Amazon FBA Profit Calculator
How to Calculate Amazon FBA Profit
Success on Amazon Fulfillment by Amazon (FBA) requires a deep understanding of your numbers. Unlike traditional e-commerce, Amazon takes several slices of your revenue before you see a penny of profit. This calculator helps you determine your "take-home" pay per unit sold.
Key Metrics Explained
Referral Fee: This is Amazon's commission for selling on their platform. For most categories, this is 15%, though it can range from 8% to 45% depending on the niche.
FBA Fulfillment Fee: This covers picking, packing, and shipping your product to the customer. It is based on the weight and dimensions of your packaged product.
Landed Cost: This includes the manufacturing cost of your product (COGS) plus the cost of shipping that inventory from your supplier to Amazon's warehouse.
Example Profit Calculation
Imagine you sell a Yoga Mat for $40.00:
- Product Cost: $10.00
- Shipping to Warehouse: $2.00
- Referral Fee (15%): $6.00
- Fulfillment Fee: $7.50
- Marketing (PPC) per unit: $3.00
In this scenario, your total expenses are $28.50. Your Net Profit is $11.50 per unit, resulting in a 28.75% profit margin and a 115% ROI on your manufacturing cost.
What is a Good FBA Margin?
Most experienced Amazon sellers aim for the "Rule of Three": 1/3 for product costs, 1/3 for Amazon fees, and 1/3 for profit. Ideally, you should maintain a net margin of at least 20% to account for unexpected returns, storage price hikes, or PPC competition.