Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI per unit.
Total Amazon Fees:
$0.00
Total Cost Per Unit:
$0.00
Net Profit Per Unit:
$0.00
Profit Margin:
0%
ROI (Return on Investment):
0%
Understanding Your Amazon FBA Profit Margins
Selling on Amazon through the Fulfillment by Amazon (FBA) program offers incredible scale, but it comes with a complex fee structure. To run a sustainable business, you must look beyond your sales numbers and focus on your Net Profit.
Key Components of FBA Profitability
Using our Amazon FBA Profit Calculator requires understanding several moving parts:
- Product Cost (COGS): This is what you pay the manufacturer for the item. It is the foundation of your investment.
- Referral Fees: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total sales price.
- Fulfillment Fees: These fees cover picking, packing, and shipping your product to the customer. They are determined by the weight and dimensions of your product.
- Storage Fees: Amazon charges monthly fees based on the volume (cubic feet) your inventory occupies in their warehouses. Note that these fees increase significantly during Q4 (October–December).
- PPC (Pay-Per-Click): In today's competitive landscape, most sellers spend money on Amazon Advertising. This cost must be calculated on a "per unit" basis to see your true margin.
FBA Profit Calculation Example
Let's look at a realistic scenario for a private label seller:
Sale Price: $25.00
COGS: $6.00
Referral Fee (15%): $3.75
Fulfillment Fee: $5.20
Shipping to Amazon: $0.50
PPC Spend per unit: $2.00
Total Expenses: $17.45
Net Profit: $7.55
Profit Margin: 30.2%
ROI: 88.8%
COGS: $6.00
Referral Fee (15%): $3.75
Fulfillment Fee: $5.20
Shipping to Amazon: $0.50
PPC Spend per unit: $2.00
Total Expenses: $17.45
Net Profit: $7.55
Profit Margin: 30.2%
ROI: 88.8%
Strategies to Increase Your FBA Margins
If your results show low margins (below 15-20%), consider these adjustments:
- Optimize Packaging: Dropping just a few ounces or an inch in dimensions can move your product into a lower FBA tier, saving dollars on every sale.
- Increase Sale Price: Test incremental price increases ($0.50 or $1.00) to see if conversion rates hold. Small price increases often drop directly to the bottom line.
- Negotiate with Suppliers: As your volume increases, request better pricing or ask your manufacturer to include packaging costs in the unit price.
- Improve PPC Efficiency: Monitor your ACOS (Advertising Cost of Sales). High ad spend on low-converting keywords is a primary "profit killer" for FBA sellers.
Margin vs. ROI: What Matters More?
While Profit Margin tells you how much of every dollar you keep, ROI (Return on Investment) tells you how hard your money is working for you. A product with a 20% margin but a 150% ROI might be better than a product with a 40% margin and only a 50% ROI, because you can reinvest your capital faster with the former.