or by using special services.

As a bonus, we recommend using a third-party developer calculator here (same functionality but much prettier). Here you can also perform calculations for other stores.

In conclusion, we want to say that 15% of the price that Amazon takes is not a small amount. But the potential of the biggest foreign exchange market is more than justified. That is why currently it is the most promising and desirable business for many people.

If you did not manage to deal with the calculator or have any additional questions about the listing of your goods on Amazon, leave a request for consultation! P.S. A small announcement: in the near future we are going to open a registration for an access to the «closed» section of our website with educational materials on selling and promotion of products to the Western market. Stay in touch!