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Amazon FBA Profit Calculator

Calculate your net profit, margins, and ROI for Amazon FBA products

Product Data

Amazon Fees

Profitability Summary

Total Revenue: $29.99
Cost of Goods (COGS): -$8.50
Amazon Fees: -$10.35
Inbound Shipping: -$1.20
Net Profit per Unit
$9.94
Net Margin
33.1%
ROI
116.9%

Understanding Amazon FBA Profitability

Selling on Amazon using the Fulfillment by Amazon (FBA) program is a powerful way to scale an e-commerce business, but understanding your true margins is critical. Many sellers only look at the product cost and the selling price, forgetting the complex web of fees that Amazon charges.

Key Metrics Explained

  • Referral Fee: This is Amazon's "commission" for finding you a buyer. For most categories, this is 15% of the total selling price.
  • FBA Fulfillment Fee: This covers the cost of picking, packing, and shipping your product to the customer. This depends on the size and weight of your item.
  • Inbound Shipping: The cost to send your inventory from your warehouse or manufacturer to an Amazon Fulfillment Center.
  • Net Margin: The percentage of your selling price that remains as profit after all expenses.
  • ROI (Return on Investment): How much profit you make relative to the cost of your product. An ROI of 100% means you doubled your money.

Example Calculation

Imagine you source a kitchen gadget for $10.00. You sell it on Amazon for $35.00.

  • Referral Fee (15%): $5.25
  • Fulfillment Fee: $6.00
  • Shipping to Amazon: $1.00
  • Total Fees: $12.25
  • Total Investment (Product + Shipping): $11.00
  • Net Profit: $35.00 – $11.00 – $12.25 = $11.75
  • Profit Margin: 33.5%
  • ROI: 106.8%

How to Improve Your FBA Margins

To increase your profitability, consider these strategies:

  1. Reduce Packaging Size: Moving from a "Large Standard" to "Small Standard" size tier can save you dollars per unit in FBA fees.
  2. Optimize Inbound Shipping: Use Amazon's Partnered Carrier program for better rates on LTL (Less Than Truckload) shipments.
  3. Bundling: Sell multi-packs. Amazon charges one fulfillment fee for the bundle, rather than separate fees for individual items.
  4. Inventory Turnover: Avoid long-term storage fees by maintaining a healthy inventory health ratio.

function calculateFBAProfit() { // Get Inputs var sellingPrice = parseFloat(document.getElementById('sellingPrice').value) || 0; var productCost = parseFloat(document.getElementById('productCost').value) || 0; var shippingToAmazon = parseFloat(document.getElementById('shippingToAmazon').value) || 0; var referralFeePercent = parseFloat(document.getElementById('referralFeePercent').value) || 0; var fbaFee = parseFloat(document.getElementById('fbaFee').value) || 0; var otherFees = parseFloat(document.getElementById('otherFees').value) || 0; // Calculations var referralFeeAmount = sellingPrice * (referralFeePercent / 100); var totalAmazonFees = referralFeeAmount + fbaFee + otherFees; var totalExpenses = productCost + shippingToAmazon + totalAmazonFees; var netProfit = sellingPrice – totalExpenses; var netMargin = 0; if (sellingPrice > 0) { netMargin = (netProfit / sellingPrice) * 100; } var roi = 0; var totalInvestment = productCost + shippingToAmazon; if (totalInvestment > 0) { roi = (netProfit / totalInvestment) * 100; } // Update Display document.getElementById('resRevenue').innerText = '$' + sellingPrice.toFixed(2); document.getElementById('resCOGS').innerText = '-$' + productCost.toFixed(2); document.getElementById('resAmazonFees').innerText = '-$' + totalAmazonFees.toFixed(2); document.getElementById('resShipping').innerText = '-$' + shippingToAmazon.toFixed(2); document.getElementById('resNetProfit').innerText = '$' + netProfit.toFixed(2); document.getElementById('resMargin').innerText = netMargin.toFixed(1) + '%'; document.getElementById('resROI').innerText = roi.toFixed(1) + '%'; // Color logic for profit if (netProfit < 0) { document.getElementById('resNetProfit').style.color = '#c00'; } else { document.getElementById('resNetProfit').style.color = '#008a00'; } } // Run once on load to initialize window.onload = function() { calculateFBAProfit(); };

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