what's going on is on amazon sellers or hopefully soon-to-be Amazon sellers my
name is beau crabill founder of Amazon fba University and in this video I'll
be going over Amazon seller fees now the reason why this is important because if
you're gonna go sell a product you definitely want to make sure that you
actually will be profitable and actually if you stay until the whole entire video
I'm gonna be showing you a bonus how you can actually always reduce your fees
even after using this calculator okay there's a few tricky ways how you can
actually get your fees reduce I'll be showing you that at the very end so not
talking what's getting this so before you calculate your fees you
need to understand how you're selling and if there's any other expenses okay
so say for example I so only brand-name products but say if you're doing
arbitrage or online arbitrage tactical arbitrage or for some reason you're
selling some products and you have a third party shipping service or you have
a third party storage place to prep your products that's gonna be some extra cost
or for example if your private labeling then you're gonna have to take this with
a grain of salt because these aren't gonna be the exact same products you're
listing under okay but now with me I only sell brand-name products and all my
products shipped directly from my suppliers warehouse to Amazons warehouse so
there's very little to no other variables involved with this okay so
what I'm gonna do is I understand the products I'm gonna be something so what I'm
gonna do I'm gonna copy the asin for these products in a Google sheet right
here and what you want to do is you want to go into Amazon first so you'd go
paste in the Asin right you paste it in this product right here we
realize our cost is $4.25 but there's gonna be a lot of fees with this
product that's the reason why I'm using this because the fees for this is
humongous okay and what you want to basically do you want to see the buy Box
price okay the buy Box price is the first price you see okay so try not to
complicate yourself with the buy box basically the first thing you see the
first price when you go to the main detail page is the buy box and that's
gonna be the price we are calculating from okay so the next step would be is
to go into google and search FBA fee calculator you can search FBA Revenue
calculator either search FBA fee calculator and it's usually always me
the first or second one and it's gonna say sellercentral .com / hz /fba
slash profitability calculator okay and then you click on that and then what you
do you paste in the ASIN and you just copy the reason why you're doing this is
because this is the exact same products you're gonna need a listing under okay
so I'm not gonna be creating a whole entire new listing it and
learn how to sell process like this I will be hosting a free live webinar on
Thursday it'll be the first link in the description you can click it and
register for the webinar and see how you can sell price just like this and this
is probably a great time to tell you to subscribe to my youtube channel make
sure to hit the subscribe button also turn on the little notification button
so you actually get notified for my videos and there's probably great time
to tell you to join the Amazon FBA University public free Facebook group so
feel free to join that and now let's go back into this calculator okay so what
you want to do is you want to put in the buy box price for this thing right here
okay so the buy box was forty one dollars and forty-five cents so forty
one dollars and forty-five cents so you can also put forty one forty five for
your fulfillment but the difference between your fulfillment and Amazon for
film is this right here means you're shipping it out okay you're shipping it
out yourself your labeling and all that stuff
amazon fulfillment is FBA since the prime of shipping and everything like
that and using amazon services so i mean if you put your price at your
fulfillment you're gonna have to sell it for a lot cheaper because if we actually
go back into this product there might be some people selling it for cheaper but
they're not selling FBA okay so this person right here someone for $35.80
they are shipping from georgia they're shipping themselves okay so that's why
you have to be selling for a lot cheaper so really take your fulfillment side
with a grain of salt because it's just not gonna happen okay plus you have to
put plug in your cell for phone so when you're doing FBA technically amazon
ships for free but it's their fees out of somewhere else okay so i'm not gonna
put anything to the shipped amazon fee but with the ship to amazon fee well
that's gonna be that's meaning you getting your products to Amazon's
warehouse so I ship directly from my suppliers warehouse and that's usually
less than 20 cents at most will ever be 50 cents per item so I usually just
leave this blank I can usually negotiate down it's it's very insignificant okay
so now all I'm gonna do is plug in my cost of product once we go in my Google
sheets it's four dollars and 25 cents so we plug in $4.25 and these are
exact products every one Amazon fba university is able to give and the
profits 13 dollars and 27 cents each now you're gonna look over here say whoa
it's thirty two dollars and 23 cents each but on this side for your
