Kevin David has published an online article to serve as a beginner’s guide to using the Fba calculator. The serial entrepreneur and co-founder of Zonbase highlighted how using Amazon as a fulfillment model would be immensely beneficial to new sellers.
“With Amazon FBA, you do not have to worry about spending huge upfront costs on storage facilities and other resources for handling fulfillment. Amazon stores your inventory in their gigantic Fulfilment Centers. When a customer buys your product, Amazon will pack and ship the product to the customer. Amazon also provides customer support and processes any returns, refunds, or exchanges after the sale.”
However, as pointed out by Kevin David Scam, the fulfillment service rendered by Amazon comes at a cost. Sellers who choose to adopt this model will be required to pay FBA fees. And although Amazon provides a free calculator that helps sellers determine how much they would need to pay, many sellers do not know how to use the calculator effectively excellent, nor do they understand its amazing benefits.
More importantly, Kevin also explained that although the FBA service has its perks, it is not a one size fits all solution and might be a bad idea for some businesses and products. Using the Fba calculator, sellers have the opportunity to compare the costs of fulfilling orders themselves or through Fba before settling for the most cost-efficient option.
The Fba calculator estimates profit by taking into account referral fees - which is a percentage of the product’s total price, usually varying from 8% to 15% based on the product category, and variable closing fees - a fee of $1.80 Amazon charges on items in the Media Category, such as books, music, video games, software, etc. The online article further provides a step-by-step guide on how sellers can correctly and effectively use the Fba calculator for estimating the profitability of potential amazon products and fulfillment options.
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