Finding profit margins is easy and quick with the Helium 10 profitability calculator.
It takes tons of the manual work away, leaving you with a couple of margins to edit.
So in this blog post, we’ll show you exactly how to use Helium 10 profitability calculator and evaluate if the product will be profitable or not.
Why Choose Helium 10 Profitability Over Amazon's FBA Revenue Calculator?
While Amazon’s profitability calculator is a good calculator to use, there are a couple of benefits that make the Helium 10 calculator better:
- Quicker and Easier – When analyzing profitability, you want to be as fast as possible. And Helium 10 can help you with that. Many costs are automatically added to the equation, speeding up the process.
- Additional Fees Calculated – The issue with Amazon’s FBA calculator is that it doesn’t give you the complete picture of the fees. For example, Tax and Tariff costs aren’t calculated.
How to Access Helium 10 Profitability Calculator?
There are three main ways to access the calculator. Each one of them is useful for different situations:
#1 - Through the Chrome Extension
For the most part, this will be how you’ll use it! For this, you first need to install the extension.
After installation, you’ll be asked for your login details and others, such as your seller account.
Then, when everything is filled, you can start using it. Here’s the 3 step process:
- Search for a winning product
- Click on the Helium 10 logo on the top right corner of your chrome web browser.
- Fill in the missing margins, and you’re done!
#2 - Through the Product Listing Analytics
There’s an alternative way to access the profitability calculator! Furthermore, you get additional information about the product, such as:
- Data on the last 30-day sale price
- Product listing keywords
- Inventory levels
Here’s how you’ll access it:
- Find a product you want to research
- Open the product listing
- Scroll down until you see a section that displays product analytics
- Pick the “Profitability Calculator” option in the toolbar
Click it, and the calculator should open up as a pop-up window.
#3 - Amazon Search Results Page
Sometimes you need to quickly glance through the profitability of multiple products.
So instead of having to click on each listing separately, you can click the blue “Xray” tab on the bottom right corner, and Helium 10 will calculate everything on the page.
3-Step Guide to Using Helium 10 Profitability Calculator
Now that you understand how to access the Helium 10 profitability calculator, it’s time to learn how to use it! Fortunately, all you have to do is follow these three steps:
Step #1 - Download and Install Helium 10 Chrome Extensions
If you haven’t already done it, then you must install the Helium 10 Chrome Extension.
Fortunately, it’s pretty straightforward:
- On Helium 10 home page, you must go to the tools bar on the main menu.
- Then scroll down to free tools, and on the right side, you should see a button named “Chrome Extension.”
- Click on it, and you’ll be greeted with this page.
Then click the blue “Add to Chrome” Button, and let the browser do its job.
Once installed, you’re asked for login details. So log in with your account, and you’re done!
Step #2 - Find a Winning Product on Amazon
Now that everything has been set up, it’s time to do some product research and find products to sell. Once you’ve found the desired product, all you have to do is:
- Click on the Helium 10 logo on the top right of your browser.
- Then choose the “Profitability Calculator“.
- Now, you’re ready to calculate the profitability.
Step #3 - Edit Some Margins
Now that you’ve got the Helium 10 profitability calculator open, it’s time to start editing some of the margins for an accurate calculation. For this, you need to change the following margins:
- Unit Manufacturing Cost – The number on it estimates how much it costs to develop. So instead of relying on this, you should change it depending on how much your Alibaba manufacturer charges.
- Freight Cost – Another margin you need to change is the shipping costs. So be sure to ask how much it costs them to ship your products to Amazon Warehouses, and add that to the calculator as well.
- Est. Time in Storage – This margin estimates how long your product will stay in the Amazon warehouses before being sold. Then the calculator will add storage fee costs.
- Duties and Tariffs – You should add any custom taxes, fees, and responsibilities that haven’t yet been added. You can choose between percentage and dollar amount per product.
- Other costs – If any more fees haven’t been added, such as licensing or advertising costs, then this is the place you can add them.
Once all these margins have been modified, you get an accurate profit margin for your product.
How to Evaluate Product Profitability With Helium 10 Profitability Calculator?
You should clearly understand how much profit you will generate from each product.
However, numbers aren’t enough. Additionally to that, you need to evaluate if the product is going to be profitable or not.
For this, you should check for two statistics:
- ROI – This statistic shows how much money you’ll earn back from the capital invested. So if the ROI is 150% and you invest 200€, your return will be 500€! So a good ROI for your product would be anything above 100%.
- Profit Margin – Profit margin shows the percentage of your profit from the entire unit. So if your profit margin is 30% and the product is sold for 20€, your profit is 6€. A reasonable profit margin number is 25% or above.
So if your product matches the criteria, then this product is worth investing in.
How Does the Helium 10 Amazon Profitability Calculator Work?
To ensure the Helium 10 Amazon profitability calculator gives you an accurate profit estimation, Helium 10 takes data from existing listings. It uses many direct costs and metrics, such as:
- Product dimensions
- Outbound shipping weight
- Size tier
- Storage fees – It takes into consideration both the usual storage fees and during the holiday season (November – December)
- FBA fee
- Referral fee
- Net fees
- Margin fees
However, some costs and margins aren’t filled by Helium 10. These are metrics such as:
- manufacturing costs,
- freight shipping costs,
- estimated storage time
- and other costs
So you need to fill them out yourself. Then once all fields have been filled, the Helium 10 Amazon profitability calculator removes all the costs until the profit is left.
3 Tips for Increasing Product’s Profitability
But what if the product doesn’t fit the criteria? Does that mean you cannot sell it at all?
Well, not really! That’s because there are a couple of things you can do to modify to make it profitable for your FBA store. Here’s how you can do it:
#1 - Adjust Package Size
Amazon has set a standard sizing for their shipping boxes. That means if you could somehow make your product packaging smaller, that would mean you could quickly reduce the size of your shipping box.
And when you can reduce the size of the shipping box, you can reduce your costs, making your product more profitable.
#2 - Reprice Your Items
If that doesn’t work, then you might have to reprice your products to make them more profitable.
On Amazon, prices fluctuate, so if you price your products a bit higher, then it shouldn’t be too big of an issue.
However, before you do that, research to know that the pricing isn’t too much.
#3 - Research Other Winning Products
If all else fails, then there’s nothing left to do but find other products to sell. You could start by looking for an alternative option for the same product or something different. Remember to use the Helium 10 profitability calculator before ordering your first patch of products.
How Much Does Helium 10 Profitability Calculator Cost?
Helium 10 Profitability Calculator is free to use. All you need is to create a free Helium 10 account, install the chrome extension, and you’re good to go. However, if you want to use other tools, you might need to upgrade to a paid plan.
How Does Profitability Calculator Include the New Amazon FBA Fees on Clothing?
On February 2020, Amazon changed the FBA Fee structure for both clothing and battery-powered items. To give you an accurate profitability estimation, Helium 10 added a new dropdown menu in the FBA fee field. To get the correct cost, you must:
- Click on the menu in the FBA fee field
- Pick the description that fits best with your product
Then Helium 10 will display the correct FBA cost to you.
It’s a flat fee that is charged based on the weight of your product and its dimensions.
There are two possible reasons why your FBA fees are so high. Your product could either weigh a lot or the packaging. To reduce the fee sizes, you should always try to have smaller packaging or audit with Amazon to ensure you’re charged fairly.
Helium 10 profitability calculator is an easier and quicker way to calculate your product’s profitability. However, if you want to take full advantage of this tool, I suggest you try Helium 10 Black Box. With it, you can make product research a breeze!