Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Amazon FBA products.
Understanding Your Amazon FBA Profitability
Calculating your Amazon FBA (Fulfillment by Amazon) profit is critical for the survival of your e-commerce business. Many sellers focus solely on revenue, but Amazon's complex fee structure can quickly erode margins if not properly accounted for.
Key Fees Explained
- Referral Fee: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total sales price.
- Fulfillment Fee (Pick & Pack): This covers the cost of Amazon employees picking, packing, and shipping your product to the customer. It depends on the size and weight of your item.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit from your supplier.
- PPC Spend: Your marketing costs per unit. To find this, divide your total monthly ad spend by the number of units sold via ads and organically combined.
The Formula for FBA Profit
The basic formula used by our calculator is:
Net Profit = Sale Price - COGS - Shipping to Amazon - Referral Fee - Fulfillment Fee - Storage Fee - Ad Spend - Misc Costs
Example Calculation
Imagine you are selling a yoga mat for $35.00.
- Unit Cost: $10.00
- Shipping to Amazon: $1.50
- Referral Fee (15%): $5.25
- Fulfillment Fee: $6.50
- Ad Spend per unit: $3.00
In this scenario, your total expenses are $26.25. Your net profit per unit would be $8.75, resulting in a 25% profit margin and an 87.5% ROI.
How to Improve Your Margins
If your results are lower than expected, consider these three levers:
- Reduce COGS: Negotiate with your supplier or order in bulk to lower the per-unit price.
- Optimize Packaging: Moving from a "Large Standard" size tier to "Small Standard" by reducing box dimensions can save dollars on every single shipment.
- Improve PPC Efficiency: Focus on high-converting keywords to lower your advertising cost per sale (ACoS).