Amazon FBA Profit Calculator
Mastering Your Amazon FBA Margins
Success on Amazon isn't just about high sales volume; it's about understanding your true net profit. Many sellers fall into the trap of looking at their revenue while ignoring the hidden costs of the Fulfillment by Amazon (FBA) ecosystem. Our Amazon FBA Profit Calculator helps you peel back the layers of Amazon's fee structure to see exactly what you keep at the end of the day.
Key Metrics for FBA Success
Referral Fees: This is essentially Amazon's commission for selling on their platform. For most categories, this is 15%, but it can range from 8% to 45% depending on the niche.
Fulfillment Fees: This covers the picking, packing, and shipping of your orders. These are determined by the weight and dimensions of your product. Small, lightweight items are significantly more profitable due to lower fulfillment tiers.
Storage Fees: Amazon charges for the space your inventory occupies in their warehouses. Note that these fees increase significantly during "Peak Season" (October through December).
Real-World Example Calculation:
- Selling Price: $25.00
- COGS (Product Cost): $6.00
- Amazon Referral Fee (15%): $3.75
- FBA Fulfillment Fee: $4.50
- Inbound Shipping: $0.50
- PPC Spend per unit: $2.00
- Net Profit: $8.25
- Profit Margin: 33%
In this scenario, for every unit sold, you put $8.25 back in your pocket after all expenses are paid.
Tips to Improve Your FBA Profitability
1. Optimize Packaging: Shaving off just half an inch or a few ounces can move your product into a lower fulfillment fee tier, potentially saving you $1.00+ per unit.
2. Monitor Storage Age: Avoid "Long-Term Storage Fees" by managing your inventory levels carefully. Amazon penalizes inventory that sits for more than 180 or 365 days.
3. Manage PPC Efficiency: A high ACOS (Advertising Cost of Sales) can quickly evaporate your margins. Always calculate your "Break-even ACOS" which is equal to your profit margin before advertising.