Amazon FBA Profit Calculator
Net Profit:
$0.00
Profit Margin:
0%
Return on Investment (ROI):
0%
Understanding Your Amazon FBA Profit Margins
Selling on Amazon FBA (Fulfillment by Amazon) is a lucrative opportunity, but the fee structure can be complex. To succeed, you must calculate your "Net Profit" after all Amazon-related deductions. A healthy profit margin for private label sellers typically falls between 20% and 30%.
Key Fee Definitions:
- Referral Fee: This is the commission Amazon takes for every item sold. For most categories, this is 15% of the total selling price.
- Fulfillment Fee: This flat fee covers the cost of picking, packing, and shipping your product to the customer. It varies based on product weight and dimensions.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit of your product.
- PPC Spend per Unit: If you use Amazon Advertising, divide your total monthly ad spend by the total units sold to find your per-unit marketing cost.
Example Calculation:
Imagine you sell a yoga mat for $40.00. Your costs are:
- Product Cost: $10.00
- Shipping to Warehouse: $2.00
- Amazon Referral Fee (15%): $6.00
- Fulfillment Fee: $7.50
- Storage/PPC: $2.50
Total Expenses: $28.00 | Net Profit: $12.00 | Profit Margin: 30%