For anyone taking their FBA business seriously, knowing all the costs that come in to play when selling on Amazon is essential. If you really want to squeeze every possible dollar and increase your profit margin, you need to know all the little variables that come into play when calculating the total cost of your product.
There is no question that Fulfillment By Amazon (FBA) has changed the lives of so many people. While Amazon takes care of packaging and shipping the seller is left free to invest his time and energy into things that can truly transform and scale his business. It’s beneficial for the seller and the buyer, while Amazon takes the part of the middleman connecting those two points.While it all sounds great, Amazon takes it’s cut in the form of al the different fees and costs. Since you’re not the only one selling products on Amazon, if you really want to beat your competition you need to beat them where it matters. In the accountant’s notebook.
The one who wins in the marketplace is the one who can pay the most to acquire the customer.
Keep those words in mind. If you can afford to spend the most resources to win over a limited pool of customers, you are making money while your competitors are left in the dust.But, to really know how much money can you afford to spend to acquire a customer, you need to know how much money you are spending on different Amazon costs.
Only then can you take the necessary steps to optimize your Amazon FBA business.
Those fees can be roughly divided into 3 categories:
Whether you are Fulfilment by Amazon seller or Fulfilment by Merchant seller, these are the fees you are sure to pay when you are selling on Amazon.
Amazon sellers fees
There are three methods to choose from if you are selling on Amazon:
For all beginners looking to start their own business, only the FBA method makes any sense so giving a thorough-breakdown of benefits is not really needed.
Since Amazon is providing you with its warehouse, logistics and customer support choosing any other option would cost much more than it’s worth. No matter which fulfillment option you choose, there are 2 plans available to choose from for any Amazon Seller:
The individual seller option comes with no associated monthly fees, but you are paying a flat 0.99$ fee for each transaction.
If you are selling more than 40 products on Amazon it’s a no-brainer decision to chose professional seller option for your business.
The price is 39.99$ and it’s deducted from your account each month.
A referral fee can be likened to a tax that Amazon is taking based on the category of the product you are selling.
For the privilege of selling in the world’s biggest store, you must pay this fee.
Refunds are something you simply have to take into account when calculating the profit margin for your venture. Since Amazon prides its self on its customer service, refunds for customers are managed quickly, but you will be charged an additional 5$ or 20% of the refund total, whichever is lower. It’s a way to penalize sellers in case they are not providing customers with the described product as well as giving customers a painless buying experience.
When selling products on Amazon as an FBA seller you don’t have to worry about packaging, managing and delivering said products to the customers. All of the work is managed by Amazon’s fleet of vehicles, thousands of warehouses and employees.
That benefit comes at a price though and here is the breakdown.
The main fee to keep in mind is the fulfillment fee that is depended upon the size of the product package
Another fee is associated with storing your inventory in Amazon’s warehouse. There are two fees associated with it:
If you have any inventory left at the end of the month (and you should, since you don’t want to end up unable to fulfill customer’s orders), Amazon will charge you a fee depending upon the size in square feet your inventory is occupying.
In case your product is not moving as fast as it should and you have products for 180 days or longer, you can expect to pay a long-term fee.
Since the profitability is influenced by turn-around speed (the speed which describes how often your inventory is replaced), having products collecting dust in the warehouse is not good for anyone, including Amazon.
To give sellers an extra push, Amazon is charging $6.90 per cubic foot of inventory.
In case you have products lying in storage for over a year you will have to pay $0.15 per product.
These are the fees that you may end up not having to pay, depending upon the category you’re selling your products or other factors.
If you end up having to pay this fee, good for you! It means you’re in the midst of creating your own huge store. Only sellers that have over 100,000 products will have to pay this fee in the amount of $0.005 per listed product.
It’s highly unlikely that you will ever have to worry about this fee.
Not so much as a fee as more of a penalty for not following Amazon’s guidelines. Amazon requires every seller to barcode and prepare his product before shipping it to the warehouse. In case you haven’t done your homework you can expect to pay this per-item fee.
A lot of time has passed since Amazon’s early days as a bookselling website, but some people still use this service. All sellers who rent books on Amazon have to pay a $5 rental book fee for each bok that they sell.
