Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for FBA listings.
Calculation Summary
Understanding Amazon FBA Profit Margins
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but the complexity of the fee structure can often hide your true take-home pay. Using an Amazon FBA Profit Calculator is essential for any seller looking to maintain a healthy bottom line.
Key Metrics Explained
- COGS (Cost of Goods Sold): This includes the manufacturing cost of your product and shipping from the factory to your warehouse or directly to Amazon.
- Referral Fee: This is Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total sales price.
- FBA Fulfillment Fee: A per-unit fee for picking, packing, shipping, and providing customer service for your orders. This is based on the weight and dimensions of your product.
- Storage Fees: Monthly fees based on the volume (cubic feet) your inventory occupies in Amazon fulfillment centers.
A Practical Example
Imagine you are selling a yoga mat for $35.00. Your product cost is $10.00 and shipping to Amazon costs $2.00 per unit.
1. Referral Fee (15%): $5.25
2. FBA Fee: $6.50 (Standard Large)
3. Storage/Misc: $0.50
Total Expenses = $10 (COGS) + $2 (Ship) + $5.25 (Ref) + $6.50 (FBA) + $0.50 (Misc) = $24.25.
Your Net Profit would be $35.00 – $24.25 = $10.75, resulting in a 30.7% profit margin.
Strategies to Increase Your FBA Margin
To improve your profitability, consider these three tactics:
- Optimize Packaging: If you can reduce your product's dimensions to fit into a smaller FBA size tier, you can significantly lower your fulfillment fees.
- Bundle Products: Since the FBA fee is charged per unit, bundling multiple items into one SKU allows you to pay the fulfillment fee once while increasing the total sale value.
- Inventory Turnover: Avoid "Long-Term Storage Fees" by managing your stock levels efficiently. Keeping only 60-90 days of stock is usually the "sweet spot" for FBA sellers.