Estimate your net profit, margins, and ROI after Amazon fees.
Amazon Referral Fee:$0.00
Total Amazon Fees:$0.00
Net Profit:$0.00
Net Margin:0.00%
Return on Investment (ROI):0.00%
Profit: $0.00
Understanding Amazon FBA Fees and Profitability
Selling on Amazon through the Fulfillment by Amazon (FBA) program offers incredible scale, but the fee structure can be complex. To ensure your private label or wholesale business remains sustainable, you must account for every cent that Amazon deducts from your disbursement.
Key Metrics Explained
Referral Fee: This is Amazon's "commission" for bringing you a customer. For most categories, this is 15% of the total sale price.
Fulfillment Fee: This covers the cost of picking, packing, and shipping your item to the customer. This depends heavily on the weight and dimensions of your product.
Cost of Goods (COGS): This is your total manufacturing or sourcing cost, including packaging and inserts.
Net Margin: This tells you how much of every dollar in sales you actually keep as profit. A healthy FBA margin is typically between 20% and 30%.
ROI (Return on Investment): This measures the efficiency of your capital. If you spend $10 to make $5 profit, your ROI is 50%.
Example Calculation
If you sell a yoga mat for $40.00:
Product Cost: $10.00
Shipping to Amazon: $1.00
Referral Fee (15%): $6.00
FBA Fulfillment Fee: $7.50
Monthly Storage: $0.20
Total Expenses: $24.70
Net Profit: $15.30
Net Margin: 38.25%
Strategies to Increase FBA Profits
To maximize your Amazon earnings, focus on "Small and Light" packaging to reduce FBA fulfillment tiers. Additionally, negotiate bulk pricing with suppliers to lower your COGS. Monitoring your "Inventory Performance Index" (IPI) is also vital to avoid expensive overstock storage fees during peak seasons like Q4.
function calculateFBAProfit() {
var price = parseFloat(document.getElementById("salePrice").value);
var cogs = parseFloat(document.getElementById("productCost").value);
var shipAmz = parseFloat(document.getElementById("shippingToAmz").value) || 0;
var fbaFee = parseFloat(document.getElementById("fbaFee").value) || 0;
var refPercent = parseFloat(document.getElementById("referralFee").value) || 0;
var storage = parseFloat(document.getElementById("storageFee").value) || 0;
if (isNaN(price) || isNaN(cogs)) {
alert("Please enter the Sale Price and Cost of Goods.");
return;
}
// Calculations
var referralAmount = price * (refPercent / 100);
var totalFees = referralAmount + fbaFee + storage;
var totalExpenses = cogs + shipAmz + totalFees;
var netProfit = price – totalExpenses;
var margin = (netProfit / price) * 100;
var roi = (cogs > 0) ? (netProfit / (cogs + shipAmz)) * 100 : 0;
// Display Results
document.getElementById("fbaResults").style.display = "block";
document.getElementById("resReferral").innerText = "$" + referralAmount.toFixed(2);
document.getElementById("resTotalFees").innerText = "$" + totalFees.toFixed(2);
document.getElementById("resProfit").innerText = "$" + netProfit.toFixed(2);
document.getElementById("resMargin").innerText = margin.toFixed(2) + "%";
document.getElementById("resROI").innerText = roi.toFixed(2) + "%";
document.getElementById("resSummary").innerText = "Net Profit: $" + netProfit.toFixed(2);
// Color coding profit
if (netProfit > 0) {
document.getElementById("resSummary").style.color = "#2e7d32";
} else {
document.getElementById("resSummary").style.color = "#d32f2f";
}
}