Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI after Amazon fees.
Maximize Your Amazon FBA Earnings
Success on Amazon hinges on understanding your numbers. Many sellers fail because they overlook the "hidden" costs of Fulfillment by Amazon (FBA). Our Amazon FBA Profit Calculator helps you visualize the true bottom line after every fee is accounted for.
Understanding FBA Fees
When selling on Amazon, your revenue isn't just price minus product cost. You must account for several specific line items:
- Referral Fees: Usually a percentage of the total sales price (standard is 15% for most categories).
- Fulfillment Fees: This covers the picking, packing, and shipping of your orders by Amazon staff. This depends on the size and weight of your item.
- Storage Fees: Monthly costs based on the volume (cubic feet) your inventory occupies in Amazon's warehouses.
- Inbound Shipping: The cost to send your inventory from your supplier or home to the Amazon Fulfillment Center.
Real-World Example Calculation
Imagine you are selling a yoga mat:
- Sale Price: $40.00
- Cost to Manufacture: $10.00
- Shipping to Amazon: $2.00
- Referral Fee (15%): $6.00
- FBA Fulfillment Fee: $7.50
- Storage Fee: $0.50
In this case, your total expenses are $26.00 ($10 + $2 + $6 + $7.50 + $0.50). Your Net Profit is $14.00 per unit, resulting in a 35% Profit Margin and a 116% ROI (since you invested $12 to make $14 profit).
How to Improve Your Profit Margins
To increase your profitability, consider optimizing your packaging to reduce the FBA Fulfillment Fee, which is heavily determined by dimensional weight. Additionally, focus on high-turnover inventory to minimize monthly storage costs, especially during the Q4 peak season when storage rates triple.