Got a product idea for Amazon FBA but unsure of whether you've got the funds to make it work?
Input the numbers for the product into the calculator and find out the minimum viable budget needed for a strong launch.
Need help filling it in? Scroll down or click HERE
Incorporate the Budget Calculator into your Amazon product research routine to never choose the wrong product again!
Know someone who could benefit from this calculator? Sharing is caring!
Got a PRODUCT IDEA for Amazon FBA but not sure you've got the funds to make it work?
Input the numbers Into the calculator below and find out the minimum viable budget needed for a strong launch.
Need help filling it in? Click HERE for an explanation of how to use it.
Know someone who could benefit from this calculator? Sharing is caring!
All collected into the BIGGEST report on the market!
What is the cost of manufacturing per unit (not including shipping)? Input an estimate based on supplier quotes.
Manufacturing cost per unit normally depends on the number of pieces you purchase, your negotiating skills and relationship with the supplier (established sellers with large stock orders tend to get better deals and you shouldn't necessarily expect to get comparable quotes on your first order, especially if it isn't a large one).
Input rough shipping cost per unit.
When shipping a smaller stock order, your shipping cost per unit is usually higher (especially for heavier and larger items), but it should go down with future (larger) orders. You can get an instant quote on Freightos.com (free to register and use - not an affiliate) or similar sites.
How many monthly sales are you looking to make with the selected product? Input the number into the calculator.
Targeting around the average monthly sales that the first page of listings makes is recommended. Still, you can always target above-average monthly sales or even compete with the top sellers. I wouldn't recommend significantly lower-than-average sales targets, though.
To not run out too quickly, you'd want to stock up on at least two monts' worth of product.
How many sales are you targeting per month? Buy double that! Better yet, buy triple the amount. Input the number of months you will stock up on (for example: 1, 1.5, 2, 2.5, 3, etc.).
Manufacturing and shipping take time, so you'd always want to re-order well in advance, so you never run out. When listings are out of stock, they drop in ranking and you don't want that to happen.
Insert a rough estimate of potential additional expenses, such as $1000, $2000, $4000... The amount will depend on the quality of the product you choose and on your experience and skillset.
There are many expenses you'll encounter along the way. From company setup, trademark applications, design mock-ups for customization, branding design, barcode, quality checks, product photography/videography, advertising off of Amazon (social media, Google ads, landing pages, etc.), potential assistance with listing creation/optimization and/or ads, software purchase for keywords, sales volume estimates, etc. Account for these expenses beforehand.
Go to the most searched keyword of your product and check its PPC cost. Multiply it by 10 (assuming a 10% conversion rate). Then multiply that by the number of monthly sales you want to target (the same one you input into the 3rd column).
The above is a VERY rough estimate of PPC spend during launch and is based on a more aggressive launch strategy where you target making your average monthly sales with advertising in your first and ideally second month to obtain a good ranking.
How much you spend on ads will depend significantly on the keywords you choose, the average sales you are targeting, and competition levels. You likely won't be using the main keyword to advertise as it tends to be pricier and more competitive but will select more niche and cheaper keywords.
You can find PPC costs of keywords with Jungle Scout Keyword Scout.
After inputting all of the above values, the Amazon Budget Calculator calculates a minimum budget needed for a strong launch.
If you invest more than the recommended budget, your chances of success are better. But if the estimate is higher than what you can invest, I would highly recommend either waiting or choosing a product with either lower average sales, competition levels, lower selling and sourcing prices, or a combination of these.
What is the cost of manufacturing per unit (not including shipping)? Input an estimate based on supplier quotes.
Manufacturing cost per unit normally depends on the number of pieces you purchase, your negotiating skills and relationship with the supplier (established sellers with large stock orders tend to get better deals and you shouldn't necessarily expect to get comparable quotes on your first order, especially if it isn't a large one).
Input rough shipping cost per unit.
When shipping a smaller stock order, your shipping cost per unit is usually higher (especially for heavier and larger items), but it should go down with future (larger) orders. You can get an instant quote on Freightos.com (free to register and use - not an affiliate) or similar sites.
How many monthly sales are you looking to make with the selected product? Input the number into the calculator.
Targeting around the average monthly sales that the first page of listings makes is recommended. Still, you can always target above-average monthly sales or even compete with the top sellers. I wouldn't recommend significantly lower-than-average sales targets, though.
To not run out too quickly, you'd want to stock up on at least two monts' worth of product.
How many sales are you targeting per month? Buy double that! Better yet, buy triple the amount. Input the number of months you will stock up on (for example: 1, 1.5, 2, 2.5, 3, etc.).
Manufacturing and shipping take time, so you'd always want to re-order well in advance, so you never run out. When listings are out of stock, they drop in ranking and you don't want that to happen.
Insert a rough estimate of potential additional expenses, such as $1000, $2000, $4000... The amount will depend on the quality of the product you choose and on your experience and skillset.
There are many expenses you'll encounter along the way. From company setup, trademark applications, design mock-ups for customization, branding design, barcode, quality checks, product photography/videography, advertising off of Amazon (social media, Google ads, landing pages, etc.), potential assistance with listing creation/optimization and/or ads, software purchase for keywords, sales volume estimates, etc. Account for these expenses beforehand.
Go to the most searched keyword of your product and check its PPC cost. Multiply it by 10 (assuming a 10% conversion rate). Then multiply that by the number of monthly sales you want to target (the same one you input into the 3rd column).
The above is a VERY rough estimate of PPC spend during launch and is based on a more aggressive launch strategy where you target making your average monthly sales with advertising in your first and ideally second month to obtain a good ranking.
How much you spend on ads will depend significantly on the keywords you choose, the average sales you are targeting, and competition levels. You likely won't be using the main keyword to advertise as it tends to be pricier and more competitive but will select more niche and cheaper keywords.
You can find PPC costs of keywords with Jungle Scout Keyword Scout.
After inputting all of the above values, the Amazon Budget Calculator calculates a minimum budget needed for a strong launch.
If you invest more than the recommended budget, your chances of success are better. But if the estimate is higher than what you can invest, I would highly recommend either waiting or choosing a product with either lower average sales, competition levels, lower selling and sourcing prices, or a combination of these.
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