Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Amazon FBA products.
How to Calculate Amazon FBA Profitability
Running a successful Amazon FBA (Fulfillment by Amazon) business requires a deep understanding of your numbers. Unlike traditional e-commerce, Amazon charges several specific fees that can significantly impact your bottom line. To find your true profit, you must subtract all product costs and Amazon service fees from your final selling price.
Understanding the Key Components
- Selling Price: The final price the customer pays on Amazon.com.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit of your product.
- Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total selling price.
- Fulfillment Fee: The flat fee per unit for Amazon to pick, pack, and ship your product. This is based on the weight and dimensions of the item.
- Storage Fees: Monthly costs based on the volume (cubic feet) your inventory occupies in Amazon fulfillment centers.
Example Calculation
Imagine you sell a yoga mat for $40.00. Your manufacturing cost is $10.00, and shipping it to Amazon costs $2.00 per unit.
Amazon's referral fee (15%) would be $6.00. If the FBA fulfillment fee is $7.50 and storage is $0.50, your total expenses are $26.00 ($10 + $2 + $6 + $7.50 + $0.50).
Your net profit would be $14.00 per unit ($40.00 – $26.00), resulting in a 35% profit margin and a 116% ROI ($14 profit / $12 total investment).
Why Profit Margin Matters
SEO experts and top sellers recommend aiming for a profit margin of at least 25-30% after all fees. This provides a buffer for PPC (Pay-Per-Click) advertising costs, returns, and price fluctuations in the marketplace.