One of the biggest advantages of becoming a seller on Amazon UK is that you gain immediate access to thousands of buyers across the UK. Apart from this you also have a foothold to the lucrative Amazon European markets.
The Amazon FBA UK program is flexible and allows fulfilment from UK to serve UK based buyers as well as those in the EU. Sellers joining the FBA UK program simply pay the fulfilment fee which is a flat fee based on product category, weight and size and storage fees charged at cubic foot per month. Know these and you can price your product right to be competitive and get buyers to click on buy when your product shows up in buy boxes. However, this is a simplistic view. There are other things to consider as well in the matters of selling on Amazon UK.
Vectors to consider
The simple view is to know your landed cost. You then use the Amazon FBA calculator UK to calculate the charges you will pay to Amazon. You can use it as a thumb rule to set pricing but in order to fine tune prices and know profits precisely you need to consider other vectors. These are:
- Prevailing selling prices on Amazon and other online stores for the product you propose to sell
- Quantity of products that can be sold on Amazon marketplace
- Velocity, which means how fast your products are sold within a time frame
- VAT on products and on Amazon FBA fees
- Demand levels for that product, and,
- Competition on Amazon marketplace.
This may become a bit complicated where you can take assistance for research from established e-commerce enablers. Engaging in this exercise will certainly improve sales.
Profit
Profit is important in any transaction, especially when you are selling on Amazon UK through its FBA program. Knowing just how much you will make on each transaction and the associated costs is also important. Using Dig Commerce Amazon FBA calculator UK gives clear indication of each cost component and your costs as well as earnings on each transaction. This, of course, does not factor in returns by buyers. Consider that too when you use the Amazon UK FBA calculator to set a selling price for your product. Compare the price you set with prices prevailing on Amazon UK marketplace. You will know immediately if you should list that product or sell it through other channels. If you are not likely to make a profit then it is not worth listing that product on Amazon.
You get to view graphs of spending and earning. The bar graph shows the price, total charges you pay to Amazon UK for FBA and your earnings. Use this as a base to work out the number of units you are likely to sell and the overall FBA costs you incur. Compare it to sales you would achieve on a direct basis and you will know whether the higher volume-FBA charge feature of Amazon FBA UK is worth it or not.
Many sellers join the FBA program with enthusiasm and high hopes but fail to see returns and their inventory remains sold due to lack of adequate research and decision making. Some of these lacks can be remedied if you make full use of the Amazon FBA calculator for UK before you join and sell on the Amazon UK platform.
The FBA calculator can only give you a narrow focus on costs and pricing while there are various other aspects to consider too. This is where employing a suitable ecommerce enabler can help you get a broader view and make better informed decisions about FBA listings and pricing.
Digi Commerce 