■ How to calculate Amazon revenue? ■
Amazon Business Net Profit =
Amazon Sales
- Amazon Fees
- Amazon Advertising and Promotion Costs (Marketing Expenses such as Facebook, Instagram)
- Product Transport Costs to FBA Warehouse
- Management Costs (Cost of Sales, Labor Costs)
Here, Amazon fees are paid according to the standards set by Amazon, so you cannot adjust them. You can avoid unnecessary spending by looking at the Amazon fee details and ensuring there are no leaks.
In order to pay only the fees you must pay and increase your profits, it is essential to review the Amazon fees carefully.
■ What are Amazon fees? ■
There are several categories of Amazon fees, and the main ones are as follows.
Amazon Referral Fee
A fee for introducing your product to consumers through Amazon.
The percentage varies depending on the product category, but it is usually around 8–12%.
Amazon FBA Fees
Most companies that export their products through Amazon will use Amazon FBA to store and ship their products.
There is also a fee to use FBA.
You can think of it as the cost of using the warehouse and the labor costs required for product packing and delivery.
It depends on the weight and volume of the product.
Amazon Long-Term Storage Fees
Amazon also charges an additional fee for products that remain in the warehouse for a long time due to poor sales.
By disposing of unsold products wisely, you can avoid long-term inventory fees.
If you are selling only one or two products on Amazon, it is not difficult to check the commission, but the more products you sell and the larger the sales volume, the more complicated it is to calculate the commission.
You might think you completely understand the commission if you are a company operating a large Amazon business.
In fact, it is difficult to find an Amazon business operator who knows precisely what Amazon commission is because there are many variables such as sales volume, inventory, Amazon policy, and exchange rate.
If you add other fees, such as advertising fees and promotions, to calculate Amazon expenses, it takes more time to itemize the amount you pay to Amazon.
■ How to fully understand Amazon fees■
It is a time-consuming data management task to check each item and calculate how much the fee is deducted.
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