Success on Amazon depends on understanding your "net" numbers. Many sellers focus on gross revenue, but Fulfillment by Amazon (FBA) involves several layers of fees that can quickly erode margins. This calculator helps you break down every cost component.
Key FBA Cost Factors
Cost of Goods Sold (COGS): The total cost to manufacture or purchase one unit from your supplier.
Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total selling price.
Fulfillment Fee: The cost for Amazon to pick, pack, and ship your product to the customer. This is based on the weight and dimensions of your product.
Shipping to Amazon: The cost to send your inventory from your warehouse or supplier to an Amazon Fulfillment Center (usually via UPS or LTL).
Example Calculation
If you sell a yoga mat for $40.00:
Product Cost: $10.00
Shipping to Amazon: $2.00
Referral Fee (15%): $6.00
FBA Fulfillment Fee: $7.50
Storage/Misc: $0.50
Your Total Expenses would be $26.00, leaving you with a Net Profit of $14.00. This results in a 35% Profit Margin and a 140% ROI.
Tips for Increasing Margins
To improve your FBA profitability, consider optimizing your packaging to drop into a lower FBA size tier, negotiating better rates with suppliers for bulk orders, or increasing your selling price by building a stronger brand presence through Amazon PPC and A+ content.