Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA sales.
Total Revenue:
$0.00
Total Amazon Fees:
$0.00
Total Landed Cost:
$0.00
Net Profit:
$0.00
Profit Margin:
0%
Return on Investment (ROI):
0%
Understanding Amazon FBA Profitability
Selling on Amazon through the Fulfillment by Amazon (FBA) program offers massive reach, but the fee structure can be complex. To remain profitable, you must account for every penny that leaves your pocket from the factory to the customer's doorstep.
Key Components of the FBA Calculation
- Cost of Goods Sold (COGS): This is the manufacturing cost per unit. It's the baseline for your investment.
- Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total selling price.
- Fulfillment Fee: This covers picking, packing, and shipping the item to the buyer. This depends heavily on the weight and dimensions of your product.
- Landed Cost: The sum of your manufacturing cost and shipping cost to get the product into Amazon's warehouses.
Realistic Example Calculation
Imagine you are selling a yoga mat for $35.00. Your manufacturing cost is $10.00 and shipping to Amazon costs $2.00 per unit. Amazon takes a 15% referral fee ($5.25) and charges an FBA fulfillment fee of $6.00. You also spend about $3.00 per unit on PPC advertising.
Total Expenses: $10 (Product) + $2 (Ship) + $5.25 (Ref) + $6 (FBA) + $3 (PPC) = $26.25.
Net Profit: $35.00 – $26.25 = $8.75.
Profit Margin: 25%.
How to Increase Your FBA Margins
The easiest ways to boost profit are to negotiate lower unit costs with suppliers, optimize packaging to fit into smaller FBA size tiers (reducing fulfillment fees), and improving your PPC conversion rate to lower your marketing cost per unit.