As a seller, how can you not know your profit? So how can we understand the Amazon FBA fees and estimate the potential profit to facilitate a smarter selling strategy? Using an Amazon profitability calculator is necessary now.
Online Amazon profitability calculator
The Amazon Profitability Calculator is a new tool in the Helium 10 Chrome extension that lets you know the profitability of your products at a glance.
Scenarios for FBA Amazon profitability calculator
Profitability Forecast
Helps sellers calculate the profitability of each product and conduct predictive analysis based on the profitability, so as to determine the potential profit of the product in the future, and formulate smarter sales strategies.
Cost Control
The calculator can calculate the total cost of each product based on FBA distribution costs, inventory costs and other factors, so that sellers can clearly understand the cost of their products in order to better control costs and improve profitability.
Comparison of product selection
Helps sellers to compare the profitability of different products so that they can choose more profitable products. Sellers can forecast and compare the profitability of different products and then determine which product has more potential profit margin.
Amazon Operating Costs
Marketing Costs
Marketing costs include on-site advertising, on-site promotions and other marketing costs.
On-site advertising upfront investment can be set to 50% (advertising cost as a percentage of the selling price of the product), by which the upfront investment cost can be viewed.
In-site promotion costs, such as: in-site Deal (LD, BD, DOTD), coupon, in-site promotions.
Other marketing costs, such as: Google ads, Facebook ads and other off-site promotion costs, as well as brushing, evaluation and so on.
After-sale cost
After-sale cost mainly contains the return rate. Normally speaking, try to keep the product return rate below 10%.
After-sale cost (product undamaged) = (FBA shipping cost + Amazon commission * 20%) * return rate.
After-sale cost (product damaged) = (product cost + FBA shipping cost + Amazon commission * 20%) * return rate.
Selling on Amazon and finding a reliable Amazon FBA freight forwarder is a big step towards success.
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