Commercial Mortgage Calculator

by

Amazon FBA Profit Calculator

Calculate your net profit, margins, and ROI after Amazon fees.

Revenue & Costs

Amazon Fees

Financial Breakdown

Net Profit Per Unit
$0.00
Profit Margin
0%
ROI
0%
Total Fees: $0.00
Total Landed Cost: $0.00
Break-even Price: $0.00
*Note: This calculation excludes VAT/Sales Tax and professional seller subscription fees ($39.99/mo).

Understanding Amazon FBA Profitability

Selling on Amazon via Fulfillment by Amazon (FBA) is a lucrative opportunity, but the fee structure can be complex. To succeed, you must understand your "landed cost" and how Amazon's various fees eat into your margins.

Key Components of 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 selling price.
  • Fulfillment Fee: This covers the cost of picking, packing, and shipping your product to the end customer. It is based on the weight and dimensions of your product.
  • Monthly Storage Fees: Amazon charges you for the space your inventory occupies in their fulfillment centers. These fees increase significantly during Q4 (October – December).
  • Landed Cost: This includes the manufacturing cost per unit plus the shipping cost to get the product from your supplier to Amazon's warehouse.

Example Calculation: The $25 Yoga Mat

Imagine you are selling a yoga mat for $25.00. Your manufacturing cost is $5.00, and shipping it to Amazon costs $1.00 per unit. Amazon takes a 15% referral fee ($3.75) and charges an FBA fee of $5.50.

Your total costs would be $5.00 + $1.00 + $3.75 + $5.50 = $15.25. Your net profit would be $9.75, resulting in a 39% profit margin and a 162% ROI (Return on Investment).

Strategy: Optimizing for Profit

To improve your Amazon FBA margins, consider the following:

  1. Reduce Packaging Size: If you can move your product into a smaller size tier (e.g., from Large Standard to Small Standard), you can save dollars per unit on fulfillment fees.
  2. Bundle Products: Since the fulfillment fee is charged per "pick," bundling two products into one SKU allows you to pay one fulfillment fee instead of two.
  3. Manage PPC Spend: High PPC (Pay-Per-Click) costs are the #1 profit killer for new sellers. Aim for an ACoS (Advertising Cost of Sale) that is lower than your profit margin.
function calculateFBAPrivateLabelProfit() { // Get Input Values var price = parseFloat(document.getElementById('fba_selling_price').value) || 0; var cost = parseFloat(document.getElementById('fba_product_cost').value) || 0; var shipIn = parseFloat(document.getElementById('fba_shipping_inbound').value) || 0; var refPct = parseFloat(document.getElementById('fba_referral_pct').value) || 0; var fulfill = parseFloat(document.getElementById('fba_fulfillment_fee').value) || 0; var storage = parseFloat(document.getElementById('fba_storage_fee').value) || 0; var ppc = parseFloat(document.getElementById('fba_ppc_cost').value) || 0; // Logic var referralFeeAmount = price * (refPct / 100); var totalAmazonFees = referralFeeAmount + fulfill + storage; var totalExpenses = cost + shipIn + totalAmazonFees + ppc; var netProfit = price – totalExpenses; var margin = (price > 0) ? (netProfit / price) * 100 : 0; var roi = (cost > 0) ? (netProfit / (cost + shipIn)) * 100 : 0; // Break-even Price (Algebraic: Price – (Price * Ref%) – Fulfillment – Storage – Cost – ShipIn – PPC = 0) // Price * (1 – Ref%) = Fulfillment + Storage + Cost + ShipIn + PPC var breakeven = (fulfill + storage + cost + shipIn + ppc) / (1 – (refPct / 100)); // Display Results document.getElementById('fba_net_profit').innerHTML = '$' + netProfit.toFixed(2); document.getElementById('fba_margin').innerHTML = margin.toFixed(1) + '%'; document.getElementById('fba_roi').innerHTML = roi.toFixed(1) + '%'; document.getElementById('fba_total_fees_display').innerHTML = '$' + totalAmazonFees.toFixed(2); document.getElementById('fba_landed_cost_display').innerHTML = '$' + (cost + shipIn).toFixed(2); document.getElementById('fba_breakeven_display').innerHTML = '$' + breakeven.toFixed(2); // Color logic for profit var profitEl = document.getElementById('fba_net_profit'); if (netProfit > 0) { profitEl.style.color = '#2e7d32'; } else { profitEl.style.color = '#d32f2f'; } } // Run once on load window.onload = function() { calculateFBAPrivateLabelProfit(); };

Leave a Comment