Amazon FBA Profit & Margin Calculator
Unit Breakdown
Revenue:
$0.00
Referral Fee:
$0.00
Total Fees:
$0.00
Total Costs (COGS + Ship):
$0.00
Net Profit:
$0.00
Profit Margin:
0.00%
ROI:
0.00%
Understanding Your Amazon FBA Profitability
Selling on Amazon through the Fulfillment by Amazon (FBA) program is a powerful way to scale an e-commerce business, but the fee structure can be complex. To maintain a healthy business, you must look beyond top-line revenue and focus on your Net Profit Margin and Return on Investment (ROI).
Key Components of the Calculation
- Sales Price: The final amount the customer pays for your product.
- COGS (Cost of Goods Sold): This is what you pay your manufacturer per unit.
- Referral Fee: Amazon's "commission" for selling on their platform, typically 15% for most categories.
- Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item. This depends heavily on weight and dimensions.
- PPC/Marketing: Your Pay-Per-Click advertising spend divided by the number of units sold. This is a critical variable often overlooked.
Example Scenario
Imagine you are selling a yoga mat for $29.99. Your manufacturing cost is $8.50 and shipping it to Amazon costs $0.75 per unit. Amazon takes a 15% referral fee ($4.50) and charges a $5.40 fulfillment fee. If you spend $3.00 on PPC for every unit sold, your total expenses are $22.15. This leaves you with a net profit of $7.84 per unit, a margin of 26.1%, and an ROI of 84.8%.
Why ROI Matters More Than Margin
While profit margin tells you how much of every dollar you keep, ROI tells you how hard your money is working for you. A 100% ROI means that for every $1 you spend on inventory and shipping, you get that $1 back plus another $1 in profit. High-growth sellers often prioritize ROI to ensure they can reinvest capital quickly into more inventory.