Amazon FBA Profit Calculator
How to Use the Amazon FBA Profit Calculator
Success on Amazon hinges on accurate math. Our Amazon FBA Profit Calculator helps Private Label and Wholesale sellers determine exactly how much money stays in their pocket after Amazon takes its cut. To get the most accurate results, ensure you have your manufacturing quotes and Amazon category fees ready.
Understanding the Key Inputs
- Sale Price: The final price the customer pays for your product on Amazon.com.
- Product Cost (COGS): The amount you pay your manufacturer per unit, including any packaging costs.
- Shipping to Amazon: Your inbound freight costs (sea or air) divided by the number of units in the shipment.
- Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15%.
- Fulfillment Fee: The flat fee Amazon charges to pick, pack, and ship your item. This depends on the size and weight of your product.
- Monthly Storage: The cost to keep one unit in an Amazon fulfillment center for one month. Note that this increases during Q4 (October-December).
What is a "Good" FBA Profit Margin?
In the world of Amazon FBA, a healthy profit margin typically falls between 20% and 30%. An ROI (Return on Investment) of 100% or higher is considered excellent, meaning you double your money on every unit sold. If your margin falls below 15%, you have very little room for error if Amazon increases fees or if PPC costs rise.
Example Calculation
Imagine you sell a Yoga Mat for $35.00. Your manufacturing cost is $10.00 and shipping is $2.00. Amazon takes a 15% referral fee ($5.25) and charges a $7.00 FBA fee. After accounting for $3.00 in PPC ads per unit, your total cost is $27.25, leaving you with a net profit of $7.75 per unit, a 22% margin.