An Amazon Scanner That Gives You FBA Net Payout
September 4th, 2011 by Skip McGrath
OK – What is FBA and “Net Payout” and why do I care?
FBA stands for Fulfillment By Amazon. This is a program where Amazon essentially becomes your personal dropshipper. You send your inventory to Amazon and when it sells on Amazon they will collect the money, communicate with the customer, pack and ship the product. All you do is sit back and wait for the check from Amazon. And if you sell the item on eBay, Amazon will also ship it to your eBay customer for you.
This report is about the FBA Scout scanning and pricing tool from FBA Power. Scanners are tools that you can use to scan the bar code of a product and the tool will tell you how much the item is selling for on Amazon and how many competitors you have.
Unlike other tools that only report media prices or high and low prices, FBA Scout, which resides on your Android or iPhone, tells you what and how many items are being sold in FBA and their prices. Take a look at the image of the screen for a Toy Story Video:
The Net Payout amount is the exact payout you will receive if you sold an item for the price listed in the FBA column. This is calculated using the category specific commission, weight based fees, and all FBA fees.
This adds even more accurate information on which you can base your buying decisions. Here is what a screenshot looks like with the Net Payout feature:
How Do I use Net Payout to make money?
OK – Lets say you bought the Toy Story DVD for $3.50. Look at the net payout results. That is the price you will receive after all Amazon fees including storage and FBA handling fees. So if you wanted a fast sale you could price your DVD a few cents under the lowest FBA offer of $8.64 – that has a net payout of $5.88.
Since your cost was $3.50 you would make a profit of $2.38. On the other hand, you can wait until the cheaper ones sell and price yours somewhere in the middle –say at $11.73. You would probably have to wait until the other sellers sold theirs, but yours would also sell. When it did you would earn $5.01
Although this example is for a media item, the real genius of FBA Scout is that it scouts anything that is selling on Amazon. A few weeks ago I was in Costco and found a Rachel Ray Chillout Cooler tote costing $14.99. I checked FBA Scout and one seller had then in Amazon for $29.99 but not in FBA. I bought a dozen of the totes and priced them at $34.95 in FBA. At first nothing happened, but then after about a week they were discovered and the entire dozen sold within a few days. But when I saw my payout I was surprised that the Amazon fees were higher than I expected. This turned out to be because of their size. I still made good money but just not as much as I was expecting. Had I had the Net Payout tool then, I would have known exactly how much to expect. this is the kind of information that helps you make buying decisions on the fly.
If you would like to learn how to sell on Amazon using FBA, the Proven Amazon Course is the only complete training course available on the web that teaches proven Amazon FBA Strategies. And the best news is that the price has been temporarily reduced from by $100.
This adds even more accurate information on which you can base your buying decisions.