Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for FBA listings.
Understanding Amazon FBA Profit Calculation
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but understanding your true margins is critical for survival. This calculator helps you breakdown every cost associated with your listing to ensure you aren't selling at a loss.
Key Components of FBA Fees
- Referral Fee: This is essentially Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
- Fulfillment Fee: A flat fee per unit based on the weight and dimensions of your product. This covers picking, packing, and shipping to the customer.
- Product Cost (COGS): The total amount you paid to the manufacturer per unit.
- Inbound Shipping: The cost to ship your products from your warehouse or manufacturer to an Amazon Fulfillment Center.
FBA Profit Example
Imagine you are selling a yoga mat for $35.00.
- Product Cost: $10.00
- Inbound Shipping: $1.50
- Amazon Referral Fee (15%): $5.25
- FBA Fulfillment Fee: $6.00
- Monthly Storage: $0.25
In this scenario, your Total Expenses are $23.00, leaving you with a Net Profit of $12.00. This represents a 34% profit margin and a 104% ROI.
How to Improve Your FBA Margins
To increase your profit, consider optimizing your packaging to move into a smaller size tier, which can significantly reduce your FBA Fulfillment fees. Additionally, sourcing in larger volumes can lower your per-unit product cost and inbound shipping rates.