Fulfillment by Amazon Revenue Calculator
Estimate your FBA profit by inputting product details and Amazon fees.
Calculate Your FBA Revenue
The price a customer pays for your product.
Your direct cost to acquire or manufacture one unit.
Cost to ship one unit from your supplier to an Amazon fulfillment center.
Amazon's fee for picking, packing, shipping, and customer service. Varies by size/weight.
Amazon's monthly fee for storing your product in their warehouse. Varies by size/month.
15%
12%
8%
6%
Other/Exempt (e.g., digital goods)
Percentage Amazon takes from the selling price for each sale (category dependent).
Estimated number of units you expect to sell monthly.
Your Estimated FBA Performance
$0.00
Gross Profit Per Unit
Total Fees Per Unit
Net Profit Per Unit
Estimated Monthly Net Profit
Formula Used:
Net Profit Per Unit = Selling Price – COGS – Shipping to Amazon – FBA Fulfillment Fee – Monthly Storage Fee – Referral Fee
Total Fees Per Unit = Shipping to Amazon + FBA Fulfillment Fee + Monthly Storage Fee + Referral Fee
Gross Profit Per Unit = Selling Price – COGS
Estimated Monthly Net Profit = Net Profit Per Unit * Units Sold Per Month
Revenue & Costs Breakdown Per Unit
Visualizing the distribution of your selling price.
Cost & Fee Breakdown Per Unit
| Item | Cost Per Unit |
|---|---|
| Selling Price | |
| Cost of Goods Sold (COGS) | |
| Shipping to Amazon | |
| FBA Fulfillment Fee | |
| Estimated Monthly Storage Fee | |
| Amazon Referral Fee | |
| Total Fees | |
| Gross Profit | |
| Net Profit Per Unit |
Detailed breakdown of all costs and profits associated with selling one unit via FBA.
What is a Fulfillment by Amazon Revenue Calculator?
A Fulfillment by Amazon (FBA) revenue calculator is a specialized financial tool designed to help Amazon sellers estimate their potential profitability when using Amazon's FBA program. Instead of managing inventory and shipping yourself, FBA allows sellers to send their products in bulk to Amazon's fulfillment centers. Amazon then handles storage, picking, packing, shipping, customer service, and returns for those products. This calculator helps you forecast how much money you can actually make after accounting for all associated costs and fees imposed by Amazon and your own product expenses.
Who Should Use an FBA Revenue Calculator?
This tool is indispensable for several groups:
- Aspiring Amazon Sellers: Before launching a product, use the calculator to determine if a potential item is profitable enough to justify the investment and effort.
- Existing FBA Sellers: Regularly use the calculator to analyze the profitability of current products, identify areas for cost reduction, and optimize pricing strategies.
- Product Researchers: When evaluating new product ideas, the calculator is crucial for validating market viability and profit potential.
- Finance and Operations Managers: For businesses heavily reliant on Amazon FBA, this tool aids in financial planning, budget allocation, and performance tracking.
Common Misconceptions about FBA Profitability
Several myths can lead to underestimating or overestimating FBA profits:
- "FBA is too expensive." While FBA has fees, it often streamlines operations, reduces shipping times for customers, and can increase sales volume, potentially leading to higher overall profits than FBM (Fulfilled by Merchant). The calculator helps quantify these costs.
- "My profit is just Selling Price – Product Cost." This is the most significant misconception. It ignores the numerous Amazon fees (fulfillment, storage, referral) and your own inbound shipping costs.
- "Storage fees are negligible." Monthly storage fees, especially for oversized or slow-moving items, can add up significantly over time and eat into profits.
- "Referral fees are always 15%." While 15% is common, rates vary widely by product category, and some have lower rates. Accurate calculation requires knowing the specific referral fee for your product's category.
Understanding these nuances is key, and our fulfillment by amazon revenue calculator provides the clarity needed.
Fulfillment by Amazon Revenue Calculator Formula and Mathematical Explanation
The core purpose of an FBA revenue calculator is to determine the net profit derived from selling a product using Amazon's Fulfillment by Amazon service. This involves subtracting all direct costs and Amazon-related fees from the selling price.
Step-by-Step Derivation
- Calculate Gross Profit Per Unit: This is the revenue generated from a single unit sale before any expenses related to selling or fulfillment are considered.
