How to Calculate Profit as Amazon Seller
As Amazon Seller you have to calculate net profit of your product to make inform decision, whether you should sell particulate product on amazon or not and how much profit you can make after selling on amazon this product.
This is fundamental question every online seller should ask before start to sell on amazon or any other marketplace like meesho or flipkart.
To make simple this process to calculate amazon Referrar or Commission Fees, Fixed Closing Fees, Shipping Fees and Net Profit, we make Amazon Seller Profit Calculator in Excel Sheet.
Amazon Settlement = Selling Price - Shipping Charge - Commission - Fixed Closing Fees
Net Profit = Amazon Settlement - Product Cost - GST - Packaging & Stationary Cost
How to Calculate Referral Fees
Total Referral Fees = Item price x Referral Fee percentage
e.g. if you are selling a Book at ₹ 450, referral fee percentage is 4%, so Referral Fees = ₹ 450 x 4% = ₹ 18
How to Calculate Closing Fee (based on Price)
Closing Fee is charged every time your product is sold on Amazon based on the price range of the product. This fee also varies based on the fulfillment channel you are using.
How to Calculate Closing Fees:
Calculate FBA Closing Fees
Total Closing Fees = Fees based on item price & category
Example 1: if you are selling Books at ₹ 200 (Books category is in ₹0-250 exception list), closing fees = ₹ 12
Example 2: If you are selling Speaker at ₹ 450 (Speaker category is not in ₹251-500 exception list), closing fees = ₹ 20
Calculate Easy Ship & Self Ship Closing Fees
Total Closing Fees = Fees based on item price
Example 1: if you are selling Books at ₹ 200 shipped with Easy Ship, closing fees = ₹ 5
Example 2: If you are selling Speaker at ₹ 450 through Self ship, closing fees = ₹ 20
How to Calculate Shipping Fee
If you use Easy Ship or Fulfillment by Amazon (FBA), Amazon will deliver your products to the customer and charge you a fee. (If you are choosing to Self-Ship, you will have to bear the cost of shipping and deliver through 3rd party courier service/own delivery agents).
Different fee rates are applicable based on distance.
- Local rate will be applicable where the pickup and delivery happen in the same city i.e. intra-city pickup and delivery.
- Regional zone consists of four regions. Regional rate will apply if shipment moves within the same region and the service is not within the same city.
- National rate will apply if shipment moves across regions.
Amazon Payment Cycle for Seller
You are eligible to get paid for the order 7 days after the order is delivered.
Amazon ensures payment for your sales (minus the Amazon Seller fees) is deposited securely into your bank account every 7 days, including your Pay on Delivery orders. Eligible sellers will also receive options for faster payment cycles.