Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Fulfillment by Amazon products.
Total Revenue:
$0.00
Total Amazon Fees:
$0.00
Total Product & Logistics Costs:
$0.00
Net Profit (Per Unit):
$0.00
Net Margin:
0.00%
Return on Investment (ROI):
0.00%
Understanding Amazon FBA Profitability
Selling on Amazon via the Fulfillment by Amazon (FBA) program offers massive scale, but it comes with a complex fee structure. To run a sustainable business, you must look beyond your "gross sales" and focus strictly on your net profit after all deductions.
Key Metrics Explained
- Referral Fees: This is Amazon's "commission." For most categories, this is 15% of the total sales price.
- FBA Fulfillment Fees: This covers picking, packing, and shipping your product to the customer. It is based on the weight and dimensions of your product.
- Storage Fees: Amazon charges for the space your inventory occupies in their warehouses. This cost fluctuates depending on the time of year (higher in Q4).
- Cost of Goods Sold (COGS): The total cost to manufacture or purchase one unit of your product.
- ROI (Return on Investment): This shows how much money you make relative to what you spent on inventory and logistics. A healthy ROI is typically 100% or higher.
Example Calculation
Imagine you sell a Yoga Mat for $35.00. Your manufacturing cost is $10.00, and it costs $2.00 to ship it to Amazon's warehouse. Amazon takes a 15% referral fee ($5.25) and charges $6.00 for the FBA fulfillment fee. After adding $1.00 for PPC advertising:
- Revenue: $35.00
- Total Costs: $10 (COGS) + $2 (Ship) + $5.25 (Ref) + $6 (FBA) + $1 (Ads) = $24.25
- Net Profit: $10.75
- Net Margin: 30.7%
How to Improve Your Margins
Successful Amazon sellers constantly optimize their numbers. You can increase profit by negotiating better rates with suppliers, reducing product weight to drop into a lower FBA fee tier, or improving your PPC conversion rate to lower your "Ad Spend per unit." Always use a calculator before launching a product to ensure there is enough "meat on the bone" to cover unexpected costs.