Can we trust the Amazon Revenue Calculator tool?
Hello Guys,
Before putting a product on sale, we use the Revenue Calculator tool to find out the value of the FBA fees. That's exactly what I did. Trusting this tool, I bought the product from the supplier to sell for the first time on the Amazon platform, knowing that I would be charged approximately 5.65usd in FBA fees. To my surprise, after the shipment arrived at the fulfillment centers I realized that the amount that will be charged will be more than 11usd!!! How can I make a profit on this? Can anybody help me? In my opinion, Amazon should be responsible for the information provided!
Can we trust the Amazon Revenue Calculator tool?
Hello Guys,
Before putting a product on sale, we use the Revenue Calculator tool to find out the value of the FBA fees. That's exactly what I did. Trusting this tool, I bought the product from the supplier to sell for the first time on the Amazon platform, knowing that I would be charged approximately 5.65usd in FBA fees. To my surprise, after the shipment arrived at the fulfillment centers I realized that the amount that will be charged will be more than 11usd!!! How can I make a profit on this? Can anybody help me? In my opinion, Amazon should be responsible for the information provided!
0 respuestas
Seller_CF0URQS5DxG2u
i literally would never use that tool. not ever. Amazon does not need to know my expenses. that's a TON of free data they're harvesting from you, and clearly it didn't help you either.
there is a common misconception from new sellers: FBA fees are NOT the same as, nor are they included in the referral fee.
every sale (regardless of FBA or FBM) will have a referral fee. this is basically the fee Amazon charges for having the listing up. Every single sale has this fee.
Then there are FBA fees - these are the fees Amazon charges to store, pick, pack, and ship your items in their warehouse. only sales made via FBA have this fee.
when pricing, as a rule of thumb i calculate FBA fees + Referral fees will come to roughly 55% of the selling price.
as for profit: you are ultimately responsible for your pricing and your profitability.
amazon simply does not care about you or your profit margins.
in fact, a large part of their business model actively revolves around taking advantage of people like yourself who jump in without understanding what they are in for. your errors are quite profitable for them.
amazon is happy to hold out their open hands and drain you of every last penny until you are bankrupt.
if you can't make a profit on an $11 FBA fee (are you also including Landed Cost? storage costs? shipment to Amazon costs? etc?) then you must raise your prices to absorb those fees, or you must lower your costs to make the fees more palatable, or you must switch to FBM and ship items yourself - many of the longtime sellers on this forum swear by FBM and never use FBA due to the cost.
Seller_4zBzdtgCyS9EI
just to add to @Seller_CF0URQS5DxG2u
After all expenses, there are also insane customer return product expenses, freely given refunds to buyers, exceptionally insane cost to get your inventory back from 10+ warehouses all over the country at high cost and NOT to forget.....your inventory will be confiscated and destroyed if you get any IP violations you cannot fix. And you wont get refunded for lost inventory without proper authorized wholesaler invoices.