Hopefully, these fees haven’t discoured you from starting your own Amazon FBA business. Although they may seem numerous, the benefits of using Amazon heavily outweigh the incurring fees. That is the reason why so many thousands of people have found heir financial freedom selling on Amazon and it’s also a reason for you to join their ranks as well!
The hunt for the next big game-changer for your Amazon business is an iterative process that is an inevitable aspect of every Amazon merchants hectic schedule. Solutions like MerchantWords come to the rescue and into play in debacles like this.
MerchantWords is an all-encompassing data-bank of shopper keyword search titles. It serves estimations for all the types of searches for any product term. MerchantWords is advantageous in deciphering merchandises that are hotly demanded, & what buyers are searching for in Amazon. MerchantWords also shows you how keywords vary against matching projected search volumes, providing insights on merchandise to sell & the keywords you need to incorporate into your items' listings, so that will appear for a optimum number of linked searches every time.
At the moment, there exists, 3 MerchantWords offers to select:
USA – grants unbridled entry to USA data at only $30 per month or $300/ annum
Worldwide – grants unbridled entry to worldwide info for only $60 per month or $600/annum
Additional nations– grants unbridled entry to info from any of the nine other nations having exclusive Amazon stalls at $15 every month, or $150 every year.
MerchantWords offers robust array of services that helps you to bolster your items discover-ability, unravel new avenues and unearth buyer demand trends. MerchantWords services include:
MerchantWords’ premium optimization solution is a definite attempt by the company to upgrade from being a regular search engine into providing more helpful solutions targeted toward Amazon sellers. MerchantWords gives you:
This feature helps you to create and store your keyword lists. Create collections by going to the side toolbar, “Select Co”, and then enter your collection’s name. Click “ADD” & one is ready to start adding keywords.
MerchantWords classic data includes:
A program that generates associated, supplementary, and similar keywords, to discover new ways to connect with customers is termed keyword mulltiplier.
Efficient time-saving is important in Amazon search. Consider “yoga mats” title, this program generates every Page 1 listing in the title for Amazon USA. The advantage is getting pricing, reviews, and rating information. Everyone agrees that your new item should be placated on page 1 if it is to have any chance of succeeding and usurping competition.
A reverse ASIN tool, fortified with high-rank keywords for the adversary, supplies data straight from Amazon.
MerchantWords is famous like Jungle Scout, however, it’s entirely dedicated to finding keywords that other vendors are missing completely. With PPC becoming overly expensive, an optimized Amazon listing is paramount for long-term success. And MerchantWords is beneficial in ranking keywords all day long. One drawback to MerchantWords is that it does not provide a free trial; neither does it offer a refund policy. But if you are looking for a tried and trusted keyword data solution, then that small snag proves negligible as MerchantWords has your back.
Is my MerchantWords info safe?
Is free-trial an option for MerchantWords?
MerchantWords does not have a free-trial option at all. When one signs for a profile & feels dissatisfied by the program, they can terminate their profile within a fortnight in case of new profile and get a complete reimbursement.
How reliable is MerchantWords ?
Merchantwords have been used by Amazon sellers for ages. It is a highly reliable keyword search app. Merchantwords obtains info out from search metrics.
MerchantWords is a popular service & a rock-solid keyword research tool.
Meta description: Merchantwords is a supreme and well-tested ways to steady the ship of your Amazon enterprise. Register for Merchantwords & enjoy a host of amazing discounts.read article
With the rise of the golden age of the Internet came several different ways to earn income without stepping out of the comfort of your home. Some people discovered this and quit their jobs in search of better, more comfortable options. A lot of people spend most of their time in front of their laptops writing, calculating, designing, and other such professions. Others are still a little bit oblivious to the opportunities that exist online.
For that reason, we have written a detailed guide to inform and educate on the possibilities that exist in online income. There are so many ways you can make some extra cash online, especially as the owner of a website. One of them is the Amazon associates/affiliates program . Here, you would learn what exactly it is, how you can become an Amazon associate , etc. Dive in!
Amazon Associates Program is alternatively referred to as Amazon Affiliates Program. They're not mutually exclusive, in case you were wondering.
