Amazon FBA Profit Calculator
Mastering Your Amazon FBA Margins: A Complete Guide
Selling on Amazon via Fulfillment by Amazon (FBA) is an excellent way to scale an e-commerce business, but the complexity of the fee structure often leaves sellers wondering about their actual take-home pay. Using an Amazon FBA Profit Calculator is essential for selecting winning products and ensuring your business remains sustainable.
How to Calculate Amazon FBA Profit
To find your true profit, you must subtract all operational and platform costs from your retail price. The formula is:
Net Profit = Selling Price – Product Cost – Amazon Referral Fee – FBA Fulfillment Fee – Shipping to Amazon – Storage Fees – PPC/Marketing
Key Metrics Explained
- Referral Fee: Amazon charges a percentage of the total sales price. For most categories, this is 15%.
- FBA Fulfillment Fee: This covers picking, packing, and shipping your product to the customer. It is based on the weight and dimensions of the item.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit of your product.
- ROI (Return on Investment): Calculated as (Net Profit / Product Cost) * 100. This tells you how hard your capital is working for you.
Example Calculation
Imagine you sell a Yoga Mat for $35.00. Your manufacturing cost is $10.00, and it costs $1.00 to ship it to an Amazon warehouse. Amazon takes a 15% referral fee ($5.25) and charges $6.00 for fulfillment. After $2.00 in PPC advertising, your net profit is $10.75, resulting in a 30.7% margin and a 107.5% ROI.
Frequently Asked Questions
Most experienced sellers aim for a "Rule of Three": 1/3 for product costs, 1/3 for Amazon fees, and 1/3 for profit. A net margin of 20-30% is considered healthy.
Do storage fees change?Yes, Amazon increases storage fees during the peak Q4 season (October to December). Be sure to adjust your calculations during these months.