Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA products.
How to Calculate Amazon FBA Profit Correcty
Selling on Amazon using Fulfillment by Amazon (FBA) can be highly lucrative, but it comes with a complex fee structure that can quickly erode your margins. To succeed, you must understand every cent that leaves your pocket from the factory to the customer's doorstep.
Understanding the Key Inputs
- Selling Price: The final price the customer pays on Amazon.com.
- COGS (Cost of Goods Sold): The price you pay your manufacturer per unit, including packaging.
- Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15%.
- Fulfillment Fee: This covers the picking, packing, and shipping of your product to the customer. It varies based on weight and dimensions.
- Storage Fees: Monthly costs for keeping your inventory in Amazon warehouses. These increase during Q4 (October – December).
The Formula for FBA Success
The calculation behind this tool is:
Net Profit = Selling Price – (COGS + Shipping to Amazon + Referral Fee + Fulfillment Fee + Storage Fee + PPC + Misc)
Example Calculation
Imagine you sell a yoga mat for $35.00. Your manufacturing cost is $10.00. Shipping to Amazon is $1.50 per unit. Amazon takes a 15% referral fee ($5.25) and an FBA fulfillment fee of $6.00. If you spend $3.00 per unit on PPC ads, your total cost is $25.75. Your net profit would be $9.25 per unit, with a 26.4% margin and a 92.5% ROI.
Why ROI and Margin Matter
While Net Profit tells you how much money you keep, Margin tells you how healthy your business is against price wars. ROI (Return on Investment) tells you how hard your capital is working. Most successful FBA sellers aim for at least a 100% ROI to ensure they can reinvest in more inventory and scale their brand.