Amazon FBA Profit Calculator
Calculate your net margins and ROI for Fulfillment by Amazon
Understanding Your Amazon FBA Profitability
Success on Amazon depends on more than just high sales volume; it requires a deep understanding of your net margins after all platform fees are deducted. This Amazon FBA Profit Calculator helps you visualize the true profitability of your products before you source them.
Key Components of FBA Fees
- Referral Fee: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
- FBA Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item. This varies based on the dimensions and weight of your product.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase the product from your supplier.
- PPC Spend: Your advertising cost per unit sold. To calculate this, divide your total monthly ad spend by the number of units sold.
FBA Profit Calculation Example
Imagine you are selling a yoga mat for $40.00. Your manufacturing cost is $10.00 and shipping to Amazon is $2.00. Amazon takes a 15% referral fee ($6.00) and charges an FBA fee of $7.50. If you spend $4.00 on advertising per unit, your total costs are $29.50. Your net profit would be $10.50 per unit, with a margin of 26.25%.
How to Improve Your FBA Margins
1. Optimize Packaging: Smaller dimensions can move your product into a lower FBA fee tier.
2. Bulk Shipping: Reduce per-unit shipping costs by sending larger quantities to Amazon warehouses.
3. Increase Prices: Even a $1 increase in price can significantly boost your ROI if your conversion rate remains stable.