Calculate costs and compare your options to Fulfillment by Amazon.
Making sales projections can be stressful, but sales estimators and profit calculators can help remove some of the guesswork. In this post, we’ll cover what the FBA Revenue Calculator is and how to use it to make decisions about fulfillment methods, product selection, pricing adjustments, and other strategies that can impact your bottom line.
What is the FBA Revenue Calculator?
The FBA Revenue Calculator is an ecommerce tool that Amazon sellers can use to preview what estimated net proceeds might look like if they tried Fulfillment by Amazon, chose a different fulfillment option, started selling a different product, or sold in additional Amazon stores.
You can use the Amazon FBA calculator to estimate net profits and margins for:
- Products you already sell in Amazon stores
- Other products in the Amazon catalog
- Items not yet listed in the Amazon store (enter product information to define a unique offer)
The profit calculator generates side-by-side comparisons for various fulfillment options, whether you store, pack, and ship orders yourself, or use a service like FBA. Play around with different numbers for factors like sales price and costs for storage, shipping, and fulfillment. The calculator will then give you estimates depending on what stores you want to sell in.
The calculator also allows you to explore costs you might encounter along the way as you procure and store products, manage inventory, and process orders. You can hover over a fee type in the FBA calculator to learn more about it.
The calculator takes into account common fees like referral fees, fulfillment costs, monthly storage costs, and variable closing fees. Other types of expenses, such as long-term storage costs, removal order costs, and return processing costs, aren’t built into the calculator, but you can use the “Miscellaneous cost” field to add them, if they’re relevant for your business.
Is the FBA Revenue Calculator free?
The Amazon FBA Revenue Calculator is free to use. You can also access it within Seller Central if you enroll to sell using either an Individual or Professional selling plan. The Individual plan is $0.99 per item sold plus additional selling fees. The Professional plan is $39.99 per month plus additional selling fees.
What about those additional expenses? They could include category fees, fulfillment costs, and inventory costs, depending on the types of products you want to sell, size and weight of products, and how much storage space you’ll require. Learn more about potential costs and fees.
How to use the Amazon FBA Revenue Calculator: 3 steps
Step 1. Add product information
Select the “Search Amazon Catalog” tab to search for products already listed in Amazon stores. You can search by SKU, title, ISBN, UPC, EAN, or ASIN. For a product not currently listed in your catalog or the Amazon catalog, select the “Define product” tab, and enter product information, such as package dimensions and the product category.
ASIN stands for Amazon Standard Identification Number. An ASIN is a unique identifier for a single item in the Amazon product catalog.
Step 2. Estimate costs and fees
Choose the Amazon store where you plan to sell the product. To start comparing, complete the fields in the ‘Amazon fulfillment’ and ‘Your fulfillment’ columns. For Fulfillment by Amazon estimates, factor in:
- Product sale price
- Estimated average number of units you plan to store each month
- Estimated monthly units sold
- Cost of goods
- Any other costs and fees you plan to incur
Under “Your fulfillment,” enter the product’s sales price and shipping charge to the customer, costs associated with your fulfillment and storage, cost of goods, and any other costs associated with your fulfillment.
Hit “Estimate” to see your net profit and margin previews for each scenario.
Step 3. Compare your fulfillment options
The Revenue Calculator has a third column you can use to compare another fulfillment scenario by entering different prices or cost estimates. Select ‘X’ next to the program name at the top of the column and pick any program from the options displayed.
With this, you can estimate the profitability of a program, compare different program estimates side-by-side, or compare the same program with different cost inputs and prices.
Try out different estimates to explore profitability for each fulfillment type and see whether the numbers might change if you tried selling in a different Amazon store, such as the United States, Canada, United Kingdom, or Japan stores.
- Perform product research. As you analyze your competition, keep track of the upper and lower ranges of prices for similar products.
- Consider how a product adds value compared to other options out there. If it’s higher quality or solves a problem, customers might be willing to pay more.
- Would you sell more and boost your bottom line if you brought down the price of an item? Use a tool like Product Opportunity Explorer to study price trends, along with resources like Amazon Brand Analytics to get insights into customer behavior and purchase patterns.
Is FBA really profitable?
FBA can be very profitable. Shipping with FBA costs 30% less per unit on average than standard shipping options offered by major U.S. carriers and 70% less per unit than premium options comparable to FBA. The program is also part of the New Seller Guide for increasing sales in your first 90 days of selling in Amazon stores.
Whether or not FBA will be a profitable fulfillment method for your business can depend on your ecommerce model, goals, and other factors. Explore your fulfillment options to decide whether to try FBA, fulfill orders on your own (Merchant Fulfillment or FBM), or use a combination (multi-channel fulfillment).
Which fulfillment method is best for your business?
Whether you want to use FBA, FBM, or another option for getting orders to customers, the FBA Revenue Calculator is one way to estimate potential costs and profits, which can factor into your decision making process.
With the right products, pricing, and logistics, it’s possible to reach your intended audience, streamline operations, and scale with infrastructure. Explore global growth opportunities in Amazon stores and get support for building your brand.