Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for your FBA products.
How to Use the Amazon FBA Profit Calculator
Success on Amazon Fulfillment by Amazon (FBA) starts with knowing your numbers. This calculator helps you break down the complex fee structure of the Amazon marketplace to determine if a product is worth sourcing. By calculating your "Land Cost" against your "Net Realized Profit," you can avoid common pitfalls that trap new sellers.
Key Metrics Explained
- Selling Price: The final price the customer pays on the Amazon listing.
- Product Cost (COGS): The amount you pay your manufacturer for a single unit.
- Shipping to Amazon: The freight cost (ocean or air) divided by the number of units in your shipment.
- Referral Fee: Usually 15% for most categories, this is Amazon's commission for the sale.
- FBA Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item to the customer. This depends on dimensions and weight.
- Marketing/PPC: Your total monthly ad spend divided by the total number of units sold. This is vital for calculating true net profit.
FBA Profit Example:
Imagine selling a Kitchen Gadget for $25.00.
- Product Cost: $6.00
- Shipping: $1.00
- Referral Fee (15%): $3.75
- FBA Fee: $5.00
- PPC Spend: $2.00
Total Costs: $17.75 | Net Profit: $7.25 | Net Margin: 29%
Why Net Margin Matters More Than Sales
Many sellers focus on "Gross Revenue," but revenue doesn't pay the bills—profit does. A healthy FBA business typically aims for a net margin of 20% to 30%. If your margin is below 15%, you may not have enough buffer to handle returns, storage fees, or sudden price wars from competitors.
Strategies to Improve Your FBA Profit
If your results show a low margin, consider the following: 1. Optimize Packaging: Reducing package size by even half an inch can drop your FBA tier and save dollars per unit. 2. Negotiate with Suppliers: As your volume increases, request lower per-unit costs. 3. Manage PPC: Focus your ad spend on high-converting keywords to lower your "per unit" marketing cost.