fulfilling that's not going to include your cost of shipping are you gonna look
over here oh wow it's thirty two dollars and twenty
three cents profit right but that's not gonna include your cost of shipping it's
also not gonna include like how low you have to get it to actually win the buy
box okay so that's pretty cool right there and obviously going to here and
break down the fees what we'll notice is we can plug in here and it's gonna show
us our monthly storage fee and our fulfillment fee okay
so each month we are gonna get charged for each one of these products $2.97 for
a monthly storage for you okay and the monthly storage fees range is
quite a bit and sometimes they'll hold it and hold the months it's higher and
the other month it's lower okay now the fulfillment feed that's for them basically
fulfilling it so prepping it packing and shipping it that's their shipping fee
basically and that's kind of how the fees would get broken down and then you
also have this fee up here which is the referral fee okay so the referral fee is
just the percentage of when Amazon take so it looks like they're taking 15% or
so Amazon takes anywhere between 8 to 20 percent for each category okay so we
understand that now let's go over to another one before I tell you the secret
how to lower these fees okay because I'm looking here I could probably get these
things down to lower than that but how do I do that so before I do it let's go
into another product it's going to this one right here and let's figure out just
kind of more practice all right because it's better to practice and more and
more you can handle it and kind of understand the flow of things gonna
understand like cuz this producti we just went over that was a very very high
fee involved with that couch of that product okay now this one let's see if
it's a lower one so we realize it's 15.49 it's a Crayola Crayons 24 packs pack of
12 and what we're gonna do now go into the same exact thing right here and
you're gonna hit try another product this is gonna basically clear out the
data and you want to clear out that and you hit paste you know populate then you
go plug in the by box price which is fifteen dollars and forty nine cents you
plug in fifteen dollars and forty nine cents then what you do I'm not gonna put
anything into the ship to amazon fee this is probably literally less than eight
cents and then I'm gonna put an our cost which I believe is six forty six forty
yeah so going to six dollars and forty cents you hit calculate that's a dollar
ninety three on each one some people might say oh that's good some people
might say that's bad I would say that's pretty good but now let's go break down
to the fees and we see the referral fee is two dollars and thirty nine cents
all right so if we look at like the variable closing fee this can sometimes
be for certain items like media items and everything like that so unless
you're doing media items like books don't worry about the verb
closing fee on the Amazon referral fee see it's just the author percentage so
again it's 8 to 20 percent in each category usually about 15% so then we
break down to here we realize the monthly storage fees 18 cents per unit
and then the fulfillment fee is $4 66 cents so not too bad and so now the
secret what I was telling you about a little bonus tip right so you understand
how these fees you understand where they're coming from
but what you can do I'm gonna tell you right now if you're ever selling more
than 500 items okay of one single unit what you want to do is you want to call
Amazon the reason one you want to call Amazon is in Amazon you can go into
seller central you can go into the top right and search help and search self
support number or you can google and basically search Amazon seller support
number and that should be able to work the reason why you want to do this is
because and if Jeff Bezos so if you're watching this video and this is
disclaimer but most the time when people are calculating these fees so when the
Amazon employees are calculating and what these storage fees are whether
these are because these are breaking down basically by weight and dimensions
okay so they the employees their are and I think so are trained to round up okay
now there's a lot of times right it's about like 50 percent rate and then if
you call up an amazon associate or a call up the seller support number and
say hey can you check out this asin and it feels like the weights and dimensions
are too high 50 percent of the time they're gonna probably lower the fees
okay and they're not gonna raise the fees if
you'd ever hire anything like that because you can accept or decline them
but it does not hurt if you're selling a log just simply give them a quick call
and say hey can you go check out this Aysen can you go relay and re measure
the dimensions and most the times they will actually lower the fees so hope you
guys like this video and again if you want to learn how to sell practice like
this because these approximate from my supplier I will be having a free live
webinar on Thursday you can join it's completely free
you can register down below it's gonna be the first link in the description
also make sure to subscribe my youtube channel have a great day and make sure
you give this video a thumbs up