Amazon FBA Profit Calculator
How to Calculate Amazon FBA Profits Accurately
Selling on Amazon FBA (Fulfillment by Amazon) is a powerful way to scale an e-commerce business, but the fee structure can be complex. To ensure your private label or wholesale business is sustainable, you must understand the difference between your gross revenue and your net take-home pay.
This Amazon FBA Profit Calculator helps you break down the three main pillars of Amazon expenses:
- Referral Fees: This is Amazon's "commission" for selling on their platform. It is typically 15% for most categories, though it can range from 8% to 45%.
- Fulfillment Fees: These are the costs for Amazon to pick, pack, and ship your item. These depend entirely on the weight and dimensions of your product.
- Operating Costs: This includes your COGS (Cost of Goods Sold), shipping costs to send inventory to Amazon warehouses, and your PPC advertising spend.
Example Calculation: The $25 Home Decor Item
Imagine you are selling a decorative vase for $25.00. Your manufacturing cost per unit is $5.00 and it costs $1.00 to ship it to Amazon's warehouse.
- Referral Fee (15%): $3.75
- Fulfillment Fee (Standard Size): $5.40
- Storage Fee: $0.15
- Total Fees: $9.30
- Total Expenses: $5.00 (COGS) + $1.00 (Ship) + $9.30 (Fees) = $15.30
- Net Profit: $25.00 – $15.30 = $9.70
- Profit Margin: 38.8%
Key Metrics to Track
Profit Margin: Calculated as (Net Profit / Selling Price). A healthy FBA margin is usually between 20% and 30% after all expenses, including PPC.
ROI (Return on Investment): Calculated as (Net Profit / Total Cost). This tells you how hard your capital is working. If you spend $10 to make $10 profit, your ROI is 100%.