Gross Profit Per Unit = Selling Price – Cost of Goods Sold (COGS) - Calculate Total Variable Costs Per Unit: These are costs directly tied to selling and fulfilling one unit through FBA.
Total Variable Costs Per Unit = Shipping Cost to Amazon + FBA Fulfillment Fee + Amazon Referral Fee - Calculate Total Costs Per Unit: This includes variable costs and the product's cost.
Total Costs Per Unit = COGS + Total Variable Costs Per Unit - Calculate Net Profit Per Unit: This is the final profit margin on each unit sold after all direct costs and Amazon fees are accounted for.
Net Profit Per Unit = Selling Price – Total Costs Per Unit
Alternatively: Net Profit Per Unit = Gross Profit Per Unit – Total Variable Costs Per Unit – Monthly Storage Fee - Calculate Total Monthly Storage Fees: This is the cost of storing one unit for a month. Note that this is often averaged out monthly but can be a daily charge. For simplicity in this calculator, we use a monthly average.
Monthly Storage Fees = Monthly Storage Fee Per Unit - Calculate Estimated Monthly Net Profit: This projects the overall profit for a given period based on estimated sales volume.
Estimated Monthly Net Profit = (Net Profit Per Unit * Units Sold Per Month) – (Monthly Storage Fee Per Unit * Units Sold Per Month)
For simplification, the calculator directly calculates profit per unit and then multiplies by units sold, assuming storage fees are averaged into per-unit calculations for the month. A more precise calculation might separate storage fees based on average inventory levels. Our calculator simplifies this to:
Estimated Monthly Net Profit = (Net Profit Per Unit * Units Sold Per Month) (where Net Profit Per Unit already factors in the averaged storage fee).
Variable Explanations
Understanding the variables is crucial for accurate calculations:
- Selling Price: The final price a customer pays on Amazon.
- Cost of Goods Sold (COGS): The direct cost incurred to produce or purchase one unit of your product.
- Shipping Cost to Amazon: The cost to transport one unit from your supplier/manufacturer to an Amazon fulfillment center. This can vary based on supplier location, quantity, and shipping method.
- Amazon FBA Fulfillment Fee: Amazon's fee for their logistics services (picking, packing, shipping). It depends on product size, weight, and shipping speed.
- Monthly Storage Fee: Amazon's fee for storing your inventory in their fulfillment centers. It's typically charged monthly and depends on product size, weight, and time of year (peak season rates are higher).
- Amazon Referral Fee Rate: The percentage of the total sales price Amazon deducts for facilitating the sale (commission). This varies by product category.
- Units Sold Per Month: Your estimated or actual monthly sales volume for the product.
Variables Table
| Variable | Meaning | Unit | Typical Range |
|---|---|---|---|
| Selling Price | Customer's purchase price | USD | $5.00 – $500.00+ |
| COGS | Cost to acquire/make product | USD | $1.00 – $200.00+ |
| Shipping Cost to Amazon | Inbound logistics cost per unit | USD | $0.50 – $10.00+ |
| FBA Fulfillment Fee | Amazon's handling/shipping charge | USD | $2.50 – $15.00+ |
| Monthly Storage Fee | Warehouse storage cost per unit per month | USD | $0.10 – $5.00+ (highly variable) |
| Referral Fee Rate | Amazon's commission percentage | % | 6% – 40% (most commonly 8%-15%) |
| Units Sold Per Month | Estimated sales volume | Count | 1 – 10,000+ |
Key variables impacting your FBA profitability.
Practical Examples (Real-World Use Cases)
Example 1: Standard Size Product – "Smart Water Bottle"
Consider a seller offering a popular "Smart Water Bottle" via FBA.
- Selling Price: $35.00
- Cost of Goods Sold (COGS): $10.00
- Shipping Cost to Amazon: $2.00
- Amazon FBA Fulfillment Fee: $5.00 (standard size)
- Monthly Storage Fee: $0.40 (average per unit/month)
- Amazon Referral Fee Rate: 15% (standard for most categories)
- Units Sold Per Month: 150
Calculator Inputs:
Product Price: 35.00, COGS: 10.00, Shipping to Amazon: 2.00, FBA Fulfillment Fee: 5.00, Storage Fee: 0.40, Referral Fee Rate: 15%, Units Sold: 150
Calculated Results:
- Referral Fee Amount = $35.00 * 0.15 = $5.25
- Total Fees Per Unit = $2.00 + $5.00 + $5.25 + $0.40 = $12.65
- Gross Profit Per Unit = $35.00 – $10.00 = $25.00
- Net Profit Per Unit = $35.00 – $10.00 – $2.00 – $5.00 – $0.40 – $5.25 = $12.35
- Estimated Monthly Net Profit = $12.35 * 150 = $1,852.50
Interpretation: This product appears profitable, yielding over $12 in net profit per unit and a healthy monthly net profit. The seller can confidently continue or scale this product.
