When selecting products, we need to make a rough estimate of the product’s gross profit margin. After all, products with too low gross profit margins are worthless. The red line for Amazon product gross profit margins should be around 30%. If the gross profit margin is lower than 30%, it is recommended to abandon this product. So how should the gross profit margin be calculated?
Let’s take a look at the gross profit margin data calculation we did when we were doing product research.
In order to facilitate sellers to calculate the expected gross profit margin of products, here is a tool recommended to readers: FBA fee calculator. Just search “Amazon FBA Calculator” on Google. Remember to choose the official calculator to use. Third-party calculators may require payment.
After we log in to the main page of the FBA fee calculator, we can choose the country and site. If the seller is doing a US site, choose the United States. Then we find a product on the Amazon site that is similar in weight and size to the product we want to make, and enter the name of this product into the search box.
There are two options: one is the self-delivery mode, which requires the seller to be responsible for logistics and delivery; the other is the FBA mode, where the seller only needs to send the goods to the warehouse designated by Amazon, and then Amazon will help the seller deliver the goods to the consumer. After the seller has determined the delivery mode, he can fill in the corresponding parameters as required. After filling in, the FBA fee calculator will automatically calculate the profit margin of the product for the seller.
Another advantage of the FBA fee calculator is that it can help sellers automatically calculate Amazon’s delivery fees. Since Amazon’s delivery fees are calculated based on the size and weight of the product, as long as the seller ensures that the product size and weight selected in the first step are consistent with their own products, then the delivery fees calculated by the FBA fee calculator will definitely be accurate.