Amazon FBA Profit Calculator
Profit Breakdown
Net Profit:
$0.00
Profit Margin:
0%
ROI:
0%
Total Amazon Fees:
$0.00
How to Use the Amazon FBA Profit Calculator
Selling on Amazon FBA (Fulfillment by Amazon) is a lucrative opportunity, but understanding your real margins is the difference between a thriving brand and a failing business. Our Amazon FBA Profit Calculator helps you visualize the impact of Amazon's complex fee structure on your bottom line.
Understanding the Key Metrics
- Referral Fee: This is essentially Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
- Fulfillment Fee: This covers the cost of picking, packing, and shipping your product to the customer. It depends on the size and weight of your item.
- COGS (Cost of Goods Sold): The raw manufacturing cost of your product.
- ROI (Return on Investment): This shows how much profit you make relative to what you paid for the product. An ROI of 100% means you doubled your money.
Example Calculation for a Private Label Product
Imagine you are selling a yoga mat for $35.00. Your costs are as follows:
| Expense Item | Amount |
|---|---|
| Product Manufacturing | $8.00 |
| Shipping to FBA Warehouse | $2.00 |
| Amazon Referral Fee (15%) | $5.25 |
| FBA Picking & Packing | $6.50 |
In this scenario, after subtracting the $21.75 in total expenses, your Net Profit would be $13.25 per unit, representing a 37.8% profit margin and a 165% ROI.
3 Tips to Increase Your FBA Profit Margins
- Optimize Packaging: Amazon fees are heavily based on dimensions. Reducing your box size by even half an inch can often move your product into a lower size tier, saving you dollars per unit.
- Negotiate COGS: As your volume increases, revisit your supplier. A $0.50 reduction in manufacturing cost goes straight to your net profit.
- Monitor Storage Fees: Amazon charges significantly more for storage during Q4 (October – December). Keep your inventory lean to avoid "aged inventory surcharges."