Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Amazon FBA products.
How to Calculate Amazon FBA Profit
Understanding your numbers is the difference between a thriving e-commerce business and a failing one. This Amazon FBA Profit Calculator helps you break down the complex fee structure of selling on Amazon. To get an accurate result, you must consider several key factors:
- Cost of Goods Sold (COGS): This is the manufacturing price you pay to your supplier per unit.
- Shipping to Amazon: Don't forget the cost of freight, customs, and domestic transport to get your items into an Amazon fulfillment center.
- Amazon Referral Fee: Amazon charges a percentage of the total sales price for every item sold. For most categories, this is 15%.
- FBA Fulfillment Fee: This covers the picking, packing, and shipping of your orders to customers. It is determined by the size and weight of your product.
- Marketing & Misc: Include your PPC (Pay-Per-Click) advertising costs and storage fees here to see your true "take-home" profit.
Example Calculation
Suppose you are selling a yoga mat for $40.00. Your supplier charges you $10.00 per unit, and it costs $2.00 per unit to ship from China to the USA Amazon warehouse. Amazon's referral fee is 15% ($6.00), and the FBA fulfillment fee for this size is $7.50. You spend roughly $4.00 per unit on advertising.
Total Costs: $10 (COGS) + $2 (Ship) + $6 (Referral) + $7.50 (FBA) + $4 (Ads) = $29.50
Net Profit: $40.00 – $29.50 = $10.50
Profit Margin: 26.25%
ROI: 87.5%
Tips to Improve FBA Margins
1. Optimize Packaging: A small reduction in box dimensions can drop your FBA tier, saving you dollars on every single sale.
2. Negotiate with Suppliers: Once you have volume, negotiate a lower COGS to instantly boost your margin.
3. Monitor Storage Fees: Amazon's storage fees skyrocket during Q4 (October – December). Manage your inventory levels to avoid "Aged Inventory" surcharges.