Amazon FBA stands for Fulfilled by Amazon. This means that you need to send your product to Amazon warehouse where they will deposit till you get orders. Once you get an order for your product on Amazon, they will deliver the product for you. So, your only concern is to send your stock to Amazon warehouse and make sales on their platform. You don’t need to worry about delivering the product to the end customer.
Amazon FBM, on the other hand, stands for Fulfilled by Merchant. This means that you will not send your stock to Amazon warehouse and instead keep it in your warehouse, apartment, storage box, etc. You will get the orders through Amazon website but you will be the one responsible for sending the goods to the end customer.
If you need more details just let me know. I am a seller myself and can provide you with mentorship if you need.
What is Amazon’s FBA Revenue Calculator?
The Revenue Calculator is used to calculate the fees associated with selling on Amazon when using FBA ( fulfilled by amazon ) or FBM ( fulfilled by merchant )
It will give you a break down of the following fees :
- Selling on Amazon Fees
- Referral Fee – this is what Amazon charges to for selling on the platform. In other words, “bringing” you the customers
- Variable Closing Fee – this is only charged when selling media items such as cds, dvds, books, etc.. and varies from product to product
- Amazon Fulfillment Fees
- Monthly Storage – if you’re selling FBA, you will have to pay a fee every month to store your products in the warehouses
- Fulfillment Fee – this is also when selling FBA, and is for Amazon handling the picking, packing, handling of the product along with the customer service, returns, refunds, etc…
You can enter any product name, UPC, ASIN, and other identifiers into the search bar to pull back the product you are looking for
The easiest, most direct method is to copy and paste the ASIN from the product information section of the listing :
** Make sure you are using a comparable product to run your numbers **
( similar dimensions and weight )
You can then input the following info :
- FBA or FBM
- Selling Price
- Shipping into Amazon Cost
- Cost of Product
- Shipping Charged to Customer – use this if FBM
- Cost of Fulfillment – shipping materials, cost of shipping to customer, customer service, labor, etc… ( use this if FBM )
Once you have filled in the info for the product you’re looking into it will calculate out all of the following fees and profit:
- Selling on Amazon Fee’s
- Referral Fee – the fee charged for selling on Amazon or what Amazon charges you for “bringing” you the customers
- Variable Closing Fee – this is just charged when selling media items such as dvds, cds, books, etc… and is different for each product
- Amazon Fulfillment Fee’s
- Monthly Storage – if you are FBA, this is the fee Amazon charges to hold your products at their warehouses
- Fulfillment Fee – again if you are FBA, this is the fee they charge to pick, pack, handle your product and provide the customer service
- Net Profitability
- Net Profit – the dollar amount of profit you will make after the Amazon fees
- Net Margin – the percentage of profit out of the total revenue of your product
Here is a quick break down of the fees and profit :
There are also other options like chrome extensions that will calculate all the fees and profit directly on the Amazon listing
One chrome extension is the AMZ Scout Profit Calculator :
Will Amazon FBA still be profitable in 2020?
Yes, but the same strategies that worked in the past don’t necessarily work today, and the strategies that work today may not work in 2020.
Retail and online arbitrage are only a shell of what they used to be, as you can not use retail or online receipts as proof that your products are legitimate. Therefore, you run a high risk of suspension when pursuing either of these two strategies.
Buying wholesale and reselling is much more challenging than it used to be, both due to Amazon buying a larger number of products directly, and manufacturers either selling directly on the platform themselves, or limiting themselves to 1 to 2 sellers maximum. In my experience, this has been the case even if you own a brick-and-mortar store – it’s no longer as easy as applying for a wholesale account and buying up their profitable products.
Private label is still in my opinion the easiest to scale, but just about every product imaginable has been flooded with private label sellers. Advertising costs have gone up and as a whole, just about every market is saturated.
The best sellers today have a unique product that requires more than simply contacting a factory on Alibaba to manufacture, and they also have real marketing skills outside of Amazon’s ecosystem.
The higher barrier-to-entry with your product and strategy, the better you’ll do on Amazon. The customer-base is there, so it’s all a matter of having a quality product that’s in-demand, and actually having it seen by those customers.
What is Amazon FBA Export?
Amazon FBA Export means that your product will be eligible to ship internationally. Buyers will have to pay extra charges for shipping which includes duties and some other charges.
Amazon FBA export program also helps in increasing sales. Obviously now your product is available to international buyers.
How to enroll in FBA Export Program?
Step: 1 – Click on settings in top right corner.
Step: 2 – Fulfillment by Amazon.
Step: 3 – Enable FBA Export Program
This may take up to 48 hours to get approved.