KNOW your Profit Margins! Amazon FBA Calculator Explained
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- Опубликовано: 14 май 2024
- Are you considering selling on Amazon but aren't sure how much profit you can make? Jungle Scout has got you covered! In this video, we'll show you how to use the Amazon FBA Revenue Calculator to calculate the potential profitability of your product idea.
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The Amazon FBA Calculator is an essential tool for any beginner seller who wants to know how much fees they can expect to pay and how much they can potentially make. By using this calculator, you can estimate your Amazon profit margin and determine whether your product idea is worth pursuing.
Our video tutorial will walk you through the step-by-step process of using the Amazon FBA Calculator, so you can make informed decisions about your business. We'll show you how to input data such as product cost, shipping fees, and Amazon fees to calculate your potential profits.
So if you want to learn how to calculate Amazon profits and make the most of your product ideas, be sure to check out this video from Jungle Scout. Whether you're a seasoned seller or just starting out, this tutorial will help you take your Amazon business to the next level.
… Remember to bookmark this video so you can always come back and jump right into any section by selecting a timestamp below ⬇️
0:00 Using Amazon's revenue calculator
1:14 Step-by-step guide to using the calculator
1:37 Calculate your potential item price
3:11 Calculating Amazon fees
3:52 Calculating fulfillment fees for FBA
4:10 Calculating fulfillment fees for FBM
6:48 Using the FBA vs FBM comparison chart
8:05 Calculating shipping costs
8:38 Calculating costs of goods sold
9:20 What is a healthy net margin?
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I love you guys content and the help you provide with understanding this business... thank you for your time, effort, and consistency. You are truly appreciated..
Sincerely, The community.
Thank you! 🧡
thank you so much for this video much love jungle scout
It's our pleasure! Glad you liked it! 😍
hi thanks for nice info,, i want to ask you which software do you use to edit lectures thanks
excellent video
Nice content !!
Hey! Thanks so much, glad you enjoyed the content! 🙂
Hi big fan 😊
Fire video!
Thanks, Leon! 🔥
Thanks for a good video but what rules should we consider for estimating PPC Costs to include in our total costs. PPC costs would greatly affect those margins and in fact, I am in the red due to these costs after considering the rule of thirds. Appreciate your help.
Hi! Ideally, you'll want to include it in the cost 1/3. To do that, use our Keyword tool to estimate PPC costs.
Hello, very nice and clear video. However, how do I proceed if I want to know my profit margin on a bundle that contains several different products ? Because I don't know what I am supposed to fill in the "Package dimensions" boxes.
The package dimension refers to the size of the box, pouch, or parcel that your item will be shipped in.
@@junglescout Okay makes sense, thank you :)
Hi @Jungle Scout
To clarify the cost of goods sold I need to put the price of the Alibaba Product + shipping = would that sum be the value?
That's right! The cost of goods should be the total cost of acquiring your product
What I was doing was putting it separately in cost of good sold I put the price of the Alibaba supplier and in estimated Shipping cost I put what the shipping cost per unit (towards the account by dividing the shipping value from the Alibaba supplier by the units )
Now I know I have to add it up and put that result directly into Coast of Goods, is that correct?
Another question is it correct to choose "Amazon optimized shipping splits" to have a more real value? Because when I create the shipping plan, Amazon sends my products to different warehouses.
Many thanks for your help and clarify!
Correct! You need to add all the shipping and manufacturing costs when calculating the Cost of Goods.
When it comes to shipping your product, you should be able to consolidate the shipment so that all the products are send to a single warehouse
@@junglescout I'm sorry to ask this again, but I want to make sure I'm doing this correctly.
When you said add all shipping and manufacturing cost, do I use the value all together (product+shipping) in "Goods Cost" or each value separately in "Cost of goods" and "Estimated shipping cost"? selecting Amazon optimized shipment splits.
I will use as an example:
Item price $6.5
A product whose cost is $0.42
$0.28 per unit and shipping from Alibaba is $0.14 per unit
Scenario 1: In the calculator I am going to calculate it separately "Cost of goods" and "Estimated shipping cost" and it gives me:
NET PROFIT IS $1.66
NET MARGIN 25.49%
Scenario 2: In the calculator I am going to calculate everything together for the cost of the product $0.42 in "Cost of goods" and it gives me:
NET PROFIT $2.08
NET MARGIN 31.96%
The variation is 6.47% and can affect decision-making. A product that leaves me above 30% is not the same as one that is below apliying rule of thirds.
What is the scenario that I really should take when calculating the products?
Hi, for products under 35 usd... do we have to pay fba shipping fees? or the customer does? as the fba calculator tells you that we have to pay and amazon doesnt say anything
Please help me i am current subscriptor of jougle scout software
The FBA fees are mandatory if you are doing FBA, regardless of the cost of your product. It is based on the weight and dimensions of your product. You can check out our article here www.junglescout.com/blog/amazon-fba-fees/
Hi, when will jungle scout come to Australia?
Jungle Scout supports the Australia marketplace; however, we are limited to seller features now. You can access the Supplier Tracker, Review Automation, Sales Analytics, and Manage Products.
We are not yet set up for product research this time for other marketplaces. Every marketplace behaves differently, so we need to develop algorithms for each store and category and consider specific sales velocity.
Thanks so much for this. But why are you putting that huge shipping cost for the sellers expense when Amazon covers it with the Fulfilment fee already counted in? The fulfilment fee should cover all of the shipping and everything else, so why add it as an extra expense on our end?
