Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA products.
Total Amazon Fees:
$0.00
Total Expenses:
$0.00
Net Profit:
$0.00
Profit Margin:
0%
Return on Investment (ROI):
0%
How to Use the Amazon FBA Profit Calculator
Calculating your potential earnings before sourcing a product is the most critical step in a successful Amazon FBA (Fulfillment by Amazon) business. Our calculator helps you navigate the complex fee structure to ensure your business remains sustainable.
Understanding FBA Fee Components
To get the most accurate results, you need to understand what each field in the calculator represents:
- Sale Price: The final price the customer pays for your product on Amazon.com.
- Cost of Goods (COGS): The total cost to manufacture or purchase one unit of your product.
- Shipping to Amazon: The cost per unit to ship your inventory from your supplier or warehouse to an Amazon Fulfillment Center.
- Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15%.
- Fulfillment Fee: A flat fee charged per unit to cover picking, packing, and shipping the product to the customer. This depends on the size and weight of the product.
- Storage Fee: The monthly cost to store one unit in Amazon's warehouse. This fluctuates based on the time of year (higher in Q4).
Example Calculation
Imagine you are selling a yoga mat for $35.00. Your manufacturing cost is $10.00, and it costs $1.50 to ship it to Amazon. If the FBA fulfillment fee is $7.00 and the referral fee is 15% ($5.25), your total expenses (excluding storage) would be $23.75. Your net profit would be $11.25 per unit, resulting in a 32% profit margin.
What is a Good Profit Margin for FBA?
Most experienced Amazon sellers aim for the "Rule of Three": 1/3 for COGS, 1/3 for Amazon fees, and 1/3 for profit. Generally, a net profit margin of 20% or higher is considered healthy, as it provides a buffer for PPC (Pay-Per-Click) advertising costs and unexpected returns.
Tips for Increasing Your FBA Profit
If your margins look thin, consider the following strategies:
- Optimize Packaging: Reducing the dimensions of your product box can drop you into a lower FBA fulfillment fee tier.
- Bulk Shipping: Ship larger quantities via Sea Freight (LCL or FCL) instead of Air Express to reduce your per-unit shipping cost.
- Negotiate with Suppliers: As your volume increases, request better pricing or tiered discounts.
- Monitor Inventory Age: Avoid "Long-Term Storage Fees" by keeping your inventory turnover high and using the calculator to find the sweet spot for pricing.