Cost Calculator

by

Amazon FBA Profit Calculator

Estimate your net profit, ROI, and margins for Fulfillment by Amazon products.

Profit Breakdown

Total Amazon Fees: $0.00
Total Landed Cost: $0.00
Net Profit Per Unit
$0.00
Net Margin
0.00%
ROI
0.00%

Understanding Amazon FBA Profit Calculation

To run a successful Amazon business, you must look beyond the "Total Sales" figure in Seller Central. High revenue can often mask a business that is losing money once all fees and costs are accounted for. Our Amazon FBA Profit Calculator helps you visualize the true profitability of your products after every deduction.

Key Components of FBA Profitability

  • Cost of Goods Sold (COGS): This is the manufacturing or purchase price of your item. Always include the cost of packaging and inserts in this figure.
  • Amazon Referral Fee: Amazon charges a percentage of the total sales price as a commission. For most categories, this is 15%, but it can range from 8% to 45% depending on the niche.
  • FBA Fulfillment Fees: This covers the cost of Amazon picking, packing, and shipping your product to the customer. This fee is determined by the weight and dimensional size of your product.
  • Shipping to Amazon: This is often overlooked. It is the cost of freight, customs, and domestic transport to get your inventory into an Amazon fulfillment center.
  • PPC and Marketing: Unless you have high organic rankings, you will likely spend money on Amazon Advertising. Calculating your "ACOS per unit" is vital for accurate margins.

Example Profit Scenario

Imagine you are selling a yoga mat for $35.00. Your manufacturing cost is $10.00 and it costs $2.00 per unit to ship the inventory to Amazon's warehouse. Amazon takes a 15% referral fee ($5.25) and the FBA fulfillment fee is $7.50. If you spend $3.00 per sale on PPC ads, your total expenses are $27.75.

In this scenario, your Net Profit is $7.25 per unit. Your Profit Margin is 20.7% and your ROI is 58% (calculated as profit divided by cost of goods and shipping).

How to Improve Your Margins

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

  1. Negotiate with Suppliers: Bulk orders or switching manufacturers can lower your COGS.
  2. Optimize Packaging: Reducing the size and weight of your product packaging can drop you into a lower FBA fee tier.
  3. Increase Sales Price: Even a $1 or $2 increase can significantly boost your net profit if the market supports it.
  4. Lower Ad Spend: Focus on optimizing your PPC campaigns to lower your ACOS (Average Cost of Sale).
function calculateFBAProfit() { // Get Input Values var salesPrice = parseFloat(document.getElementById('fba_sales_price').value) || 0; var productCost = parseFloat(document.getElementById('fba_product_cost').value) || 0; var shippingIn = parseFloat(document.getElementById('fba_shipping_in').value) || 0; var fbaFee = parseFloat(document.getElementById('fba_fulfillment_fee').value) || 0; var referralPercent = parseFloat(document.getElementById('fba_referral_percent').value) || 0; var ppcCost = parseFloat(document.getElementById('fba_ppc_cost').value) || 0; // Logic: Referral Fee is calculated as a percentage of Sales Price var referralFee = (referralPercent / 100) * salesPrice; // Logic: Total Amazon Fees var totalAmazonFees = fbaFee + referralFee; // Logic: Total Landed Cost (What you actually paid to get it there and sell it) var totalExpenses = productCost + shippingIn + totalAmazonFees + ppcCost; // Logic: Net Profit var netProfit = salesPrice – totalExpenses; // Logic: Margin (Profit / Revenue) var margin = 0; if (salesPrice > 0) { margin = (netProfit / salesPrice) * 100; } // Logic: ROI (Profit / Investment Cost) // Investment cost is typically COGS + Shipping to Amazon var investmentCost = productCost + shippingIn; var roi = 0; if (investmentCost > 0) { roi = (netProfit / investmentCost) * 100; } // Update Results Display document.getElementById('res_total_fees').innerHTML = '$' + totalAmazonFees.toFixed(2); document.getElementById('res_total_landed').innerHTML = '$' + totalExpenses.toFixed(2); document.getElementById('res_net_profit').innerHTML = '$' + netProfit.toFixed(2); document.getElementById('res_margin').innerHTML = margin.toFixed(2) + '%'; document.getElementById('res_roi').innerHTML = roi.toFixed(2) + '%'; // Color coordination for profit/loss var profitDisplay = document.getElementById('res_net_profit'); if (netProfit > 0) { profitDisplay.style.color = '#2e7d32'; } else if (netProfit < 0) { profitDisplay.style.color = '#d32f2f'; } else { profitDisplay.style.color = '#333'; } } // Initial calculation on load window.onload = function() { calculateFBAProfit(); };

Leave a Comment