Amazon FBA Profit Calculator
Calculate your net profit, ROI, and Amazon fees instantly.
Understanding Your Amazon FBA Margins
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but the fees can be complex. To ensure your business is sustainable, you must accurately calculate your net profit after all Amazon-related expenses.
Key Components of the FBA Calculation
- Referral Fees: This is Amazon's "commission" for selling on their platform. Most categories charge 15%, but it ranges from 8% to 45%.
- Fulfillment Fees: This covers picking, packing, and shipping your product to the customer. This is based primarily on the weight and dimensions of your product.
- Cost of Goods Sold (COGS): The total cost to manufacture or purchase one unit of your product.
- Inbound Shipping: The cost to send your inventory from your supplier or warehouse to an Amazon Fulfillment Center.
Example Calculation
Imagine you sell a yoga mat for $35.00. Your cost to buy it is $10.00, and it costs $2.00 to ship it to Amazon's warehouse. At a 15% referral fee ($5.25) and an estimated FBA fulfillment fee of $6.00, your total expenses are $23.25. Your net profit would be $11.75, resulting in a 33% profit margin and a 98% ROI.
How to Improve Your FBA ROI
To maximize your profits, focus on Packaging Optimization. Since FBA fees are based on size tiers, reducing your box size by even an inch can sometimes move your product into a lower fee bracket, saving you thousands of dollars annually. Additionally, always factor in PPC (Pay-Per-Click) costs as part of your marketing expenses to get a true picture of your "Net Take Home" profit.