Moving on, Amazon Associates/Affiliates is an affiliate marketing Amazon program available to virtually everyone who owns a website. The program gives bloggers and website owners a chance to advertise Amazon products on their website. The product that the blogger advertises is entirely up to him or her. They then get commissions from Amazon whenever someone buys the advertised product by clicking the link that the blogger put up. It is a pretty straightforward way to make money from your blog/website.
Becoming an Amazon associate or an Amazon affiliate is quite simple. You can easily complete the whole process in four quick and understandable steps. We have taken our time to list them below:
The very first step in joining Amazon Associates/Affiliates program is owning a website. It is compulsory because your website is where your Amazon Associates/Affiliates link will be uploaded. Through the site, you will advertise the Amazon products you wish to sell. If you do not have a website, you cannot be a part of the program.
After starting your own blog/website, you need to create an account. At this point, all you need is to open the official homepage . Once you enter the page, locate and click the button that says, “Join Now for Free.” Afterward, you would need to log in to your Amazon account. If you aren’t an Amazon account owner yet, you would be asked to create one. Do whichever applies to you.
After completing the first and second steps successfully, you have to give Amazon Associates/Affiliates the necessary information about you. This is the stage where your account has to be built, and you would need to put in the following information:
After completing all of this, Amazon would send you to your very own homepage. On your homepage, you will see a dashboard indicating your performance. It would include overviews, earnings and other such information. Alongside that, you would be able to create Amazon Associates/Affiliates links via your homepage.
There are eight basic steps you need to follow to create a link and start your earning journey. They are listed below:
That’s it! All you need to do is drive readers to your site and get people to click on your link. You can earn as much as $2,000 monthly on commissions from Amazon Associates/Affiliates marketing.
Affiliate marketing is an excellent way to turn your site into an income generating avenue. While it will take some effort, especially in the area of getting people to click your link, it can be very rewarding. All you have to do now is begin pushing the buttons on your screen to join the program. In a few short steps, you too can start enjoying the rewards.read article
If you're searching for the next profitable product on Amazon, then you require the best product research and finder tools. These tools increase your probability of becoming a prosperous Amazon FBA seller by making your business scalable on Amazon’s highly-competitive marketplace. So if you're wondering what the best Amazon product research tool is, we have listed four great options for you.
If there ever was a highly recommended Amazon product research tool, it is IO Scout. It has a streamlined feature set compared to other options on the list, but it gets the job of discovering products that will earn you a profit done.
Here are a few notable features of IO Scout:
This Amazon product research tool has three plans for you to decide from. These plans are Start-up, Seller and Business, which cost $29, $49 and $69 each month, respectively.
There's no way to discuss product research Amazon tools without mentioning Jungle Scout. This tool is similar to IO Scout, as it includes a product database, product tracker and even an extension for Chrome.
Here are a few additional features that Jungle Scout provides:
To get started with this great product finder tool, you need to pay $39 for the web app and $19 for the extension. For both the web app and extension, it will cost you $49 a month.
While every tool here provides a modular approach to product research and finding in the form of sub tools, Helium 10 is by far the most comprehensive. This makes it a magnificent Amazon product finder software. It has 16 tools that can help you become the best seller on Amazon.
They are broken down as follows:
Helium 10 has a variety of plans to suit your needs, and these are Free, Platinum, Diamond and Elite Plan. Each one costs $0, $97, $197 and $397, respectively.
Viral Launch is another excellent Amazon product research software. On the fundamental level, it does pretty much everything each product research tool on this list does. But what makes Viral Launch standout is the way it helps you build the perfect listing and create automated PPC campaigns.
Here are the features that help you with that.
This product research tool has four plans, and the pricing for each one is $50, $83, $125 and $166 a month, respectively.
Amazon has lots of products in its marketplace. But if you want to get the best deals as a buyer or seller, you need to keep an eye on the prices of products. It's an exhausting activity, and if you don't pay the utmost attention, you’ll likely make bad decisions. So, it would help if you had a tool that automates the process and makes you set the right prices to sell your products (for sellers) or buy products at the fair market price (for buyers).
CamelCamelCamel is one of the best tools to solve this problem, and we’ll review it in this post.
