If you’re an Amazon seller, you can agree that making sale projections can be stressful and overwhelming. As a seller, you understand the importance of experimenting with various pricing points and cost analysis. This is necessary to ensure maximum profit margins, to account for the fees imposed by Amazon, and to maintain a competitive standing among your competitors in the marketplace. Fortunately, the times of plugging a bunch of formulas into an Excel spreadsheet are long over. Amazon has created an FBA calculator that allows you to calculate margins and fees to figure out the top-selling products and determine which fulfillment method is best for your particular needs. While this tool may seem intimidating initially, especially if you’re new to the Amazon seller world, using this tool can significantly benefit your business. Please continue reading to learn how the FBA Revenue calculator works and how our knowledgeable AVASK Group can help you improve your e-commerce business.
What is the FBA Revenue Calculator?
As mentioned above, before you launch a product on Amazon and after, you must do extensive research and calculations to estimate a product’s potential worth, considering investment costs, FBA costs, and sales. To ensure your business is running like a well-oiled machine, you’ll want to use Amazon’s FBA revenue calculator. The FBA revenue calculator is a tool used to calculate how much revenue to expect when making a sale. The calculator estimates their net proceeds if sellers were to try Fulfillment by Amazon. This service allows Amazon sellers to send inventory to Amazon fulfillment centers and lets them handle the process of packing, shipping, and customer service for a fee.
To use this calculator, you will enter your product details and insert the values into the fulfillment column provided, and then it will generate your report. The final report will then supply you with your estimated Amazon FBA fees, margin impact, and general product research that can be used to determine the ideal product cost budget range for a specific profit level.
What Are the Benefits of Fulfillment by Amazon (FBA)?
There are numerous benefits to opting for Fulfillment by Amazon services. Firstly, your products will automatically be eligible for Prime Shipping. This is a significant advantage against competitors whose customers won’t receive their items within two days. It’s crucial to remember that the quicker a customer receives their products, the more likely they are to purchase a product from your business again. Another benefit is that you’ll be able to focus on sales, while the responsibility of packing, shipping, and customer service will all be handled by Amazon.
As you can see, there are various benefits to Fulfilment by Amazon, and the revenue calculator can help you estimate your sales projections. If you’re looking for ways to expand your Amazon business, please don’t hesitate to contact our talented team at Ebiz Accounting to discuss how we can help you make the right financial decisions when engaging in the Amazon Marketplace.