Amazon Revenue Calculator

by

Amazon Revenue & Profit Calculator

Monthly Estimates

Gross Revenue: $0.00
Total Amazon Fees: $0.00
Cost of Goods (COGS): $0.00
Net Monthly Profit: $0.00
Net Profit Margin: 0.00%
function calculateAmazonRevenue() { var price = parseFloat(document.getElementById('sellingPrice').value); var cost = parseFloat(document.getElementById('unitCost').value); var refPercent = parseFloat(document.getElementById('referralFee').value); var shipping = parseFloat(document.getElementById('fbaFee').value); var qty = parseFloat(document.getElementById('unitsSold').value); if (isNaN(price) || isNaN(cost) || isNaN(refPercent) || isNaN(shipping) || isNaN(qty)) { alert("Please fill in all fields with valid numbers."); return; } var grossRevenue = price * qty; var referralFeeAmount = (refPercent / 100) * price * qty; var totalFbaFees = shipping * qty; var totalFees = referralFeeAmount + totalFbaFees; var totalCOGS = cost * qty; var netProfit = grossRevenue – totalFees – totalCOGS; var margin = (netProfit / grossRevenue) * 100; document.getElementById('resGrossRevenue').innerText = "$" + grossRevenue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalFees').innerText = "-$" + totalFees.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalCOGS').innerText = "-$" + totalCOGS.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resNetProfit').innerText = "$" + netProfit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resMargin').innerText = margin.toFixed(2) + "%"; document.getElementById('results-area').style.display = 'block'; }

Understanding Your Amazon Profitability

Calculating your Amazon revenue is the first step toward building a sustainable e-commerce business. Many new sellers focus solely on the "Gross Revenue" figure shown in Seller Central, but the real health of your business is determined by your net profit margin after all Amazon-specific fees are deducted.

Key Components of the Amazon Revenue Calculator

  • Selling Price: This is the final price the customer pays for your product on the Amazon marketplace.
  • Referral Fee: Amazon charges a percentage of the total sales price for "referring" the customer to you. For most categories, this is 15%, but it can range from 8% to 45% depending on the niche.
  • FBA Fee: If you use Fulfillment by Amazon, this fee covers picking, packing, and shipping your product. It is determined by the size and weight of your item.
  • COGS (Cost of Goods Sold): This includes the manufacturing cost, shipping from the factory to the Amazon warehouse, and any labeling or inspection fees.

Example Calculation

Imagine you are selling a kitchen gadget with the following metrics:

  • Selling Price: $25.00
  • Referral Fee (15%): $3.75
  • FBA Fee: $5.50
  • Unit Cost: $6.00
  • Net Profit per Unit: $9.75
  • Net Profit Margin: 39%

If you sell 500 units per month, your Gross Revenue is $12,500, but your Net Monthly Profit is $4,875. Monitoring these numbers helps you decide when to scale advertising or when you need to negotiate better prices with your suppliers.

How to Improve Your Amazon Margins

To increase your profitability, you have three main levers: increase your price (if the market allows), reduce your manufacturing costs through bulk orders, or optimize your packaging to fit into a smaller FBA size tier. Even a $0.50 reduction in FBA fees can result in thousands of dollars in extra profit per year for high-volume sellers.

Leave a Comment