Amazon FBA Profit Calculator
Financial Breakdown
Total Expenses:
$0.00
Net Profit:
$0.00
Profit Margin:
0.00%
ROI (Return on Investment):
0.00%
How the Amazon FBA Profit Calculator Works
Launching a product on Amazon is an exciting venture, but understanding your real bottom line is critical for long-term success. Many sellers focus only on the selling price and product cost, forgetting the complex web of fees that Amazon charges for its "Fulfillment by Amazon" (FBA) service.
Key Components of FBA Profitability
- Amazon Referral Fee: This is essentially a commission paid to Amazon for every item sold. For most categories, this is 15% of the total selling price.
- FBA Fulfillment Fees: This covers the cost of Amazon picking, packing, and shipping your product to the customer, as well as providing customer service and handling returns.
- Landed Cost: This is the total cost to get your product into Amazon's warehouse. It includes the manufacturing cost (COGS) and the freight/shipping costs to the FBA center.
- Storage Fees: Amazon charges monthly fees based on the volume (cubic feet) your inventory occupies in their warehouses. These rates often increase during the Q4 holiday season.
Example Calculation
Imagine you are selling a Stainless Steel Water Bottle:
- Selling Price: $25.00
- Product Cost + Shipping: $7.00
- Referral Fee (15%): $3.75
- FBA Fee: $5.20
- Storage & PPC: $2.00
- Total Expenses: $17.95
- Net Profit: $7.05
- Profit Margin: 28.2%
- ROI: 100.7%
Why ROI and Margin Matter
While Net Profit tells you how much money you keep in your pocket per sale, Margin helps you understand how much "buffer" you have for price wars or unexpected costs. ROI (Return on Investment) is perhaps the most important metric for growth; it tells you how efficiently your capital is working. A high ROI means you can reinvest profits to buy more inventory faster, scaling your business exponentially.
Pro Tip: Always account for "Marketing/PPC" costs in your calculations. In today's competitive Amazon landscape, very few products sell organically without some level of paid advertising spend.