Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Amazon FBA products.
Estimated Financial Breakdown
Total Revenue:
Total Fees & Expenses:
Net Profit per Unit:
Profit Margin:
Return on Investment (ROI):
Understanding Amazon FBA Fees
Selling on Amazon through the Fulfillment by Amazon (FBA) program involves various costs that can significantly impact your bottom line. To ensure your business remains profitable, you must account for more than just the cost of goods.
Key Components of FBA Profitability:
- Referral Fee: Amazon charges a percentage of the total sales price for every item sold. For most categories, this is 15%.
- Fulfillment Fee: A per-unit fee for picking, packing, shipping, and providing customer service for your products. This is based on the weight and dimensions of the item.
- Storage Fees: Monthly fees based on the volume (cubic feet) your inventory occupies in Amazon fulfillment centers. These fees increase during the Q4 holiday season.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase your product from a supplier.
- Shipping to Amazon: The cost of transporting your inventory from your warehouse or supplier to an Amazon Fulfillment Center.
Example Calculation
Imagine you sell a Yoga Mat for $40.00. Your manufacturing cost is $10.00 and shipping to Amazon costs $2.00. If the FBA fulfillment fee is $7.00 and the referral fee is 15% ($6.00), your total basic expenses are $25.00. Adding $1.00 for storage and returns leaves you with a $14.00 profit per unit, a 35% margin, and a 140% ROI on your manufacturing cost.
Why ROI Matters More Than Margin
While profit margin tells you how much of your revenue you keep, ROI (Return on Investment) tells you how hard your money is working. A high ROI means you can reinvest your capital faster to grow your Amazon business, even if the per-unit margin is lower.