Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI after all Amazon fees and COGS.
Amazon Referral Fee:
$0.00
Total Amazon Fees:
$0.00
Total Cost per Unit:
$0.00
Net Profit:
$0.00
Profit Margin:
0.00%
Return on Investment (ROI):
0.00%
Understanding Amazon FBA Profitability
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but the fee structure can be complex. To remain profitable, you must account for every dollar leaving your account—from the initial manufacturing cost to the final delivery fee.
The Core Components of FBA Fees
- Referral Fee: This is essentially Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
- Fulfillment Fee: A flat fee charged per unit to pick, pack, and ship your product. This is determined by the weight and dimensions of your product.
- Storage Fees: Amazon charges for the space your inventory occupies in their fulfillment centers. These fees typically increase during the Q4 holiday season.
- COGS (Cost of Goods Sold): This includes the price you pay the manufacturer and any inspection fees.
Realistic Example:
If you sell a yoga mat for $35.00:
– Product Cost: $9.00
– Shipping to Amazon: $1.50
– Referral Fee (15%): $5.25
– Fulfillment Fee: $7.50
– Storage & Ads: $4.00
Net Profit: $7.75 | Margin: 22.1% | ROI: 73.8%
If you sell a yoga mat for $35.00:
– Product Cost: $9.00
– Shipping to Amazon: $1.50
– Referral Fee (15%): $5.25
– Fulfillment Fee: $7.50
– Storage & Ads: $4.00
Net Profit: $7.75 | Margin: 22.1% | ROI: 73.8%
Why Monitoring ROI is Critical
While many sellers focus on "Profit Margin," ROI (Return on Investment) tells you how hard your capital is working. A high ROI means you can reinvest your profits faster to buy more inventory. For a sustainable FBA business, most experts recommend aiming for an ROI of at least 100% to cover unexpected costs like returns and price wars.
Strategies to Improve Your FBA Margins
If your margins are slim, consider optimizing your packaging. Reducing the size or weight of your product can move it into a lower FBA fulfillment tier, instantly saving you dollars per unit. Additionally, monitoring your ACOS (Advertising Cost of Sales) ensures your PPC spend isn't eating your entire profit.