Amazon FBA Profit Calculator
Calculate your net margins, ROI, and total profit per unit after Amazon fees.
How to Calculate Amazon FBA Profit
Selling on Amazon via Fulfillment by Amazon (FBA) offers massive scale, but the fee structure can be complex. To accurately determine your success, you must look beyond the gross sale price. Our Amazon FBA Profit Calculator breaks down every cost associated with your listing.
Key Components of FBA Profitability
1. Cost of Goods Sold (COGS): This is the total price you paid to the manufacturer for the product, including any packaging and inspection fees.
2. Referral Fees: Amazon charges a percentage of the total sales price for every item sold. For most categories, this is 15%, but it can range from 8% to 45% depending on the niche.
3. FBA Fulfillment Fees: This is a flat fee per unit based on the weight and dimensions of your product. It covers picking, packing, and shipping the item to the customer.
4. PPC and Marketing: Unless you have high organic rankings, you will likely spend money on Amazon Advertising (PPC). Dividing your monthly ad spend by your total units sold gives you your marketing cost per unit.
Example Profit Calculation
If you sell a yoga mat for $40.00:
- Product Cost: $10.00
- Referral Fee (15%): $6.00
- FBA Fee: $7.50
- Inbound Shipping: $1.00
- Total Expenses: $24.50
- Net Profit: $15.50 per unit
- Profit Margin: 38.75%
Tips for Increasing Your Margins
To maximize your Amazon FBA business, consider optimizing your packaging to drop into a lower FBA size tier. Small changes in dimensions can save dollars per unit. Additionally, focus on improving your "ACOS" (Advertising Cost of Sale) to ensure your PPC spend isn't eating all your profits.