Amazon FBA Price Calculator
Calculate your potential selling price, factoring in Amazon's fees and your costs.
Your Product & Costs
Estimated Selling Price
Profit per unit will appear here.
Return on Investment will appear here.
Understanding Your Amazon FBA Pricing
Selling on Amazon through the Fulfillment by Amazon (FBA) program offers convenience, but it's crucial to price your products strategically to ensure profitability. This calculator helps you determine a profitable selling price by considering all associated costs and your desired profit margin.
Key Cost Components:
- Product Cost: The amount you pay to source or manufacture your product.
- Shipping to Amazon: The cost of getting your product from your supplier to an Amazon fulfillment center.
- Amazon Referral Fee: A percentage of the total sales price that Amazon charges for each sale. This varies by category but is often 15%.
- FBA Fulfillment Fee: The fee Amazon charges for picking, packing, shipping, and customer service for FBA orders. This fee is based on the product's size and weight.
- Monthly Storage Fee: Amazon charges a monthly fee for storing your inventory in their fulfillment centers. This is usually calculated per cubic foot and varies by size tier and time of year (e.g., holiday surcharges).
How the Calculator Works:
The calculator works backward from your desired profit. It first sums up all known costs:
Total Variable Costs = Product Cost + Shipping to Amazon + Amazon Referral Fee + FBA Fulfillment Fee
The Referral Fee is calculated based on the final selling price. The FBA Fulfillment Fee and Storage Fee are often dependent on product dimensions and weight.
The core of the calculation involves solving for the Selling Price (P) in the following equation:
P = Total Variable Costs + Storage Cost + Profit
Where:
Storage Cost = Monthly Storage Fee (per cubic foot) * Product Volume (cubic feet)Profit = Desired Profit Margin % * P
Rearranging the equation to solve for P:
P = (Product Cost + Shipping to Amazon + FBA Fulfillment Fee + Storage Cost) / (1 - Referral Fee % - Desired Profit Margin %)
This formula ensures that after all fees and costs are deducted, you are left with your desired profit margin as a percentage of the selling price.
Example Calculation:
Let's say you have a product with:
- Product Cost: $10.00
- Shipping to Amazon: $2.00
- Referral Fee: 15%
- FBA Fulfillment Fee: $5.00
- Monthly Storage Fee: $0.75 per cubic foot
- Product Volume: 0.8 cubic feet
- Desired Profit Margin: 25%
First, calculate the Storage Cost:
Storage Cost = $0.75/cu ft * 0.8 cu ft = $0.60
Now, plug these values into the formula:
Selling Price (P) = ($10.00 + $2.00 + $5.00 + $0.60) / (1 - 0.15 - 0.25)
P = $17.60 / (0.60)
P = $29.33
So, you would need to sell the product for approximately $29.33 to achieve a 25% profit margin after all costs and fees.
Tips for Optimal Pricing:
- Know Your Fees: Amazon's fee structure can change. Always refer to the latest FBA fee schedule.
- Accurate Measurements: Ensure your product dimensions and weight are correct for accurate fulfillment fee calculations.
- Competitor Analysis: Research competitor pricing, but don't solely rely on it. Your costs and profit goals are paramount.
- Factor in Returns: Consider potential return costs, especially for certain product categories.
- Test and Adjust: Monitor sales performance and profit margins. Be prepared to adjust your price based on market response and changing costs.