Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Amazon FBA products.
Understanding Your Amazon FBA Profit Margins
Selling on Amazon FBA (Fulfillment by Amazon) is a powerful way to scale an e-commerce business, but the fees can be complex. To succeed, you must look beyond the "Sales Price" and understand your true bottom line. This calculator helps you breakdown every penny involved in your transaction.
Key Components of the Calculation
- Referral Fee: This is Amazon's commission for selling on their platform. For most categories, this is 15%, but it can range from 8% to 45%.
- Fulfillment (FBA) Fee: The cost Amazon charges to pick, pack, and ship your product. This depends heavily on the weight and dimensions of your item.
- COGS (Cost of Goods Sold): What you paid the manufacturer to produce the item.
- ROI (Return on Investment): Calculated as (Net Profit / Cost of Investment). It tells you how much money you are making back for every dollar spent on inventory.
Example Profit Scenario
Imagine you are selling a yoga mat for $35.00. Your manufacturing cost is $8.00, and shipping it to Amazon warehouses costs $1.50 per unit. With a 15% referral fee ($5.25) and an FBA fulfillment fee of $7.00, your total costs before storage and ads would be $21.75.
In this case, your Net Profit would be $13.25, resulting in a 37.8% Profit Margin and a 165% ROI. Keeping your ROI above 100% is often considered a healthy benchmark for private label sellers.
Why You Need This Tool
Many sellers fail because they ignore "hidden" costs like monthly storage fees or PPC (Pay-Per-Click) advertising. By using this Amazon FBA calculator, you can simulate different price points to see how they impact your ability to run a sustainable business.