Calculate your net profit, ROI, and margins after Amazon fees.
Total Amazon Fees:
Total Unit Cost:
Net Profit:
Net Margin:
ROI:
Understanding the Amazon FBA Profit Formula
Selling on Amazon via Fulfillment by Amazon (FBA) offers massive scale, but the fee structure can be complex. To maintain a healthy business, you must calculate your profit margins accurately before sourcing products.
Key Metrics Explained
Referral Fees: This is Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total sale price.
Fulfillment Fees: This covers the picking, packing, and shipping of your orders. This is determined by the size and weight of your product.
Cost of Goods Sold (COGS): The total manufacturing or purchase price of your product from the supplier.
Storage Fees: Monthly costs for holding your inventory in Amazon's warehouses. These increase during Q4 (October – December).
Example Calculation
If you sell a yoga mat for $40.00:
Product Cost: $10.00
Referral Fee (15%): $6.00
FBA Fulfillment Fee: $7.50
Shipping & Storage: $1.50
Total Profit: $15.00 (37.5% Margin)
How to Increase Your FBA Margins
To improve your bottom line, focus on optimizing your product packaging to fit into smaller FBA size tiers. Additionally, negotiating better rates with suppliers or increasing your average order value through bundles can significantly boost your ROI.
function calculateFBAProfit() {
var price = parseFloat(document.getElementById('fba_sale_price').value) || 0;
var cogs = parseFloat(document.getElementById('fba_cost_goods').value) || 0;
var shipTo = parseFloat(document.getElementById('fba_shipping_to').value) || 0;
var referralPercent = parseFloat(document.getElementById('fba_referral_fee').value) || 0;
var fbaFee = parseFloat(document.getElementById('fba_fulfillment_fee').value) || 0;
var storage = parseFloat(document.getElementById('fba_storage_fee').value) || 0;
var marketing = parseFloat(document.getElementById('fba_marketing').value) || 0;
if (price 0) ? (netProfit / (cogs + shipTo)) * 100 : 0;
// Display results
document.getElementById('fba_results_area').style.display = 'block';
document.getElementById('res_total_fees').innerHTML = '$' + totalAmazonFees.toFixed(2);
document.getElementById('res_total_cost').innerHTML = '$' + totalCostPerUnit.toFixed(2);
var profitElement = document.getElementById('res_net_profit');
profitElement.innerHTML = '$' + netProfit.toFixed(2);
if (netProfit >= 0) {
profitElement.className = 'fba-result-value profit-positive';
} else {
profitElement.className = 'fba-result-value profit-negative';
}
document.getElementById('res_margin').innerHTML = margin.toFixed(2) + '%';
document.getElementById('res_roi').innerHTML = roi.toFixed(2) + '%';
// Scroll to results on mobile
document.getElementById('fba_results_area').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}