Calculate your net margins and ROI after all Amazon fees
Net Profit$0.00
Margin0%
ROI0%
Fee Breakdown:
Amazon Referral Fee:$0.00
FBA Fulfillment & Storage:$0.00
Total Fees & Costs:$0.00
Understanding Amazon FBA Profit Margins
Selling on Amazon through Fulfillment by Amazon (FBA) is a lucrative way to build an e-commerce business, but the fee structure can be complex. To ensure your business stays healthy, you must account for every cost before sourcing a product.
Key Components of the Calculation
Selling Price: The list price customers see on Amazon.
Referral Fee: Amazon's "commission" for selling on their platform. This is usually 15% for most categories.
Fulfillment Fee: A flat fee based on the weight and dimensions of your product that covers picking, packing, and shipping.
Landed Cost: This includes the manufacturing cost per unit plus the shipping cost to get the item into Amazon's warehouses.
Storage Fees: Monthly costs based on the volume (cubic feet) your inventory occupies in the fulfillment center.
FBA Profitability Example
Imagine you sell a Yoga Mat for $40.00. Your manufacturing cost is $10.00 and it costs $2.00 to ship to Amazon. If the referral fee is 15% ($6.00) and the FBA fulfillment fee is $7.00, your total costs (before PPC) would be $25.00. This leaves you with a $15.00 net profit, a 37.5% margin, and a 150% ROI on your initial product investment.
Expert Tip: Always factor in a "PPC Budget" (Pay-Per-Click advertising). Most successful Amazon sellers spend between 10% and 20% of their revenue on advertising to maintain visibility in search results.
function calculateFBAProfit() {
// Get Input Values
var price = parseFloat(document.getElementById("sellingPrice").value) || 0;
var cost = parseFloat(document.getElementById("productCost").value) || 0;
var shipping = parseFloat(document.getElementById("shippingToFBA").value) || 0;
var referralPct = parseFloat(document.getElementById("referralFeePercent").value) || 0;
var fulfill = parseFloat(document.getElementById("fulfillmentFee").value) || 0;
var storage = parseFloat(document.getElementById("storageFee").value) || 0;
var ppc = parseFloat(document.getElementById("ppcCost").value) || 0;
// Calculations
var referralAmount = price * (referralPct / 100);
var fbaTotalFees = fulfill + storage;
var totalExpenses = cost + shipping + referralAmount + fbaTotalFees + ppc;
var netProfit = price – totalExpenses;
var margin = 0;
if (price > 0) {
margin = (netProfit / price) * 100;
}
var roi = 0;
if (cost > 0) {
roi = (netProfit / (cost + shipping)) * 100;
}
// Display Results
document.getElementById("results-area").style.display = "block";
document.getElementById("resProfit").innerText = "$" + netProfit.toFixed(2);
document.getElementById("resMargin").innerText = margin.toFixed(2) + "%";
document.getElementById("resROI").innerText = roi.toFixed(2) + "%";
// Fee Breakdown
document.getElementById("breakReferral").innerText = "$" + referralAmount.toFixed(2);
document.getElementById("breakFulfillment").innerText = "$" + fbaTotalFees.toFixed(2);
document.getElementById("totalCosts").innerText = "$" + totalExpenses.toFixed(2);
// Color code profit
if (netProfit > 0) {
document.getElementById("resProfit").style.color = "#2e7d32";
} else {
document.getElementById("resProfit").style.color = "#d32f2f";
}
}