Amazon FBA Profit & Margin Calculator
Profit Breakdown
Gross Revenue:
$0.00
Referral Fee:
$0.00
Total Expenses:
$0.00
Net Profit:
$0.00
Profit Margin:
0.00%
Return on Investment (ROI):
0.00%
Understanding Amazon FBA Profitability
Selling on Amazon through the Fulfillment by Amazon (FBA) program offers incredible scale, but the fee structure can be complex. To run a sustainable e-commerce business, you must calculate your margins accurately before sourcing any product.
Key Components of the FBA Calculation
- Product Sale Price: The final amount the customer pays for your item on Amazon.
- COGS (Cost of Goods Sold): The price you pay the manufacturer for the product, including any sourcing fees.
- Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15%.
- Fulfillment Fee: A flat fee covering picking, packing, and shipping the product to the customer. This depends on the size and weight of the item.
- Storage Fees: Monthly costs for holding your inventory in Amazon's fulfillment centers.
Example Calculation
If you sell a yoga mat for $40.00:
- Product Cost: $10.00
- Inbound Shipping: $1.00
- Referral Fee (15%): $6.00
- Fulfillment Fee: $7.50
- Storage Fee: $0.20
Your Total Expenses would be $24.70. Your Net Profit would be $15.30 per unit, representing a 38.25% Profit Margin and a 153% ROI.
How to Improve Your FBA Margins
To increase your profitability, consider these three strategies:
- Optimize Packaging: FBA fees are heavily influenced by dimensions. Reducing packaging size by even half an inch can move your product into a lower fee tier.
- Negotiate COGS: As your volume increases, renegotiate with your manufacturer to lower the unit cost.
- Inventory Turnover: Avoid long-term storage fees by maintaining a healthy inventory turnover rate. High-storage fees can quickly evaporate your monthly profit.
Frequently Asked Questions
What is a good profit margin for FBA? Most successful sellers aim for a net margin of at least 20% to 30% to account for PPC (advertising) costs and unexpected returns.
Do these fees include PPC? No, this calculator focuses on organic margins. You should subtract your Average Cost of Sale (ACoS) from the net profit to see your final "bottom line" after advertising.