Example 2: Small & Light Product – "Phone Case"
A seller offers a basic "Phone Case" designed to be cost-effective.
- Selling Price: $15.00
- Cost of Goods Sold (COGS): $3.00
- Shipping Cost to Amazon: $0.75
- Amazon FBA Fulfillment Fee: $3.00 (small & light program)
- Monthly Storage Fee: $0.15 (average per unit/month)
- Amazon Referral Fee Rate: 15%
- Units Sold Per Month: 500
Calculator Inputs:
Product Price: 15.00, COGS: 3.00, Shipping to Amazon: 0.75, FBA Fulfillment Fee: 3.00, Storage Fee: 0.15, Referral Fee Rate: 15%, Units Sold: 500
Calculated Results:
- Referral Fee Amount = $15.00 * 0.15 = $2.25
- Total Fees Per Unit = $0.75 + $3.00 + $2.25 + $0.15 = $6.15
- Gross Profit Per Unit = $15.00 – $3.00 = $12.00
- Net Profit Per Unit = $15.00 – $3.00 – $0.75 – $3.00 – $0.15 – $2.25 = $5.85
- Estimated Monthly Net Profit = $5.85 * 500 = $2,925.00
Interpretation: Even with a lower price point, the high volume and lower per-unit fees for "Small & Light" items result in a substantial monthly profit. This highlights the importance of product selection and leveraging Amazon programs.
How to Use This Fulfillment by Amazon Revenue Calculator
Our FBA revenue calculator is designed for ease of use. Follow these simple steps to get accurate profitability estimates:
Step-by-Step Instructions
- Enter Product Price: Input the exact price at which you plan to sell your product on Amazon.
- Input Cost of Goods Sold (COGS): Enter your direct cost for one unit of the product. This includes manufacturing or wholesale purchase cost.
- Add Shipping Cost to Amazon: Specify the cost to ship one unit from your supplier to an Amazon fulfillment center.
- Specify FBA Fulfillment Fee: Input Amazon's standard fulfillment fee per unit. You can usually find this in Amazon Seller Central or use estimates based on product size and weight.
- Enter Monthly Storage Fee: Provide the estimated average monthly storage cost per unit. This varies by product size and seasonality.
- Select Referral Fee Rate: Choose the correct referral fee percentage from the dropdown menu based on your product category.
- Estimate Units Sold Per Month: Enter the number of units you anticipate selling each month. This is a projection; use market research or past data if available.
- Click 'Calculate Revenue': Once all fields are populated, press the button to see your estimated profits.
How to Read the Results
- Primary Result (Highlighted): This is your estimated Net Profit Per Unit, displayed prominently. It's the profit you make after all direct costs and Amazon fees are subtracted from the selling price for one unit.
- Intermediate Values: These provide a deeper understanding:
- Gross Profit Per Unit: Profit before all selling and fulfillment expenses.
- Total Fees Per Unit: Sum of all Amazon-related costs (fulfillment, storage, referral) and inbound shipping per unit.
- Net Profit Per Unit: The final profit margin for each item sold.
- Estimated Monthly Net Profit: A projection of your total profit for the month based on your input units sold.
- Breakdown Table & Chart: These offer a visual and detailed view of where your money is going, breaking down the selling price into its cost and profit components.
Decision-Making Guidance
Use the calculator results to make informed business decisions:
- Pricing Optimization: If the net profit is too low, consider increasing the selling price (if market allows) or finding ways to reduce COGS or shipping costs.
- Product Viability: If the calculator shows a loss or very minimal profit, the product might not be suitable for FBA or may require significant cost reductions.
- Sourcing Decisions: Compare different suppliers based on their COGS and how it impacts your overall profitability.
