Calculate your FBA or FBM margins accurately including referral fees and shipping.
Financial Breakdown
Total Amazon Fees:
Total Expenses:
Net Profit:
Profit Margin:
Return on Investment (ROI):
Understanding Amazon FBA Profit Margins
Selling on Amazon is more than just finding a product and listing it. To be a successful seller, you must understand the "hidden" costs associated with Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). This calculator helps you peel back the layers of Amazon's fee structure.
Key Components of the Calculation
Selling Price: The final amount a customer pays for your item.
COGS (Cost of Goods Sold): The price you paid the manufacturer for the product, including packaging.
Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15%.
FBA Fees: These are the picking, packing, and shipping fees Amazon charges based on the weight and dimensions of your product.
Example Profit Scenario
Imagine you sell a Yoga Mat for $40.00. Your manufacturing cost is $10.00. Amazon takes a 15% referral fee ($6.00). The FBA shipping fee is $7.50, and it costs $1.00 to ship it to an Amazon warehouse. Your total costs are $24.50, leaving you with a Net Profit of $15.50 and a 38.75% profit margin.
How to Increase Your ROI
To maximize your Amazon business, focus on reducing your COGS through bulk orders and optimizing your packaging dimensions to lower your FBA fee tier. Even a 1-inch reduction in packaging can sometimes save $1.00+ per unit in fulfillment costs.