Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA listings.
Understanding Amazon FBA Profitability
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but the fee structure can be complex. To ensure your business is sustainable, you must look beyond the top-line revenue and focus on your net profit margins.
Key FBA Fee Components
1. Referral Fees: This is essentially Amazon's commission for bringing you a customer. For most categories, this is 15% of the total selling price.
2. Fulfillment Fees: These cover the cost of picking, packing, and shipping your orders. These are based on the weight and dimensions of your product. Using a smaller, lighter package is a common strategy to increase margins.
3. COGS (Cost of Goods Sold): This includes the manufacturing cost per unit. It is the foundation of your ROI calculation.
4. Shipping to Amazon: Don't forget the "first mile" shipping. This is the cost to get your products from your supplier or warehouse into Amazon's fulfillment centers.
Example Calculation
Imagine you sell a yoga mat for $40.00. Your manufacturing cost is $10.00, and shipping to Amazon costs $2.00. If the referral fee is 15% ($6.00) and the FBA fulfillment fee is $7.00, your total costs before advertising are $25.00. This leaves you with a $15.00 profit, a 37.5% margin, and a 150% ROI on your inventory spend.
How to Improve Your Margins
- Optimize Packaging: Reducing package size by even half an inch can sometimes drop you into a lower FBA fee tier.
- Bulk Shipping: Lower your per-unit shipping cost by sending larger shipments to Amazon's warehouses.
- Monitor Storage Fees: Amazon charges monthly storage fees. Avoid "dead stock" to prevent long-term storage fees from eating your profits.