Amazon FBA Profit Calculator
Results Summary
Total Amazon Fees:
$0.00
Net Profit:
$0.00
Profit Margin:
0.00%
ROI (Return on Investment):
0.00%
How to Use the Amazon FBA Profit Calculator
Selling on Amazon through Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but the fee structure can be complex. This calculator helps you determine your actual take-home pay after all Amazon expenses and sourcing costs are deducted.
Understanding the Fee Components
- Referral Fee: Usually around 15% for most categories, this is Amazon's commission for every unit sold.
- Fulfillment Fee: A flat fee per unit based on weight and dimensions that covers picking, packing, and shipping to the customer.
- Monthly Storage Fee: Calculated based on the volume of space your inventory occupies in Amazon fulfillment centers.
FBA Profit Formula
Our calculator uses the following formula to determine your bottom line:
Net Profit = Sale Price – (Product Cost + Shipping to Amazon + Referral Fee + FBA Fee + Storage Fee)
Example Calculation
If you sell a yoga mat for $40.00, with a sourcing cost of $10.00 and shipping to Amazon at $2.00. Assuming a 15% referral fee ($6.00), a fulfillment fee of $7.50, and storage of $0.50:
- Total Costs: $10 + $2 + $6 + $7.50 + $0.50 = $26.00
- Net Profit: $40.00 – $26.00 = $14.00
- Profit Margin: 35%
- ROI: 140%
Strategies to Increase Your FBA Margin
To improve your profitability, consider these three tactics:
- Optimize Packaging: Moving down one size tier in Amazon's weight/dimension categories can save dollars per unit on fulfillment fees.
- Increase Inventory Turnover: High storage fees occur when items sit in warehouses. Aim for a 30-60 day inventory supply.
- Bulk Sourcing: Lower your "Cost of Goods Sold" (COGS) by ordering larger quantities to negotiate better manufacturing and freight rates.