Amazon FBA Profit Calculator
Calculate your net margins, ROI, and total Amazon fees accurately.
Total Fees
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Net Profit
$0.00
Profit Margin
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ROI
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Understanding Amazon FBA Profit Margins
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but understanding the underlying costs is critical to your success. Many new sellers focus solely on the selling price and product cost, forgetting the complex web of Amazon-specific fees.
How This FBA Calculator Works
To calculate your true profit, we break down the transaction into four main pillars:
- Cost of Goods Sold (COGS): This is what you pay the manufacturer per unit.
- Amazon Referral Fees: Typically 15% for most categories, this is Amazon's commission for letting you sell on their marketplace.
- Fulfillment Fees: This covers picking, packing, and shipping the item to the customer. It depends on the size and weight of your product.
- Overhead & Marketing: Shipping your inventory to Amazon's warehouse and your PPC (Pay-Per-Click) advertising spend.
Example Profit Calculation
Imagine you are selling a Silicone Spatula Set:
Selling Price: $25.00
Product Cost: $5.00
Shipping to Amazon: $1.00
Referral Fee (15%): $3.75
Fulfillment Fee: $5.40
Marketing (PPC): $2.00
Total Cost: $17.15
Net Profit: $7.85
Margin: 31.4%
Product Cost: $5.00
Shipping to Amazon: $1.00
Referral Fee (15%): $3.75
Fulfillment Fee: $5.40
Marketing (PPC): $2.00
Total Cost: $17.15
Net Profit: $7.85
Margin: 31.4%
Tips for Improving Your FBA ROI
If your margins are slim (below 20%), consider these strategies:
- Optimize Packaging: Dropping just an inch in packaging size can shift your product into a lower FBA fee tier, saving you dollars per unit.
- Bulk Shipping: Use sea freight instead of air freight to lower your "Shipping to Warehouse" costs.
- Improve PPC Efficiency: Focus on high-converting keywords to lower your marketing cost per unit.
- Bundling: Sell 2-packs or 3-packs to increase the average order value while only paying the fulfillment fee once.