- Marketing Strategy: High volume, low-margin products might require aggressive marketing to achieve significant overall profit, while low volume, high-margin products might be more stable.
Key Factors That Affect Fulfillment by Amazon Revenue Results
Several elements significantly influence your FBA profitability. Understanding these is key to maximizing your returns:
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Product Selection & Category
The type of product you sell and its category on Amazon are paramount. High-demand, easily sourced products with good margins are ideal. Furthermore, different categories have vastly different Amazon referral fees, influencing your final profit.
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Product Size and Weight
Amazon categorizes products by size tiers (e.g., Standard-Size, Oversize) and weight. These directly impact the FBA fulfillment fees and monthly storage fees. Smaller, lighter items generally incur lower fees.
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Cost of Goods Sold (COGS) & Sourcing Efficiency
Your ability to source products at a low cost is fundamental. Negotiating better rates with suppliers, finding more efficient manufacturing processes, or optimizing your supply chain directly increases your gross and net profit margins.
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Selling Price & Market Positioning
Setting the right selling price is a delicate balance. Price too high, and sales volume may suffer; price too low, and profit margins shrink. Competitor pricing, perceived value, and target profit margins all play a role.
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Amazon Fee Structure Changes
Amazon frequently updates its fee structure for fulfillment, storage, and other services. Sellers must stay informed about these changes, as they can significantly impact profitability overnight. Regularly updating your calculator inputs is essential.
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Inventory Management & Storage Duration
The longer your inventory sits in an Amazon fulfillment center, the more you'll pay in monthly storage fees. Efficient inventory management, accurate demand forecasting, and strategies to avoid long-term storage fees (like removing or disposing of slow-moving stock) are crucial.
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Shipping Costs to Amazon
While often overlooked, the cost to get your products from your supplier to Amazon's warehouses can be substantial, especially for international sellers or bulky items. Consolidating shipments and choosing cost-effective logistics partners can improve margins.
Frequently Asked Questions (FAQ)
Q1: How accurate is this FBA revenue calculator?
A: The calculator provides a highly accurate estimate based on the inputs you provide. However, actual profitability can vary due to fluctuating Amazon fees, unexpected shipping costs, returns, and storage fee adjustments (e.g., seasonal rates). Always use current fee data from Seller Central for the most precise results.
Q2: What is the difference between FBA Fulfillment Fee and Referral Fee?
A: The FBA Fulfillment Fee covers Amazon's costs for picking, packing, and shipping the order to the customer. The Referral Fee is Amazon's commission for facilitating the sale itself, applied as a percentage of the selling price.
Q3: How do I find the correct Referral Fee Rate for my product?
A: You can find the specific referral fee rate for your product's category in Amazon Seller Central. Navigate to "Settings" > "Fulfillment by Amazon" > "FBA Fees" or refer to Amazon's official FBA reference guides.
Q4: Are there any hidden FBA fees not included here?
A: This calculator includes the most common fees. Potential additional fees include: Long-Term Storage Fees (for inventory stored over 6 months), Removal Order Fees (to have inventory sent back to you), Disposal Order Fees, and potential adjustment fees for improper packaging or labeling. It's crucial to consult Amazon's latest fee schedule.
Q5: What if my product has multiple sizes/weights that qualify for different FBA fees?
A: If your product can be sold in different versions (e.g., small vs. large) or if you ship in batches with varying weights, you may need to run the calculator multiple times or calculate an average fee based on your expected sales mix for each version.
Q6: How does the "Small & Light" program affect fees?
A: Amazon's "Small & Light" program offers significantly lower fulfillment fees for eligible small and light items. If your product qualifies and you enroll, you should input the lower, specific "Small & Light" fulfillment fees into the calculator instead of standard FBA fees.
Q7: Should I include advertising costs (e.g., Amazon PPC) in this calculation?
A: This calculator focuses on core FBA operational costs. Advertising expenses (like Pay-Per-Click campaigns) are separate marketing costs. For a full profit picture, you would deduct these advertising costs from the calculated net profit.
Q8: What's the best way to minimize FBA fees?
A: Focus on sourcing products with lower COGS, optimizing packaging to fit into smaller FBA size tiers, maintaining good inventory turnover to reduce storage fees, and ensuring your products meet Amazon's preparation requirements to avoid extra charges.