We were adding the shipping costs for the FBM orders, not FBA 😉
@@junglescout Ah! Makes sense. Thanks :)
🧡
Thanks but Where is the cost of purchase of the item? As in my cost to purchase the item before I sell on Amazon?
You can determine your COGS or Cost of Goods Sold once you have an official quote from your supplier and the shipping quote. You can enter that under "Other Cost" in the Amazon Revenue Calculator.
When trying to reach the 33% profit. Do you guys consider advertising costs in this formula or is this evaluation just strictly the cost of Goods & Shipping only?
It is good if the Advertising cost is already included, but generally, in the beginning, while in the product research phase, we are just including the landed costs.
@@junglescout Got it! Thx
Is this OA or private labeling
so if you use Amazon FBA, Amazon covers the shipping fee to the customer or will you still be charged the fee? Can someone please help me with this? Thank you!
Amazon covers it!
Supposed you list a product on amazon at $20 FBA and when a customer buy it the product so they will pay $20+$6 (shipping cost). My question is Amazon will deducted the shipping fees from customer($6) or will charged seller from$20 ? As the customer pay $6 for shipping too. Please explain to me. thanks
For FBA, sellers do not have to pay for shipping, handling, or packaging. It is already covered by the FBA seller fees deducted from you. Shipping fees are shouldered by the buyer and are remitted to Amazon.
@@junglescout thank you so much
You are always welcome! 😊
Hi, if I buy a product in a wholesale, I enter the net price of the product into the calculator, right?
You may edit the item price on the calculator.
@@junglescout I meant do I enter the wholesale price net or gross into the calculator?
You should enter the actual price of what you paid for the product and add the other cost to misc.
Hi, you forgot PPC advertising costs - which would then impact the $11 net profit greatly !
Not to mention VAT 😂😂😂
Hey @JungleScout quick question. In the video when you reach the 33% margin your net profit is $11.00 but your cost of goods is $11.38. Doesn't that mean you're really losing $0.38 per item sold? If not, can you clarify why?
Thanks for getting back to us about this, Net profit means that this is your take home pay after all the expensed and FBA fees including the COGS.
@@junglescout so if I understand correctly, in the example of the video you'd be earning $11 on top of all the costs INCLUDING the COGS. So, to put it in other words, the money amazon will pay you back will be enough to re-purchase another item of $11.38 (cost) and you'll still have $11 left as earnings.
Sorry if this is a silly question, just want to make sure I understand and don't mess up on my first purchase.
That's correct. Amazon will release the total amount of your products minus all the Amazon fees. This means you'll receive the profit plus COGs you added (as part of the total pricing).
Why is estimated fee per sold item so high? I just made shipment plan
I suggest using the Amazon revenue Calculator to double-check the Seller Fees.
oh je viens de trouver la fonction dans les paramètres ....désolée je débute
Is this OA or private labeling?
This is for Private Label.
i cant find the filter option, where is it ?
Are you referring to the "Filter Results" option on the Extension? If this is missing on your end, you can try to uninstall and reinstall the Extension.
@@junglescout yes, I’m still waiting for my application on Amazon seller, I’m not sure if is bc of that or I can use the filter results without the Amazon seller ( still waiting to be verified) thanks
Please note that the filter for Seller type is not for 'user' but for 'products'. So if you choose the FBA/FBM filter in the Extension, it will only show you products where the Buy Box owner is either the FBA or FBM seller. If you choose Amazon, then it will display listings where Amazon owns the Buy Box. Hope this makes sense!
The profit things still confuses me. To me it seems like you spent $11.38 and only getting back $11.00. Am I seeing this the wrong way? Please help
You need to add all the expenses to come up with the amount.
como desbloquear conta na amazon?
Você poderia nos informar por que sua conta foi desativada?
Why do not adding ‘Ship to AMZ’ fee for FBA?
I believe that the shipping going to the FBA warehouse should be incorporated with the COGS.
@@junglescout what do you mean by COGS?
COGS is the Cost of Goods Sold. It is the cost of procuring/sourcing the product you wish to sell on Amazon.
I wanted to sale in amazon .can you teah me how i start?
You can check out our How to Sell on Amazon video here! ruclips.net/video/Id8yj5lKaho/видео.html
@@junglescout do you have email adress .please share your email adress
Sure! You can contact us at support@junglescout.com.
Great but please , subtitles in French ?
Isn't "Net" profit in this context a bit misleading? Wouldn't pre-marketing/tax profit be a more accurate way to describe the margin from this calculator? It leaves out two of the highest expenses for an Amazon seller: Marketing and Taxes. The taxes may cost more than the product itself if you are paying 30-37% in self employment income tax on your profits. Net Profit should be the money that hits your bank account at the end of the fiscal year.
Marketing should have its own line in the calculator. If you don't know how much marketing cost you can tolerate, your entire business can go to zero in the span of 2-3 months and you lose everything.
Thanks for the feedback! Marketing expenses, Taxes, and other costs can also be accounted towards your Net Profit calculations. You can add this to your "unit costs" or "miscellaneous cost" on the Amazon Revenue Calculator. sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US
This is all a perfect scenario sadly. Think if you wanna sell buckets... Amazon will charge you as if every single bucket is full and cannot be stacked into itself. Flat out robbery.
Is this private label he’s showing?
Why so cute? ❤
How do you estimate the shipping fee per item, from supplier to Amazon warehouse?
You can get quotes from suppliers or freight forwarding companies. It will depend on the type of transportation as well as the weight and dimensions of the final package.
Thank you so much@@junglescout
😍
33% cogs
33% amaozn fees%
33 profits
0% PPC
0% TAX
Perfect 🤩