Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA sales.
Gross Revenue:
Total Amazon Fees:
Total Landed Costs:
Net Profit:
Profit Margin:
Return on Investment (ROI):
How to Use the Amazon FBA Profit Calculator
To accurately determine your potential earnings on Amazon, you need to account for every fee involved in the "Fulfillment by Amazon" ecosystem. This calculator helps you break down your costs from the factory to the customer's doorstep.
Understanding Key FBA Metrics
- Landed Cost: This includes the price you paid the manufacturer plus the shipping cost to get the item into Amazon's fulfillment centers.
- Referral Fee: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total sales price.
- Fulfillment Fee: This is the flat fee Amazon charges to pick, pack, and ship your product. It is based on the weight and dimensions of the item.
- Monthly Storage: Amazon charges for the space your inventory occupies in their warehouse. This fluctuates depending on the season (higher in Q4).
Example Calculation
Imagine you sell 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 a $7.00 FBA fulfillment fee. If you spend $3.00 on PPC advertising per unit, your total expenses are $28.00. Your net profit would be $12.00 per unit, resulting in a 30% profit margin and a 100% ROI on your landed costs ($12 profit / $12 landed cost).
Strategies to Improve Your FBA Margins
If your margins are slim, consider optimizing your packaging to reduce the FBA fulfillment tier (moving from Large Standard to Small Standard can save dollars per unit). Additionally, focus on improving your "ACOS" (Advertising Cost of Sales) to lower your per-unit marketing spend.