Web Retailer Research shows only 9% of Amazon Sellers make less than $10,000 per year, 16.7% of Amazon sellers make over a million dollars. And a very small 2.1% make over 10 million per year in revenue from Amazon’s marketplace.
So how do you reach the top 2.1%?
One of the most critical factors that determines your success on Amazon is your profit margin per unit sold. Based on which you can make many important decisions such as
- Should you actually go ahead with the product of your choosing?
- Should you take another look at sourcing options?
- Is the price point selected optimal?
While calculating profit one of the things that’s easily neglected is FBA charges. You might think on a larger scale it’s negligible but take another look. We take the following into account while calculating your profit margin –
- Revenue – Selling price + Shipping cost charged to the customer
- Amazon referral fees and closing fees
- Amazon fulfillment cost OR seller fulfillment cost + Average shipping cost to Amazon
- Cost of good/product
Net profit would be revenue minus cost of the product, Amazon referral fees, closing fees and fulfillment costs.
Few of our other interesting product tools
Keyword Search
Find the best keywords for your listing.
Product Source
Make smarter sourcing decisions.
Reverse ASIN
Are your keywords indexed by Amazon?
Listing Quality Checker
Optimize your listing to sell more
Frequently Asked Questions
Where can I find details on fees applying to my FBA account?
The Settlement Report provides a detailed explanation of your product shipping charges. You can view the Settlement Report under Reports > Payments > Settlement Reports. You can download these reports and open it with excel.
You can also see estimated fees for individual products in your Amazon-Fulfilled Inventory in the Fee Preview column.
How do I calculate the shipping charges for units purchased from my account?
You can use SellerPrime’sFBA Revenue Calculator to enter specific products and estimate how much it will cost to use Fulfilment by Amazon and how much revenue you could earn based on the price you choose for your product listed on Amazon.
How to get more customers using Amazon FBA?
Amazon FBA allows you to reach more and more customers through subscribing to Amazon FBA. You can win customers over by giving them various incentives like multiple shipping options, fast delivery options, an easy return process, and trustworthy customer service,etc. from Amazon.
SellerPrime further helps the sellers to reach more potential customers by giving personalised suggestions about the products listed on Amazon so that sellers could increase their sales.
Does the Amazon FBA branding also help in increasing sales?
Yes, Amazon FBA branding does help in increasing the sales of a product on Amazon. Amazon FBA logo acts as a reassurance to the people that the product they are buying is 100% genuine. This further adds an extra layer of confidence in the minds of the consumer and they readily buy the product without thinking much about the quality of the product.They correlate your product to a branded product. It’s most likely that you will gain more sales if you buy Amazon FBA subscription. Also, you can provide a good customer experience that meets customers’ expectations using Amazon FBA.
What is the basic cost breakup of Amazon FBA?
Fulfillment fee depends on the item, its dimension and weight and shipping method used. There are broadly three categories in which products are listed.
Items are classified as either Small Size, Standard Size or Oversize based on the unit dimensions and weight.
Is Amazon FBA Worth the Cost for Your Business?
Fulfillment by Amazon is used by a lot of third-party sellers. This is simply because of the reason that these sellers are finding extremely beneficial to use it. This is because it makes handling customers and managing your sales easy. If you do decide that FBA is right for you, you can learn how to use it in the most efficient way through many sites.
What is Amazon FBA revenue calculator?
Amazon FBA revenue calculator is a tool which helps the sellers in finding out the expected profits against the total cost that they are incurring on selling the product that they will list on Amazon. It helps you in doing the “Feasibility Study’ of selling a product on Amazon and also helps in projecting the future estimated profits that you can expect by listing your product on Amazon. Amazon FBA Revenue calculator does so by comparing the different costs involved in listing and selling your product and matching that with the expected revenue that the seller will receive from the product.
What is an Amazon fee calculator used for?
Amazon fee calculator or Amazon seller fee calculator can be used to find how much it costs to sell your products online on Amazon. Amazon Fee calculator is the fastest and simplest tool to find out how much Amazon will charge you to sell your products on Amazon.
What are the benefits of using Fulfillment By Amazon?
Amazon fulfillment or Fulfillment By Amazon is a very useful tool by Amazon which helps you in a lot of ways to make your business grow faster parallel to gaining the trust of customers. FBA lets you store your products in Amazon’s fulfillment centers and it picks, packs delivers the products, and also supports customer service and returns for these products. Best of all, Amazon FBA also helps you scale your business and reach more customers.
Is Amazon FBA a bang for your buck?
Despite the many fees Amazon charges for storage, order handling, pick & pack, weight handling, and commission, Amazon FBA is still worth it for most of the sellers. Selling via Amazon FBA makes you a far more desirable seller on Amazon than others which helps in making a massive difference in your sales on Amazon, provided that the product you are selling is rightly priced and the services provided with the product listed are good.
SellerPrime helps the sellers in finding out the ways in which the sellers can list their product on Amazon in order to gain maximum sales. SellerPrime’s revenue calculator also helps in finding out whether it is feasible to sell on Amazon for a particular seller or not. Using this tool, the sellers can find out statistically whether to list their product on Amazon or not.
