How to Accurately Calculate Amazon FBA Fees

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Thanks, Josh. This is the unknown question I had when sourcing. This information you just gave me will help immensely as I'm sourcing.

tmitchellw
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Hi Josh,

That was a great explanation on how to use that Amazon tool. I have always just used the help file to locate the selling fees (search for "Fulfillment fees for orders on Amazon.com"). Armed with the latest fee schedule, I enter the applicable fees into a profitability spreadsheet I created for the product I'm researching. In addition to Amazon's transaction and storage fees, I also bake in a 10-15% advertising cost, the cost to have the product shipped to me from the manufacturer, and the cost to ship the product in to Amazon's warehouse. I have to account for these costs when calculating profitability because if the margins are tight, I might actually be taking a loss just by advertising. Without advertisement, your product will be buried under a sea of similar products and never be found by the consumer.

Just wanted to share that in case anyone is just starting out and is trying a product with very tight margins.

Here's to the journey!
Ree

ReeKlein
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Excellent & simple demonstration.Thanks a lot.

shanthaprabahar
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This is very helpful, I do have a question
- Do the FBA fees include the cost it takes to ship the item since free shipping is provided to the customer?that 10$ leftover in the video after fees is your profit, so if you take that 10$ and subtract the cost to make and ship that product to Amazon, then that is your net?

phantom
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Does the calculator also include the cost to ship to book into FBA? Or would I need to add that in somehow?

ameliazanes
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Does the fee calculator include the shipping cost of sending your product to the Amazon fufillment warehouse? Or is that an additional fee on top?

ryanmaes
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so say for example with these example you sell it for $15 and you left with $10.99 or $11 if you round it up than if you product cost around $5/unit that means $11 - $5 = $6 am i right?. We should also factor the shipping cost from China and third party fulfillment like FBA Forward too am i right?. So i dont understand how people can make a profit like these?

TheAngelicSeraphimFarron
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josh... at the end of this video you are @ 10.90 for the baking mat. now you subtract the product cost and inbound shipping to Amazon or was that included as part of the FBA calculations?

robertsherman
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what about the paypal fee ? its not included right ?

hmttraderz
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Is shipping weight and dimension once the Item is packed and ready to ship or is it just the item it self?

princesscakes
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hey Josh Amazon takes 18% commission on each sale is that right? And when you did the FBA calculation is that included in there or do you have to pay that commission on top of the FBA fees as well? Thanks Jerry. I may not see your post on here could you possibly email me this answer. Thank you

WhitetailWeekendWarriors
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Another helpful video.  But the inbound shipping cost is also going to cut into your net income.

tinfoilcap
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so what exactly does the Amazon seller app do then?

bristolgirl
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Does Amazon charges you to keep the products on their storage?

JavierCabreraBrothers
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Maybe a silly question but dont Amazon FBA charge for sending the product out to the customer? I cant see anything relating to their postage cost which im sure they would deduct from the item price?

andrewjones
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Do helpfull.... Thank you. very clear accurate info..!

shirleyztv
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Where is the cost of sending it to the amazon warehouse? How much does that eat your profit?

photograffito
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AWSOME VIDEO, AFTER WATCHING ALOT OF VIDEOS, SUNDS LIKE YOU KNOW WHAT YOU TALKING ABOUT, THIS INCLUDE AMAZON SHIPPING THE PRODUCT OUT RIGHT?

Ntuthuko
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i JUST NEED A SIMPLE SPREADSHEET FORMULA FOR FBM.

Chicago
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Thank you! Wish I had seen this before my first shipment. At least now I know what to do on the next one. My items are selling like crazy as I watch the fees eat up all my profits.  :O

christinamattson