Are you selling via Amazon FBA (Fulfillment by Amazon)? Confused about how the calculator provided by Amazon works? Fear no more – we have a concise, visual explanation here.
1. Enter an item in the “find your product” search bar. Just your item by name; items on Amazon will then show up. Select your intended item.
You’ll end up at this interface.
2. You’ll see two columns; one says “your fulfillment”, and the other says “Amazon fulfillment”. What’s confusing about this tool is the fact that the two columns do not interact with each other whatsoever. “Your fulfillment” is the column that describes what it would be like if you fulfilled the product yourself (i.e. ship it out to the customer). “Amazon fulfillment” is what it would be like if you shipped it to Amazon, and Amazon just takes care of all the shipping and storage for you (hence “Fulfillment by Amazon”).
To find out how much Amazon FBA costs for your item, enter the price you want to sell the item for in the box corresponding to “Item Price”
(It’s the one on the top-right corner.)
3. Take a look at the bottom, where this is shown:
Ignore the left column; we’re only interested in the right, as we’re selling via fulfillment by Amazon. The number corresponding to “Fulfillment Cost Subtotal” is the cost of Amazon storage/shipping fees; the “Cost Subtotal” is that cost, plus the commission that Amazon takes in the “Cost” section a few lines above.
The fee for Amazon FBA is the cost subtotal.
What you’re left with is the line below, the “marginal impact”, which is how much you (the seller) earns on selling your product.
4. Is the cost subtotal/fee always going to be -4.79?
Nope. It’s going to be a little different depending on the dimensions of your item. What we have here as an example is a book; other products might be a little different.
Happy calculating! You can find the calculator here: https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US.
This is one of the posts in our “answering simple FBA questions” thread, where we answer questions that are frequently googled in concise, straight-forward responses.