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Amazon FBA allows sellers to outsource storage, shipping, returns, and other services to Amazon.
Therefore, Amazon charges a fee that lowers the profitability of a product.
This fee depends on several factors, which we will all discuss in this article.
Also, it's a big expense to determine these fees. That's why you should use an Amazon FBA Calculator Chrome Extension.
The Amazon FBA Calculator Chrome Extension AMZScout, for example, calculates all FBA fees and gives Amazon Sellers information about whether selling a product on Amazon is worth it or not.
The tool simplifies planning and gives an impression of what profit you can make at which selling price.
All you need to do is enter some information such as product costs and shipping costs.
The Amazon FBA Calculator Chrome Extension AMZScout then automatically calculates the potential profit margin.
In this article, we would like to show you how you have to proceed and which factors you have to consider when calculating the profit margin.
The Amazon FBA Calculator AMZScout is available in the Chrome Store as an Extension, but you can also navigate to the website of AMZScout and download it.
After you have downloaded and installed the Chrome Extension, the AMZScout symbol appears to the right of the URL within the Chrome Browser.
If you activate the Chrome Extension, a small window appears.
Inside the Chrome Extension, you can enter several variables such as product costs, shipping costs, taxes, or CPC costs per unit.
Data - such as dimensions and size of a product - are automatically detected by the tool.
It is essential that you first select a potential product on Amazon and then activate the Chrome Extension. However, the data can still be adjusted manually.
Depending on the supplier, negotiating skills, and order quantity, the unit costs vary.
In general, the higher the order quantity, the lower the cost per unit.
The purchase price thus has a decisive influence on the profitability of an FBA product.
If you haven't negotiate with your supplier yet, you can enter an estimated value into the Chrome Extension.
In addition to product costs, shipping costs also play an essential role.
After all, the products still have to be transported to the Amazon warehouse.
The fees vary depending on the supplier's destination and how fast the goods should be delivered.
If the supplier is located in China, the goods can, for example, be transported cheaply by sea (shipping) or for more money by air freight.
Note that you have to calculate the shipping costs per unit. Assuming you ordered 300 units and you have to pay 300$ for shipping, the cost per unit is 1$.
Bear in mind that you perhaps also have to pay customs duties and taxes.
Sellers have the opportunity to set a max. CPC for specific keywords, when they do paid advertising on Amazon.
These paid advertisements are separated from the organic results.
You can generate visibility for your products, which results in an immediate increase in the number of visitors.
However, for every click, you have to pay money to Amazon. So you can either leave this field empty or enter your budget.
Of course, every sale is subject to taxes. The sellers must fulfill their obligations under their VAT law.
Taxes differ depending on the country and circumstances. For the sake of simplicity, we have assumed a tax rate of 20% in our example.
The product price is the price for which a product will ultimately be available on Amazon.
Here you should not consider any planned discount campaigns, but enter a realistic price.
Estimated monthly sales
The monthly turnover is influenced by the number of units that you can sell.
The AMZScout Calculator suggests values based on historical data that are realistic for each Amazon FBA product.
It is recommended to downgrade this value slightly to minimize the risk of miscalculation.
The Amazon FBA Calculator AMZScout calculates the Amazon FBA fees based on the entered data.
These fees vary depending on the size and weight of an article and are divided into the following subcategories:
Amazon charges a monthly fee for storage in the Amazon Warehouse.
The Amazon FBA Calculator shows the estimated monthly storage costs.
Stock prices have risen continuously in recent years. There is much to suggest that this will continue to be the case in the future.
It is therefore risky to build up huge stocks at Amazon without having exact details about the sales history.
Commissioning and packaging
The dimensions and weight of a product determine the shipping costs, because Amazon defined different standard sizes for shipping boxes.
This size is categorized such that the product fits easily into the box.
Therefore, you must consider the size of the packaging as this has a significant impact on profitability.
In addition to the fees mentioned above, Amazon also charges a so-called referral bonus. Amazon charges an average of 15% of the selling price.
In addition to all the benefits of using Amazon FBA, there are certainly some naked parts.
The seller's fees vary depending on the size and weight of the article.
Amazon FBA fees can, therefore, quickly become quite expensive as the size or weight increases.
You can calculate all these fees with the AMZScout Calculator.
Therefore, you need the extension for the Chrome Browser, and you get all necessary information.
Also, AMZScout Calculator shows margin, return on investment (ROI), and the estimated monthly turnover.
Net profit and ROI are key metrics to determine whether a product is profitable or not.
The tool, therefore, helps tremendously in the planning of an FBA business, which is why every Amazon seller should use it.
We hope we were able to help you with this article and give you a useful guide for starting your own successful Amazon FBA Business.
If you have any further questions, please email us at email@example.com or comment directly below this article.
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