Amazon FBA Profit Calculator
How to Use the Amazon FBA Profit Calculator
Calculating your potential Amazon FBA (Fulfillment by Amazon) profit is the most critical step for any private label seller or reseller. This tool helps you break down the complex fee structure of the Amazon marketplace into a single, actionable net profit figure.
To get an accurate result, ensure you have your COGS (Cost of Goods Sold) ready, along with estimated shipping rates from your supplier to the Amazon fulfillment center. The calculator subtracts these expenses from your target sales price to show you what actually hits your bank account.
Understanding Amazon Fees
Referral Fees: Most categories on Amazon carry a 15% referral fee, which is essentially the commission you pay Amazon for bringing the customer to your product. This is calculated on the total sales price.
FBA Fulfillment Fees: These are the "Pick & Pack" fees. They vary based on the weight and dimensions of your product. A standard-sized item typically ranges from $3.50 to $6.00, while oversized items cost significantly more.
Example Calculation
Imagine you are selling a "Premium Coffee Mug" for $25.00:
- Unit Cost: $4.00 (from your manufacturer)
- Shipping to FBA: $1.00
- Referral Fee (15%): $3.75
- FBA Fee: $5.40
- Monthly Storage: $0.15
In this scenario, your total cost is $14.30. Your Net Profit is $10.70, with a profit margin of 42.8% and an ROI (Return on Investment) of 267.5%.
Strategies to Improve Margins
If your profit margins are below 20%, consider the following tactics:
- Optimize Packaging: Reducing the weight or dimensions by even half an inch can drop your fulfillment fee to a lower tier.
- Negotiate with Suppliers: As your volume increases, aim to lower the per-unit manufacturing cost.
- Bundling: Selling multiple units as one pack increases the average order value (AOV) while keeping the fulfillment fee relatively stable.