Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for FBA listings
Understanding Your Amazon FBA Profit Margins
Selling on Amazon via the Fulfillment by Amazon (FBA) program offers massive scale, but it comes with a complex fee structure that can quickly erode your margins. Using an Amazon FBA Profit Calculator is the only way to ensure your product selection is truly viable.
Key Components of the FBA Calculation
- Cost of Goods Sold (COGS): This is the manufacturing or wholesale cost per unit.
- Amazon Referral Fee: This is essentially a commission. For most categories, this is 15% of the total sales price.
- Fulfillment Fees: These are flat fees per unit based on the weight and dimensions of your product. This covers picking, packing, and shipping to the customer.
- Storage Fees: Amazon charges for the space your inventory occupies in their warehouses, billed monthly.
What is a Good Profit Margin?
In the world of Amazon FBA, a "healthy" margin is typically considered to be 25% or higher. An ROI (Return on Investment) of 100% is the gold standard for private label sellers, meaning for every dollar you spend on inventory and shipping, you make one dollar back in profit.
FBA Profitability Example
Imagine you source a kitchen gadget for $5.00 and ship it to Amazon for $1.00. You sell it for $25.00.
– Referral Fee (15%): $3.75
– Fulfillment Fee: $5.50
– Monthly Storage: $0.10
Total Fees: $9.35
Your total cost per unit would be $15.35 ($6.00 landed cost + $9.35 fees), leaving you with a $9.65 profit. This results in a 38.6% margin and a 160% ROI—a very strong product!