Amazon FBA Revenue Calculator
Calculate net profit, margins, and ROI for your Amazon FBA business
Understanding Amazon FBA Revenue Calculation
Running a successful Fulfillment by Amazon (FBA) business requires a deep understanding of your numbers. Unlike Merchant Fulfilled (FBM) listings, FBA involves complex fee structures that can significantly impact your bottom line.
Key Components of the FBA Calculator
- Item Selling Price: This is the retail price your customer pays on the Amazon marketplace.
- Cost of Goods Sold (COGS): The total price you paid to your supplier to manufacture the product, including packaging.
- Amazon Referral Fee: Amazon charges a percentage of the total sales price for every item sold. For most categories, this is 15%, but it varies from 8% to 45%.
- FBA Fulfillment Fee: This per-unit fee covers picking, packing, shipping, and customer service. It is determined by the weight and dimensions of the packaged product.
- Shipping to Amazon: The cost incurred to send your inventory from your location or supplier to an Amazon Fulfillment Center.
- Monthly Storage Fee: Fees charged by Amazon for storing your inventory in their warehouses, calculated based on the volume (cubic feet) your products occupy.
How to Interpret the Results
A healthy FBA business typically aims for a Net Profit Margin of 15-25%. If your margin is below 10%, you may be at risk of going into the red if ad spend (PPC) increases or if Amazon raises its storage fees. ROI (Return on Investment) is another critical metric; it tells you how much money you make relative to the capital you spent on inventory. High-volume sellers often look for an ROI of 100% or higher.
Example Calculation
Imagine you are selling a yoga mat for $35.00. Your manufacturing cost is $10.00. Amazon takes a 15% referral fee ($5.25). The fulfillment fee is $6.00, shipping to Amazon is $1.00, and storage is $0.25 per month.
Net Profit: $35.00 – $22.50 = $12.50
Margin: ($12.50 / $35.00) = 35.7%
ROI: ($12.50 / $10.00) = 125%