How to calculate exact profit margins using free Amazon FBA Calculator

A free video tutorial from Damir Šerbečić
Digital Marketing Specialist
Rating: 4.1 out of 5Instructor rating
7 courses
126,256 students
How to calculate exact profit margins using free Amazon FBA Calculator

Learn more from the full course

Amazon FBA as a Private Label Business Launching Platform

Learn how to sell on Amazon FBA. Find, launch and scale your own private label brands without touching inventory.

07:37:05 of on-demand video • Updated May 2022

Proven and tested ways to launch, sell and expand private label products
Spot a profitable product opportunity in growing market with strong demand
Sell in the United Stated and Canada no matter where you live in the world
Open a US checking account without travelling to the US or having a US company
Get paid by Amazon no matter where you live in the world
Find reliable suppliers overseas
Import products cost effectively to the United States
Best way to import products if you are not from the United States
CHECKLIST: What to ask suppliers
CHECKLIST: Due diligence - how to spot fraud suppliers
How to properly label your products and send to Amazon FBA warehouses
How to optimize Amazon product listings like big brands
Strategy for launching and continually marketing your brand, on and off Amazon
Increase social proof of your product listing and get 100% legitimate verified reviews
How to drive external sales and ultimately increase keyword rankings on Amazon
How to deal with negative reviews and unhappy customers
How to avoid getting your seller account suspended
PERSONAL SUPPORT: I will answer every question that you might have along the way and review your product listing with improvement suggestions
REGULAR ANNOUNCEMENTS with latest Amazon policy and guideline updates
And much more!
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Now before sourcing and sending your product to Amazon and B you need to calculate your exact profit margin and fees that you're going to pay to Amazon. Now like I said previously we have two groups of fees referral fee for selling the Amazon Marketplace and fulfillment fees for using Amazon's FBA service. Now both of these fees occur only when your product is sold. Now Amazon has created this free calculator that lets you calculate fees and margins for any product I have included the link in the research step. So first you need to select a product that is already sold on Amazon so Amazon can obtain details about product sizing and category in order to calculate the exact fees. So let's say we want to sell jump rope. We need to go to Amazon Dot Com and then simply find a product that we want to sell. Or if you're going to be selling your own private label brand then pick a product that is very similar to your future product. Once you've found a product simply click on it and open the product listing page and then copy the s.a.m number. So as our number can be found in the link up here just after the DP slash part then simply copy DSN number then head back to the calculator and simply paste the Aisleyne code here. Then Amazon will find a product that is associated with a specific esign number. So as you can see Amazon already has product dimensions and unit weighting formation. Now next you only need to enter the selling price down here and then hit calculate bottom. Now as you can see total fulfillment costs are displayed here and total referral fees for selling an Amazon Marketplace are displayed here. Now this is the amount per unit that Amazon will send to us for each unit sold. So this amount is the difference between selling price and FBA and marketplace fees. Also Amazon has long term storage fees which means that heavy storage fees per unit will increase if your inventory is in their fulfillment centers for longer than six months. Please see the link in the resource tab for more information. Now you can also add inbound shipping and preparation service cost per unit. In these two fields so let's say it cost us $200 to send 200 units to Amazon. We then the inbound shipping per unit is $1 and also lets say the labeling materials and the whole preparation service cost us point five dollars per unit than simply we need to recalculate the fees again. Now from this amount we need to deduct and cover cost of goods and that is how you calculate profit amount per unit.