Gross to Net Salary Calculator

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Amazon FBA Profit Calculator

Calculate your net profit, ROI, and margins for Fulfillment by Amazon

Product & Costs

Amazon Fees

Results Summary

Net Profit Per Unit
$10.24
Net Margin
34.14%
ROI
136.53%

Breakdown

Total Revenue: $29.99
Total Amazon Fees: -$10.35
Total Product Costs: -$9.40
Total Expenses: $19.75

Understanding Amazon FBA Profitability

Selling on Amazon via Fulfillment by Amazon (FBA) offers massive scale, but the fee structure can be complex. To ensure your business is sustainable, you must look beyond just the "sale price" and account for every variable cost that eats into your margin.

Key Components of the FBA Calculation

  • Referral Fee: This is essentially Amazon's commission for selling on their platform. For most categories, this is 15% of the total sales price.
  • Fulfillment Fee: This covers the cost of picking, packing, and shipping your product to the customer. This fee varies significantly based on the dimensions and weight of your item.
  • Monthly Storage Fees: Amazon charges you for every cubic foot of space your inventory occupies in their warehouses. Rates increase significantly during Q4 (October–December).
  • COGS (Cost of Goods Sold): The price you pay your manufacturer per unit, including any taxes or packaging.

FBA Profit Example

Let's say you are selling a Kitchen Gadget:

Item Cost
Sale Price $25.00
Product Cost + Shipping $6.00
Amazon Referral Fee (15%) $3.75
Fulfillment Fee $5.10
Net Profit $10.15

Tips for Improving Your FBA Margins

To increase your profitability, consider these three strategies:

  1. Optimize Packaging: Moving from a "Large Standard" size tier to "Small Standard" can save you dollars per unit in fulfillment fees.
  2. Improve Inventory Turnover: High storage fees, especially long-term storage fees, can turn a profitable product into a loss-maker. Aim for a 30-60 day inventory supply.
  3. Negotiate with Suppliers: As your volume increases, renegotiate your COGS. Even a $0.50 reduction in unit cost can lead to thousands in extra annual profit.
function calculateFBAProfit() { // Get input values var price = parseFloat(document.getElementById('salePrice').value) || 0; var cogs = parseFloat(document.getElementById('costPerUnit').value) || 0; var shipToAmz = parseFloat(document.getElementById('shippingToAmazon').value) || 0; var refPercent = parseFloat(document.getElementById('referralFeePercent').value) || 0; var fbaFee = parseFloat(document.getElementById('fbaFee').value) || 0; var storage = parseFloat(document.getElementById('storageFee').value) || 0; var ppc = parseFloat(document.getElementById('ppcSpend').value) || 0; // Calculations var referralFeeAmount = price * (refPercent / 100); var totalAmzFees = referralFeeAmount + fbaFee + storage; var totalProductCosts = cogs + shipToAmz + ppc; var totalExpenses = totalAmzFees + totalProductCosts; var netProfit = price – totalExpenses; var margin = 0; if (price > 0) { margin = (netProfit / price) * 100; } var roi = 0; if ((cogs + shipToAmz) > 0) { roi = (netProfit / (cogs + shipToAmz)) * 100; } // Update UI document.getElementById('resNetProfit').innerText = '$' + netProfit.toFixed(2); document.getElementById('resMargin').innerText = margin.toFixed(2) + '%'; document.getElementById('resROI').innerText = roi.toFixed(2) + '%'; document.getElementById('resRevenue').innerText = '$' + price.toFixed(2); document.getElementById('resAmazonFees').innerText = '-$' + totalAmzFees.toFixed(2); document.getElementById('resProductCosts').innerText = '-$' + totalProductCosts.toFixed(2); document.getElementById('resTotalExpenses').innerText = '$' + totalExpenses.toFixed(2); // Dynamic color for profit if (netProfit < 0) { document.getElementById('resNetProfit').style.color = '#c62828'; document.getElementById('resMargin').style.color = '#c62828'; } else { document.getElementById('resNetProfit').style.color = '#2e7d32'; document.getElementById('resMargin').style.color = '#2e7d32'; } } // Initial calculation window.onload = function() { calculateFBAProfit(); };

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