Compound Loan Calculator

by

Amazon FBA Profit Calculator

Results Summary

Total Amazon Fees: $0.00

Total Expenses: $0.00

Net Profit: $0.00

Profit Margin: 0.00%

ROI: 0.00%

function calculateFBAProfit() { var price = parseFloat(document.getElementById('sellingPrice').value) || 0; var cost = parseFloat(document.getElementById('productCost').value) || 0; var shipping = parseFloat(document.getElementById('shippingToAmazon').value) || 0; var refRate = parseFloat(document.getElementById('referralFee').value) || 0; var fulfill = parseFloat(document.getElementById('fbaFee').value) || 0; var storage = parseFloat(document.getElementById('storageFee').value) || 0; var other = parseFloat(document.getElementById('otherCosts').value) || 0; if (price 0 ? (netProfit / cost) * 100 : 0; document.getElementById('resTotalFees').innerText = '$' + totalAmazonFees.toFixed(2); document.getElementById('resTotalExpenses').innerText = '$' + totalExpenses.toFixed(2); document.getElementById('resNetProfit').innerText = '$' + netProfit.toFixed(2); document.getElementById('resMargin').innerText = margin.toFixed(2) + '%'; document.getElementById('resROI').innerText = roi.toFixed(2) + '%'; document.getElementById('resNetProfit').style.color = netProfit >= 0 ? '#2e7d32' : '#d32f2f'; document.getElementById('results-area').style.display = 'block'; }

Understanding Your Amazon FBA Profitability

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 the "Top Line" revenue and understand your true net profit. This Amazon FBA Profit Calculator helps you peel back the layers of fees and hidden costs.

Key Components of the Calculation

  • Referral Fees: This is essentially Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
  • Fulfillment Fees (Pick & Pack): This covers the cost of Amazon's employees picking your product from a shelf, packing it, and shipping it to the customer. This fee varies based on the weight and dimensions of your product.
  • Storage Fees: Amazon charges you for every cubic foot of space your inventory occupies in their warehouse. These fees usually increase during the Q4 holiday season (October–December).
  • Cost of Goods Sold (COGS): This is your manufacturing or wholesale cost per unit. It is the foundation of your Return on Investment (ROI) calculation.

FBA Profit Calculation Example

Imagine you are selling a yoga mat for $35.00. Here is how the math might look:

Product Cost: $10.00

Shipping to Warehouse: $1.00

Amazon Referral Fee (15%): $5.25

FBA Fulfillment Fee: $6.50

Monthly Storage: $0.25

Net Profit: $12.00

Profit Margin: 34.2%

How to Improve Your FBA Margins

If your calculator results show a thin margin (below 15%), consider these strategies:

  1. Optimize Packaging: Dropping just a few ounces or an inch in dimensions can move your product into a lower FBA fee tier, saving you dollars per unit.
  2. Negotiate with Suppliers: As your volume increases, request better per-unit pricing to lower your COGS.
  3. Bundle Products: Selling a 2-pack or 3-pack often results in a higher selling price while the FBA fulfillment fee remains relatively stable, boosting your overall margin.
  4. Manage PPC Spend: High advertising costs (ACOS) can quickly eat up all your organic profits. Monitor your "Other Costs" closely.

Leave a Comment