FBA Revenue Formula:
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FBA (Fulfillment By Amazon) Revenue is the net profit you earn after deducting Amazon's fees and your product costs from the selling price. It's a crucial metric for Amazon sellers to understand their true profitability.
The calculator uses the FBA Revenue formula:
Where:
Explanation: This calculation shows your actual profit after accounting for all Amazon-related fees and your product costs.
Details: Understanding your true FBA revenue helps in pricing strategy, product selection, and overall business profitability analysis. Many sellers mistakenly look only at gross sales without considering all fees.
Tips: Enter your product's selling price, all FBA fees (including referral fees), and your total product costs. Use accurate numbers for meaningful results.
Q1: What's included in FBA Fees?
A: This includes fulfillment fees, storage fees, referral fees (typically 15%), and any other Amazon service fees.
Q2: What costs should I include?
A: Include product manufacturing, shipping to Amazon, packaging, labeling, and any other direct costs.
Q3: How accurate is this calculator?
A: It provides a basic estimate. For precise calculations, use Amazon's Fee Calculator and include all possible costs.
Q4: What's a good FBA Revenue margin?
A: Typically 20-30% is considered good, but this varies by product category and business model.
Q5: Should I include advertising costs?
A: For complete profitability analysis, yes. However, this calculator focuses on basic FBA revenue before marketing expenses.