Amazon Seller Profit Calculator
Calculate your FBA or FBM net margins and ROI instantly.
How to Calculate Amazon Seller Profitability
Selling on Amazon can be highly lucrative, but understanding your true net profit is essential for long-term success. Many new sellers focus solely on the sale price, forgetting that Amazon takes a significant cut through various fees. Our Amazon FBA Profit Calculator helps you visualize the "take-home" pay after all expenses are accounted for.
Understanding the Key Metrics
Cost of Goods (COGS): This is the total cost to manufacture or purchase your product. It should include factory costs, packaging, and any quality inspection fees.
Referral Fees: Amazon typically charges a percentage of the total sale price (usually 8% to 15% depending on the category). This is essentially their "commission" for providing the marketplace.
FBA Fees: If you use "Fulfillment by Amazon," these fees cover storage, picking, packing, and shipping to the customer. These are determined by the weight and dimensions of your product.
Example Calculation: Private Label Product
- Sale Price: $40.00
- Product Cost: $10.00
- FBA Fees: $6.50
- Referral Fee (15%): $6.00
- Marketing (PPC): $4.00
- Total Expenses: $26.50
- Net Profit: $13.50
- Profit Margin: 33.75%
3 Tips to Increase Your Amazon Profit Margins
- Optimize Packaging: Reducing the size or weight of your product by even an inch or an ounce can move you into a lower FBA fee tier, saving you dollars on every single sale.
- Bundle Products: By bundling two items together, you pay the FBA shipping fee once instead of twice, significantly increasing the margin per order.
- Negotiate with Suppliers: Once you have a steady sales volume, renegotiate your unit cost. A $0.50 reduction in COGS goes directly to your bottom line.