By Christine | 10 April 2019 | 0 Comments
How should amazon seller calculate FBA cost by themselves

How should amazon seller calculate FBA cost by themselves? (including calculation formula)
Many FBA sellers know that amazon will deduct certain expenses, but they know very little about the specific details. Each time they read the statement, they also don't know exactly how to deduct the expenses. They only see that the cost of FBA is getting higher and higher. Only by knowing the detailed deduction link of FBA, we can reasonably plan the inventory and effectively control the cost.

So how should the seller calculate the cost of FBA?
In order to correctly calculate the cost of FBA, it is necessary to understand the cost composition of FBA products, FBS storage fees, inventory removal costs, and other costs of FBA.

Cost composition of FBA products

1.(item cost +freight)
Formula :(purchase price + first trip +2 yuan order processing fee)/exchange rate
The initial process of a single product is amortized by sku
For example
: the purchase price of product A is 20, the purchase price of product B is 15. 20 product A, 30 product B. The total freight cost is 900RMB.
Amortized according to a single SKU: 900/50=18

Thus: product cost of A = (20+18+2) /6.88=$5.81

2. Amazon FBA fee

If you have already sent FBA, then you can see the freight expense of amazon by managing inventory in the background of the system, or you can check the FBA expense table.

Commission=selling price*0.15
The money we get from selling a product is deducted from the part that amazon takes away, and the rest is the part that we can mention the P card, which is the part that needs to calculate the withdrawal fee.
Selling price = minimum cost =(purchase price + freight cost +2 yuan order processing fee)/exchange rate+Amazon commission+P card withdrawal fee
=(purchase price + freight cost + packaging fee)/exchange rate+selling price*0.15+(selling price-selling price*0.15)*0.03
=(purchase price + freight cost + packaging fee)/exchange rate+selling price*0.15+0.85*0.03
=(purchase price + freight cost + packaging fee)/exchange rate+selling price*0.1755

( fee for cash withdrawal)
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Cost composition of FBA products
 FBA storage fee
1. Monthly storage fee
The storage fee is based on the daily volume (in cubic feet) of your inventory in the amazon operations center. The volume is measured based on the size of goods that have been properly packed and ready for delivery in accordance with amazon's logistics policies and requirements
Amazon reserves the right to calculate the volume or weight of all packaged goods or representative samples in its own way. In case of any conflict with the information provided by the seller, amazon's measurement results shall prevail.

Monthly storage fee
Amazon typically collects last month's storage fees between the 7th and 15th of the following month. For example, to view the January warehousing fee, refer to the February payment report, which contains transaction information from February 7th to 15th.

2. Long-term storage fee

Overstocking or indefinite storage in our operations centers will limit the space we have to store popular items. Long-term storage fees help ensure that we continue to provide high quality service to all sellers and provide buyers with the goods they want.
Since the new policy came out, amazon has been collecting long-term storage fees every month:
U.S. FBA inventory ages 181 to 365 days will incur a long-term storage fee of $3.45 per cubic foot (LTSF).

Items that are more than 365 days old will cost $6.90 per cubic foot for long-term storage.

Cost composition of FBA products
 Inventory removal cost
1.Inventory allocation service fee

2.Amazon logistics order removal fee


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