Estimate your net profit, margins, and ROI for FBA listings.
Amazon Referral Fee:
Total Amazon Fees:
Total Expenses:
Net Profit:
Net Margin:
ROI (Return on Investment):
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, sellers must account for every penny that goes into the product cycle.
Key Metrics Explained
Unit Cost (COGS): The total price you paid to your manufacturer to produce one unit.
Referral Fee: This is Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total sales price.
Fulfillment Fee: The cost Amazon charges to pick, pack, and ship your product to the customer. This depends on the weight and dimensions of the product.
ROI (Return on Investment): Calculated as (Net Profit / Product Cost). It tells you how much money you are making relative to what you spent on inventory.
Example Calculation
Suppose you sell a yoga mat for $40.00. Your manufacturing cost is $10.00. Shipping to the Amazon warehouse is $1.00. The FBA fulfillment fee is $6.00, and the referral fee (15%) is $6.00.
Total Expenses: $10 (Cost) + $1 (Shipping) + $6 (FBA) + $6 (Referral) = $23.00 Net Profit: $40.00 – $23.00 = $17.00 Net Margin: 42.5% ROI: 170%
Tips to Improve FBA Margins
Optimize Packaging: Moving into a smaller size tier can save you dollars on every FBA fulfillment fee.
Bulk Shipping: Lower your "per unit" shipping cost by sending larger sea shipments rather than air express.
Monitor Storage Fees: Amazon increases storage fees during Q4 (October–December). Ensure your inventory turnover is high to avoid long-term storage fees.
function calculateFBAProfit() {
var salePrice = parseFloat(document.getElementById("salePrice").value) || 0;
var productCost = parseFloat(document.getElementById("productCost").value) || 0;
var shippingToAmazon = parseFloat(document.getElementById("shippingToAmazon").value) || 0;
var fulfillmentFee = parseFloat(document.getElementById("fulfillmentFee").value) || 0;
var referralFeePercent = parseFloat(document.getElementById("referralFeePercent").value) || 0;
var miscCosts = parseFloat(document.getElementById("miscCosts").value) || 0;
if (salePrice 0) ? (netProfit / (productCost + shippingToAmazon)) * 100 : 0;
// Display Results
document.getElementById("resReferral").innerHTML = "$" + referralFeeAmount.toFixed(2);
document.getElementById("resTotalFees").innerHTML = "$" + totalAmazonFees.toFixed(2);
document.getElementById("resTotalExpenses").innerHTML = "$" + totalExpenses.toFixed(2);
var profitEl = document.getElementById("resNetProfit");
profitEl.innerHTML = "$" + netProfit.toFixed(2);
if (netProfit >= 0) {
profitEl.className = "fba-result-value profit-positive";
} else {
profitEl.className = "fba-result-value profit-negative";
}
document.getElementById("resMargin").innerHTML = margin.toFixed(2) + "%";
document.getElementById("resROI").innerHTML = roi.toFixed(2) + "%";
// Show result container
document.getElementById("fbaResults").style.display = "block";
}