Calculate your Amazon Business Margins Even Before you Sell!

Amazon FBA is among the most preferred fulfillment option for sellers in the marketplace. They get to benefit from Amazon's world-class logistics and infrastructure as it does the heavy work for them. Inventory storage, processing orders, shipping and delivery, Buy Box advantages, Prime eligibility, and providing customer service — these are just a few of the benefits that come with Amazon FBA. In return, Amazon will levy certain fees known as Amazon fulfillment fees.

If you are interested in growing your business without having to worry about logistics and delivery aspects, Amazon FBA is suitable for you. You can go about focussing on other critical areas that require your immediate attention while leaving the legwork to Amazon's capable shoulders. However, you must remember that Amazon FBA fees depend on the dimensions and weight of the product. Larger the product, the more you will have to pay in fees.

On the other hand, if you want more control over your business, then you may be better off with Amazon FBM. You get to improve your margins and save on fulfillment fees if you find a better logistics and delivery partner. On the flipside, it will require you to wear multiple hats, and amidst this, it can be a bit tricky initially to expand your business.

Needless to mention, the key here is to find an efficient logistics solutions provider who can streamline the process of shipping and delivery entirely, without burning a hole in your pockets. With FBM, you will also have to take care of providing customer service and processing returns and refunds, in addition to fulfilling your orders by yourself.

Additionally, the FBM model may also work well for you if you are selling products that are large and bulky. In many instances, instead of paying hefty Amazon FBA fees for large products, it is more than possible to cut down the costs by delivering the products by yourself.

Whatever may be the case, it is always better to calculate your potential profits with the help of our free FBA calculator for Amazon. This free tool can be used across multiple geographies and marketplaces like the United Kingdom, Australia, Europe, India, et cetera. The FBA prices will obviously vary from region to region but at the end of the day, they will depend on the dimensions and weight of your product. Calculate your potential profits beforehand to see if your products are a good fit for your FBA business. If your profit margins are too slim, look at acquiring the product for a cheaper cost or explore the FBM option.