Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Fulfillment by Amazon.
How to Calculate Amazon FBA Profitability
Understanding your numbers is the difference between a successful Amazon business and a failing one. When using an Amazon FBA Calculator, you must account for several critical variables that eat into your gross revenue.
1. Referral Fees: This is Amazon's commission for selling on their platform. For most categories, this is 15%, but it can range from 8% to 45% depending on the niche.
2. Fulfillment Fees (FBA Fees): These are the costs for Amazon to pick, pack, and ship your product. These are determined by the weight and dimensions of your product's packaging.
3. COGS (Cost of Goods Sold): This is the manufacturing cost of your product. Always include the unit price from your supplier.
Example Calculation
If you sell a yoga mat for $40.00:
- Product Cost: $10.00
- Shipping to Warehouse: $2.00
- Referral Fee (15%): $6.00
- FBA Fulfillment Fee: $7.50
- Monthly Storage: $0.50
Your Net Profit would be $40.00 – ($10.00 + $2.00 + $6.00 + $7.50 + $0.50) = $14.00. This represents a 35% profit margin.
Tips to Improve FBA Margins
To maximize your Amazon FBA ROI, consider optimizing your packaging. Reducing the size or weight of your box can move your product into a lower FBA tier, potentially saving dollars per unit. Additionally, sourcing higher volumes can lower your unit cost (COGS) and inbound shipping rates.