Amazon FBA Profit & Margin Calculator
Total Amazon Fees: $0.00
Total Landed Cost: $0.00
Net Profit: $0.00
Profit Margin: 0%
ROI: 0%
Understanding Your Amazon FBA Profitability
Selling on Amazon FBA (Fulfillment by Amazon) is a lucrative opportunity, but the fee structure can be complex. To ensure your private label or wholesale business is sustainable, you must look beyond just the "Selling Price" and "Buy Cost."
Key Metrics in the FBA Calculation
- Referral Fee: This is essentially Amazon's commission for bringing you the customer. For most categories, this is 15% of the total sales price.
- FBA Fulfillment Fee: This covers the picking, packing, and shipping of your product to the customer. This varies based on the size and weight of your item.
- Landed Cost: This includes the manufacturing cost per unit plus the freight cost to get the item into an Amazon fulfillment center.
- Profit Margin: The percentage of the selling price that is actual profit after all expenses. A healthy FBA margin is typically between 20% and 30%.
Example Calculation: Kitchen Gadget
If you sell a kitchen gadget for $25.00:
- Product Cost: $6.00
- Shipping to Amazon: $1.00
- Referral Fee (15%): $3.75
- FBA Fee: $5.50
- Storage/Misc: $0.25
Total Costs: $16.50. Net Profit: $8.50. Margin: 34%. This would be considered a high-performing product.
Tips to Increase Your FBA Margins
If your margins are slim (under 15%), consider optimizing your packaging to reduce the FBA size tier, negotiating lower COGS with your supplier, or increasing your price by just $1-2, which can often double your net profit without significantly impacting conversion rates.