Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA sales
Results Summary
Total Revenue:
$0.00
Amazon Fees Total:
$0.00
Landed Costs:
$0.00
Net Profit per Unit
$0.00
Profit Margin
0.00%
ROI
0.00%
Understanding Amazon FBA Profit Margins
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to reach millions of customers, but the fee structure can be complex. To run a sustainable business, you must look beyond just the "sale price" and account for every variable expense involved in the lifecycle of your product.
Key Components of FBA Profitability
- Referral Fees: This is Amazon's "commission" for selling on their platform. It usually ranges from 8% to 15% depending on the category.
- Fulfillment Fees: This covers the cost of picking, packing, shipping, and providing customer service for your products. This is determined by the weight and dimensions of your item.
- Monthly Storage Fees: Amazon charges you for the space your inventory occupies in their warehouses. Rates increase significantly during the Q4 holiday season.
- Landed Costs: This includes the manufacturing cost (COGS) plus the freight/shipping costs required to get the inventory into an Amazon warehouse.
FBA Profit Calculation Example
Let's look at a realistic scenario for a standard-sized consumer product:
| Expense Item | Amount |
|---|---|
| Sale Price | $25.00 |
| Product Cost + Shipping | -$7.50 |
| Referral Fee (15%) | -$3.75 |
| FBA Fulfillment Fee | -$5.20 |
| Net Profit | $8.55 |
How to Improve Your Margins
If your profit margins are below 20%, consider the following strategies:
- Optimize Packaging: Reducing the dimensions of your product by even half an inch can sometimes drop it into a lower FBA size tier, saving you dollars per unit.
- Bundle Products: Since FBA fees are charged per unit, bundling two items together allows you to pay one fulfillment fee for two sales.
- Negotiate with Suppliers: As your volume grows, target a 5-10% reduction in unit costs.
- Monitor PPC ACOS: Ensure your Advertising Cost of Sales (ACOS) is not eating up your entire profit margin. If your "organic" sales aren't covering the cost of "paid" sales, your business isn't healthy.