FBA is a popular choice for merchants. preferred method of the fulfillment of Amazon orders. It is because sellers are able to make use of Amazon fulfillment centers to keep inventory, and Amazon is the one responsible to pick up, package, and shipping steps that make up the process of multi-channel fulfillment.
While FBA may help Amazon sellers to simplify their online shipping processes, the cost for this service could be difficult, fluctuating, and costly.
Different types of Amazon fulfillment methods
If you are selling on Amazon You have three fulfillment options to pick from:
- Fulfillment by Amazon (FBA): Seller delivers inventory to Amazon and Amazon fulfills orders on the seller’s behalf.
- Fulfillment By Merchant (Amazon FBM): Sellers ship their own items directly to customers following receipt of purchases from Amazon.
- Seller Fulfilled Prime (SFP): Seller delivers their own goods directly to consumers in accordance with Amazon Prime’s strict delivery standard.
How do you determine Amazon FBA seller fees?
If you are selling something through Amazon via the Professional plan and Amazon’s seller referral fee comprises 15% of the selling price.
If, for instance, your product is sold at 100 dollars, Amazon takes a 15% cut of the sale and leaves you with $85 in earnings prior to any additional charges.
Are you putting money on the table, or even losing money through selling and shipping with Amazon FBA?
No matter if you’re launching a new product or are an established FBA seller, ensure you conduct the proper analysis and calculations for every product you offer.
This includes taking into consideration all the above-mentioned fees as well as production costs, order revenue platform expenses, and many other costs.
Because FBA charges are so varying If you don’t keep on top of the amount you’re spending on Amazon it’s possible that your profit is lower than you expected, or you’re barely breaking even.
SellerApp has created the Amazon FBA Calculator to let you know the amount you’re spending on Amazon FBA.
Here are some instructions on how to make use of it.
1. Input your order and product details.
Input the following information:
- The number of orders each month
- The number of items ordered
- Average sale price per item
- Average production cost per item
- Dimensions and weight of the average item
2. Find out the cost of your FBA costs
After entering the data above, you’ll be able to see the cost per month for Amazon FBA.
3. Re-examine your monthly cost and profits breakdowns
Then, you’ll be able to get a complete breakdown of each line item that is charged according to the information about the product and order that you input above.
This breakdown could provide insight into the areas where switching into one eCommerce system and handling shipping with ShipBob will save you the most in the fulfillment and storage of the inventory process.
Recommended Guide: Amazon Seller Account Checklist.
4. Get a quote through an FBA alternative
For instance, ShipBob is a 3PL that can boost the sales of your eCommerce site by offering affordable two-day shipping.
ShipBob provides fulfillment by Merchant (FBM) and, if you are using Amazon fulfillment We suggest expanding choices for your fulfillment (e.g. utilize FBM and FBA or FBM) to increase the number of sales.