Amazon FBA Profit Calculator
Accurately estimate your net profit, margins, and ROI for Amazon FBA products.
Results Breakdown
Total Fees & Costs:
Net Profit per Unit:
Net Margin:
Return on Investment (ROI):
Understanding Amazon FBA Profitability
Selling on Amazon FBA (Fulfillment by Amazon) is a powerful way to scale an e-commerce business, but the fee structure can be complex. To ensure your business is sustainable, you must look beyond the top-line revenue and calculate your net margins accurately.
Key Components of the FBA Calculation
- Cost of Goods Sold (COGS): This is what you pay your manufacturer per unit, including any packaging costs.
- Referral Fees: Amazon charges a percentage of the total sales price for every item sold. For most categories, this is 15%.
- Fulfillment Fees: This covers the picking, packing, and shipping of your orders. It varies based on the size and weight of your product.
- PPC and Marketing: Advertising costs often eat up a significant portion of profits. Tracking your "ACOS" (Advertising Cost of Sales) at a per-unit level is vital.
FBA Profit Example
If you sell a yoga mat for $40.00:
- COGS: $10.00
- Amazon Referral (15%): $6.00
- FBA Fee: $7.50
- Shipping to Warehouse: $1.50
- PPC Spend: $4.00
- Total Net Profit: $11.00
- Net Margin: 27.5%
- ROI: 110%
How to Improve Your Margins
If your ROI is below 50% or your margin is below 15%, your business may be at risk from price fluctuations or increased storage fees. Consider optimizing your packaging to reduce dimensions (lowering FBA fees) or negotiating better rates with your supplier to lower COGS.