CamelCamelCamel is a price tracker. It is majorly used by small businesses and independent sellers to ensure that they are not overpaying or understating prices for products. In monitoring the price history of millions of products daily, CamelCamelCamel helps buyers decide when to buy and sellers when to up or reduce their prices.
CamelCamelCamel is available in English, Dutch, Italian, French, and Spanish.
One of the most significant advantages of this tool is that the service is free. All you need to do is to register a CamelCamelCamel account and link your Amazon account to it to start using the tool's features.
Our CamelCamelCamel review will not be complete if we don't run through its list of amazing features. The tool has a desktop and mobile version, so it’s pretty easy to keep track of price fluctuations on the go.
To grasp how CamelCamelCamel helps you save money, here's a look at the tool's features:
If you need to access CamelCamelCamel quickly, then you can add its extension to your browser. The tool's browser add-on is called the Camelizer , and it allows you to go through the price history of a product without leaving the Amazon pages. The Camelizer supports popular browsers like Mozilla Firefox and Google Chrome . With only a click of the Camel on the toolbar, you can access the price history of Amazon products.
Another cool feature of CamelCamelCamel is that you can import your Amazon Wishlist into the tool. All you need to do is copy and paste the list's URL to CamelCamelCamel .
CamelCamelCamel tracks products on your wishlist as ‘Amazon new price minus one.’ The price watches that you’ve just imported are editable, and you can find them in the ‘Your Products’ icon under the ‘New’ filter.
Some of you will prefer not to use the Google Chrome extension for reasons best known to you. It's a good thing then that CamelCamelCamel has a Chrome extension substitute called the bookmarklet feature. In this feature, all you need to do is drag the camels to the bookmarks bar of any browser.
Before, you checked the prices of Amazon products manually. That is not only a time-consuming activity, but you can also miss out on some favorable fluctuations. 'Price drop alerts' is a fundamental feature of CamelCamelCamel. The feature works by setting a price threshold. Once the price of a product falls below or rises above this threshold, email alerts are sent to notify you.
To use the price drop alert feature, click on the ‘Top price drops’ icon. Next, select the categories of products you want to be informed of the price changes. Finally, choose the drop type and the time period. This should direct you to relevant product results.
It's a bit boring to get reports only in numbers without a graphical representation to drive the point home. So, CamelCamelCamel's product pages have charts of prices against time. The tool updates these prices from Amazon constantly.
Just below the charts, you’ll get the interpretations of the notations used.
A couple of years back, you could get notifications on Twitter for the fall or rise in prices. However, Twitter doesn't allow that service anymore.
As a footnote, it's important you know that you do not even need to log in to your Amazon account to use any of the CamelCamelCamel features above.
Having a competitive advantage is key to being successful as a seller on Amazon. And as a buyer, you wouldn't want to overpay for a product. Rather than monitoring the prices of products all day, you can use software like CamelCamelCamel to analyze and give the history of product's prices for you.
Q1: How does the price checking system work?
CamelCamelCamel categorizes products into nine locales, which is further broken down into two sub-groups. The first subgroup contains products that have a minimum of one price watch, while the other is for products that do not have price watches. After this rank in order of priority is complete, CamelCamelCamel begins the checking process, which it does hourly or several times in an hour. All groups are updated simultaneously.
If you want a product’s price to be checked often, then you need to create a price watch for it manually.
Q2: How can I create a 'price watch'?
To create a price watch, first, find a product on Amazon and copy its URL from the browser address bar. Next, head over to CamelCamelCamel and paste this URL, then click enter. Move your cursor to the icons that are beside the price. You should see a $-0.01 pop-up link. Click on it, and the 'Start Tracking' icon.
Q3: How do I disable Twitter alerts?
Before now, you could disable twitter notifications if you didn't want to get them. However, as Twitter has blocked CamelCamelCamel from sending alerts on Twitter, this isn't possible anymore. In years to come, CamelCamelCamel developers are working on the software being able to send notifications to not only Twitter accounts but also every other social media app you could think of.
That way, you could get price drop alerts and not miss out on favorable deals even while you're casually surfing the Internet.read article