Calculate your net profit, margins, and ROI for Amazon FBA products.
Total Amazon Fees:$0.00
Total Landed Cost:$0.00
Net Profit:$0.00
Profit Margin:0%
ROI (Return on Investment):0%
Understanding Amazon FBA Profitability
Selling on Amazon through the Fulfillment by Amazon (FBA) program is a powerful way to scale an e-commerce business, but understanding your bottom line is critical. Many sellers focus only on the Selling Price and the Product Cost, forgetting the various "invisible" fees that eat into margins.
Key Metrics Explained
Amazon Referral Fee: This is the commission Amazon takes for every item sold. For most categories, this is 15%, but it can range from 8% to 45% depending on the niche.
FBA Fulfillment Fee: This covers the cost of picking, packing, and shipping your product to the customer. It is determined by the weight and dimensions of your product.
Landed Cost: This is the total cost of getting your product from the manufacturer to the Amazon warehouse, including manufacturing and freight.
ROI (Return on Investment): This calculates how much money you make relative to what you spent. An ROI of 100% means you doubled your money.
Real-World Example Calculation
Let's say you are selling a yoga mat for $35.00.
Product Cost (COGS): $10.00
Shipping to Amazon: $2.00
Referral Fee (15% of $35): $5.25
FBA Fulfillment Fee: $7.50
Storage/Other: $0.25
In this scenario, your Total Expenses are $25.00. Your Net Profit is $10.00 per unit. This results in a 28.6% Profit Margin and a 83.3% ROI.
How to Improve Your FBA Margins
To increase your profit, consider optimizing your packaging to move into a smaller FBA size tier, which can significantly lower your fulfillment fees. Additionally, negotiating better rates with your suppliers or shipping in bulk via sea freight instead of air can lower your cost per unit.
function calculateFBAProfit() {
var sellingPrice = parseFloat(document.getElementById('fba_sellingPrice').value) || 0;
var productCost = parseFloat(document.getElementById('fba_productCost').value) || 0;
var shippingToAmazon = parseFloat(document.getElementById('fba_shippingToAmazon').value) || 0;
var referralFeePercent = parseFloat(document.getElementById('fba_referralFee').value) || 0;
var fulfillmentFee = parseFloat(document.getElementById('fba_fulfillmentFee').value) || 0;
var otherCosts = parseFloat(document.getElementById('fba_otherCosts').value) || 0;
if (sellingPrice = 0) {
profitEl.className = 'result-value profit-positive';
} else {
profitEl.className = 'result-value profit-negative';
}
document.getElementById('res_margin').innerText = margin.toFixed(2) + '%';
document.getElementById('res_roi').innerText = isFinite(roi) ? roi.toFixed(2) + '%' : '0%';
// Smooth scroll to results
document.getElementById('fba_results_area').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}