Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Amazon FBA products.
Understanding Amazon FBA Profitability
Launching a product on Amazon is exciting, but the difference between a successful business and a failing one often comes down to accurate math. An Amazon FBA Profit Calculator helps you see past the gross revenue to what actually lands in your bank account.
Key Components of FBA Costs
- COGS (Cost of Goods Sold): This is the manufacturing cost of your unit.
- Amazon Referral Fee: Typically 15% of the selling price, this is what Amazon charges you for access to their marketplace.
- FBA Fulfillment Fee: This covers picking, packing, and shipping the item to the customer. It depends on the size and weight of your product.
- Inbound Shipping: The cost to ship your inventory from your supplier or home to an Amazon fulfillment center.
- PPC and Marketing: Essential for visibility, these costs can significantly eat into margins if not managed correctly.
Real-World Example
Imagine you are selling a "Silicone Spatula Set" for $24.99. Your manufacturing cost is $5.00 per unit. Shipping it to Amazon costs $0.50 per unit. The FBA fulfillment fee is $5.40 and the referral fee (15%) is $3.75. You spend roughly $3.00 on PPC ads per unit sold.
- Total Costs: $5.00 + $0.50 + $5.40 + $3.75 + $3.00 = $17.65
- Net Profit: $24.99 – $17.65 = $7.34
- Profit Margin: 29.3%
- ROI: 146.8%
What is a Good Profit Margin?
While margins vary by category, most successful Amazon sellers aim for a net profit margin of 20% to 30%. This provides enough buffer for unexpected returns, storage fee increases, or aggressive price competition. If your margin falls below 15%, you may need to find a cheaper supplier or increase your retail price.