Estimate your net margins and ROI for private label products.
Total Fees & Costs:
Net Profit (Per Unit):
Net Margin:
ROI (Return on Investment):
Understanding Amazon FBA Profitability
Selling on Amazon via Fulfillment by Amazon (FBA) is a lucrative business model, but hidden fees can quickly erode your margins. To succeed, you must calculate your "True Profit" after accounting for every expense.
Key Metrics Explained
COGS (Cost of Goods Sold): This is the manufacturing cost of your product.
Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total sale price.
Fulfillment Fee: This covers picking, packing, and shipping your product to the customer. It is based on the weight and dimensions of the item.
ROI (Return on Investment): Calculated by dividing your Net Profit by your initial investment (COGS + Shipping). An ROI of 100% means you doubled your money.
Example Calculation
If you sell a yoga mat for $40.00:
Product Cost: $10.00
Shipping to Amazon: $2.00
Referral Fee (15%): $6.00
FBA Fee: $7.50
Storage & PPC: $4.50
Total Expenses: $30.00
Net Profit: $10.00 (25% Margin)
In this scenario, your total investment was $12.00 (COGS + Shipping), resulting in an ROI of 83.3%.
function calculateFBA() {
var salePrice = parseFloat(document.getElementById('salePrice').value) || 0;
var cogs = parseFloat(document.getElementById('cogs').value) || 0;
var shippingToAmz = parseFloat(document.getElementById('shippingToAmz').value) || 0;
var referralRate = parseFloat(document.getElementById('referralRate').value) || 0;
var fbaFee = parseFloat(document.getElementById('fbaFee').value) || 0;
var storageFee = parseFloat(document.getElementById('storageFee').value) || 0;
var ppcCost = parseFloat(document.getElementById('ppcCost').value) || 0;
if (salePrice 0) ? (netProfit / investment) * 100 : 0;
document.getElementById('totalCosts').innerText = "$" + totalExpenses.toFixed(2);
var profitEl = document.getElementById('netProfit');
profitEl.innerText = "$" + netProfit.toFixed(2);
profitEl.className = netProfit >= 0 ? "fba-result-val profit-positive" : "fba-result-val profit-negative";
document.getElementById('netMargin').innerText = margin.toFixed(2) + "%";
document.getElementById('roi').innerText = roi.toFixed(2) + "%";
document.getElementById('fbaResults').style.display = 'block';
}