How do I price for Amazon.sa when I pay both a referral percentage and a fixed fulfilment fee?
Split the charges in two: the referral fee goes in the percentage fee field because it is taken from the price, and the fulfilment fee goes in fixed fees because it is an amount per unit. A product costing 48 with a fulfilment fee of 9, a 12% referral fee and a 15% margin needs a price of 78.08.
Two kinds of charge, two fields
The usual mistake with Amazon pricing is lumping every fee into one number. The referral fee moves with the price: raise the price and it rises. The fulfilment fee depends on the size and weight of the parcel and stays put when the price changes. Turn the fulfilment fee into a percentage, or the referral fee into a fixed amount, and the price goes wrong the moment you adjust it.
The Selling-price calculator has one field for fixed fees per order and another for percentage fees on the selling price. That split is exactly what an Amazon calculation needs.
The steps
- From the fee preview in Seller Central or a past settlement report, note the referral rate for your product's category.
- Note the fulfilment fee for this unit and any other fixed amount charged per unit.
- Enter the product cost, the rate as the percentage fee and the fixed amounts as fixed fees.
- Leave shipping empty if Amazon handles delivery, since that cost sits inside the fulfilment fee.
- Enter your target margin and read the price and its breakdown.
Cost 48, fulfilment fee 9, referral 12%, margin 15%.
Suggested price 78.08. Referral at that price is 9.37, total fees 18.37, profit 11.71.
Forget the fulfilment fee and the price comes out at only 65.75, more than 12 below the price that really hits the margin.
The tool does not know Amazon's tables
There are no Amazon rates or fees inside the tool, and no category list. The result is only as right as the numbers you copy from your account. The fulfilment fee in particular follows the packed dimensions, so if you change the packaging, run it again. To see how box size affects carrier charges in general, the Volumetric shipping-weight calculator helps you compare cartons before you decide.
Your break-even price on Amazon
Set the margin to zero with the same fees to see the lowest price that does not lose money: 64.77 here. That figure is worth knowing before you join a deal or drop the price to compete with another seller on the same listing. After the first batch of sales, compare the real profit in your report with the planned margin using the Profit margin calculator.
Common questions
Can I put monthly storage fees in fixed fees?
Yes, if you divide them by the units you sell in a month, so they become a rough cost per unit.
Does the result include VAT?
No, it is a pre-tax price. Add tax afterwards at the rate you enter.