Amazon FBA Profit Calculator
Results per Unit
How to Calculate Amazon FBA Profitability
Success on Amazon depends on understanding your "true" margins. Many sellers only look at the product cost and Amazon's referral fee, forgetting the heavy weight of fulfillment fees and storage costs. This calculator helps you break down every cent of your Amazon FBA business.
The Core Components of FBA Fees
1. Referral Fees: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total sales price.
2. Fulfillment Fees (FBA): This covers the picking, packing, and shipping of your orders. It is based on the weight and dimensions of your product.
3. Storage Fees: Amazon charges for the space your inventory occupies in their fulfillment centers. These fees typically increase during the Q4 holiday season.
Example Calculation
Imagine you sell a yoga mat for $40.00. Your manufacturing cost is $10.00 and shipping to Amazon costs $2.00.
- Referral Fee (15%): $6.00
- FBA Fulfillment Fee: $7.50
- Storage & Misc: $0.50
- Total Expenses: $10 + $2 + $6 + $7.50 + $0.50 = $26.00
- Net Profit: $14.00
- Profit Margin: 35%
Strategies to Improve FBA Margins
To increase your profit, consider optimizing your packaging to move into a smaller size tier, which significantly reduces fulfillment fees. Additionally, monitor your IPI (Inventory Performance Index) score to avoid expensive long-term storage fees.