Amazon FBA Profit Calculator
Calculate your net margins, ROI, and total Amazon fees instantly.
Total Amazon Fees:
$0.00
Total Expenses:
$0.00
Net Profit:
$0.00
Profit Margin:
0%
Return on Investment (ROI):
0%
Understanding Amazon FBA Fees and Profitability
Selling on Amazon FBA (Fulfillment by Amazon) is a powerful way to scale an e-commerce business, but the fee structure can be complex. To maintain a healthy business, you must look beyond the "Selling Price" and account for every hidden cost.
Key Metrics Explained
- Referral Fee: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
- Fulfillment Fee: A per-unit fee based on the weight and dimensions of your product. This covers picking, packing, and shipping to the customer.
- COGS (Cost of Goods Sold): This is what you pay your manufacturer for the product itself.
- ROI (Return on Investment): Calculated as (Net Profit / Initial Investment). This tells you how hard your money is working for you.
Example Calculation
Imagine you are selling a yoga mat for $40.00:
- Product Cost: $10.00
- Shipping to Amazon: $2.00
- Referral Fee (15%): $6.00
- FBA Fee: $7.50
- PPC Advertising: $4.50
In this scenario, your total expenses are $30.00. Your Net Profit is $10.00, resulting in a 25% Profit Margin and an 83.3% ROI on your inventory and shipping spend.
How to Improve Your Margins
Successful Amazon sellers focus on three levers: reducing manufacturing costs, optimizing packaging to lower FBA size tiers, and improving PPC conversion rates to lower the "per unit" marketing cost. Most veteran sellers aim for a minimum of 25-30% profit margin to account for unexpected returns or price wars.