Amazon FBA Profit Calculator
Estimate your net margins and ROI after all Amazon fees
Amazon Referral Fee:
-$0.00
Total Amazon Fees:
-$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 using Fulfillment by Amazon (FBA) offers massive scale, but the fee structure can be complex. To remain profitable, you must account for every penny that Amazon deducts from your gross sales. This calculator helps you navigate those numbers to find your true "take-home" pay per unit.
Key Factors in the Calculation
- COGS (Cost of Goods Sold): This is the manufacturing or wholesale cost of your product.
- Amazon Referral Fee: Essentially a commission for selling on their platform. For most categories, this is 15% of the total sales price.
- Fulfillment Fee: A flat fee per unit that covers picking, packing, and shipping to the customer. This depends on the weight and dimensions of your product.
- Storage Fees: Monthly fees based on the volume (cubic feet) your inventory occupies in Amazon's warehouses.
Example Calculation:
Selling Price: $40.00
Product Cost: $10.00
Amazon Referral (15%): $6.00
FBA Fee: $5.50
Shipping to Warehouse: $0.50
Net Profit: $18.00 (45% Margin)
Selling Price: $40.00
Product Cost: $10.00
Amazon Referral (15%): $6.00
FBA Fee: $5.50
Shipping to Warehouse: $0.50
Net Profit: $18.00 (45% Margin)
How to Improve Your FBA Margins
If your results show a margin below 20%, your business might be at risk from unexpected costs like returns or PPC advertising. To improve margins, consider:
- Optimizing Packaging: Moving from a "Large Standard" to a "Small Standard" size tier can save dollars on every single shipment.
- Bundling: Selling two units together as a "2-pack" doubles your revenue while only incurring one FBA fulfillment fee.
- Negotiating COGS: As your volume increases, work with your supplier to lower the unit price.
Is Your ROI Healthy?
While Profit Margin tells you how much of the sales price you keep, ROI (Return on Investment) tells you how hard your money is working. Most successful FBA sellers aim for at least 100% ROI, meaning for every $1 spent on inventory, they receive that $1 back plus an additional $1 in profit.