Amazon FBA Profit Calculator
Total Amazon Fees:
$0.00
Total Cost of Goods:
$0.00
Net Profit:
$0.00
Net Margin:
0%
ROI (Return on Investment):
0%
Understanding Amazon FBA Profitability
Selling on Amazon using 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 remains sustainable, you must calculate your "Net Profit" after all Amazon-related expenses.
Key Components of FBA Fees
When using this Amazon FBA calculator, it is essential to understand what each field represents:
- Referral Fee: This is Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total selling price.
- Fulfillment Fee: A per-unit fee that covers picking, packing, shipping, and customer service. This depends on the weight and dimensions of your product.
- Storage Fees: Monthly fees based on the volume (cubic feet) your inventory occupies in Amazon fulfillment centers. These fees increase during the Q4 holiday season.
- COGS (Cost of Goods Sold): The total amount you paid the manufacturer to produce one unit of the product.
Margin vs. ROI: What's the Difference?
Many new sellers confuse Net Margin and ROI. Net Margin tells you how much of every dollar in revenue you keep as profit. A 20% margin means you keep $0.20 for every $1.00 in sales. ROI (Return on Investment) tells you how efficiently your capital is working. If you spend $10 to make $5 in profit, your ROI is 50%.
Example Calculation
Suppose you sell a yoga mat for $40.00. Your manufacturing cost is $10.00, and shipping to Amazon is $2.00. Amazon takes a 15% referral fee ($6.00) and charges an FBA fulfillment fee of $7.00. If storage and PPC ads cost $3.00 per unit, your total expenses are $28.00. Your net profit would be $12.00, resulting in a 30% margin and a 100% ROI on your manufacturing/shipping costs.