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Clarity

Anna Davidson Thawe

West Midlands, UK

eCommerce & Digital Marketing Expert, Author, Mumpreneur Founder at 6 Figure Amazon System & Coach at ImportXperts. Importing From China, Amazon, Building Brands, Shopify. I have built multiple brands from scratch With 10+ years of online marketing experience, I have a knack for being able to rank quickly on Amazon and outsmarting the competition. I have taught over 1000 students build successful businesses through on and offline training programs, I have a passion for branding and turning seemingly ordinary products into unique lines. If you want to learn how to rank quickly on Amazon or drive traffic through Facebook & Instagram to your own eCommerce site then book a call.

$3.33/min

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How to Calculate Your FBA Fees & Potential Profits

Follow this step by step guide to forecast your expenses and profits when using Amazon's FBA service

After you have worked out your landed costs you will want to work out how much profit is available when using FBA. This is something Lewis talks about at the end of the Research & Ordering video series - Calculations & Ordering which can be found here

1. It’s important to remember that there will be additional costs to prep the products ready for FBA. This will include: individual bags & labels and shipping costs to the Amazon FBA warehouse.

2. Research your target price on Amazon. In this example we will be using the Beard Shaping Tool

3. Use a FBA calculator

4. Enter the product search term

5. Select a product that matches yours

6. Make sure the dimensions and weight are similar to your product. This is so Amazon can work out the postage and pick & pack fees

7. Insert the Selling price & the unit cost. In this example we will take the landed cost and add a small amount for for FBA packing and shipping: £0.47 + £0.06 = £0.53. We will work out the figures based on a selling price of £7
In this particular case there is a potential margin of 61.86% giving a potential profit of £4.33 per unit.

NB - If you are not VAT registered you will need to add VAT to the FBA fees. In this example:

Amazon selling fee @ £1.05
FBA fee @ £1.09
Total £2.14
VAT @ 20% £0.43
Total Fees £2.57

Selling @ £7.00, product cost of £0.53, Amazon fees of £2.57 = £3.90 profit per unit with a margin of 55.7%

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Reviews 2

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Reviews

Lovely to work with and very knowledgable on Amazon and FBA advertising

Chelsea Davis Source: Clarity

Very knowledgeable with some great advice about my Amazon listings that have lost their rankings. Will definitely be booking a second call!

Herman reid Source: Clarity

Member since May 2018