Amazon FBA Profit Calculator
Total Amazon Fees:
$0.00
Total Cost of Goods (COGS):
$0.00
Net Profit per Unit:
$0.00
Profit Margin:
0%
ROI (Return on Investment):
0%
Understanding Your Amazon FBA Profit Margins
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 remain profitable, sellers must account for every penny—from the initial manufacturing cost to the final delivery at the customer's doorstep.
Key Components of the FBA Calculation
- Selling Price: The list price of your product on Amazon.
- Referral Fee: Amazon's "commission" for selling on their platform. This is typically 15% for most categories, but can range from 8% to 45%.
- Fulfillment Fee: A flat fee per unit based on the weight and dimensions of your product. This covers picking, packing, and shipping.
- COGS (Cost of Goods Sold): This includes the price you pay the manufacturer plus the "landed cost" (shipping from the factory to Amazon's warehouse).
- PPC & Marketing: Pay-Per-Click costs are often overlooked. If you spend $300 to sell 100 units, your marketing cost is $3 per unit.
Realistic Example:
If you sell a Yoga Mat for $35.00:
– Product Cost: $10.00
– Shipping to Amazon: $1.00
– Referral Fee (15%): $5.25
– FBA Fee (Large Standard): $6.00
– PPC Spend: $4.00
– Net Profit: $8.75
– Margin: 25%
If you sell a Yoga Mat for $35.00:
– Product Cost: $10.00
– Shipping to Amazon: $1.00
– Referral Fee (15%): $5.25
– FBA Fee (Large Standard): $6.00
– PPC Spend: $4.00
– Net Profit: $8.75
– Margin: 25%
How to Improve Your FBA ROI
To maximize your ROI (Return on Investment), focus on two main levers: reducing your landed cost through bulk manufacturing orders and optimizing your packaging dimensions. Since FBA fees are based on size tiers, reducing your box size by even half an inch can sometimes move your product into a lower fee tier, saving you dollars per unit instantly.
The Impact of Returns
Returns are an inevitable part of the Amazon ecosystem. A 3-5% return rate is standard for many categories. When a customer returns a product, you often lose the original fulfillment fee and may have to pay a "repackaging" or disposal fee if the item is no longer sellable. Our calculator includes a returns percentage to help you build a buffer for these costs.