Calculate your net profit, margins, and ROI after Amazon fees.
Net Profit
$0.00
Margin
0%
ROI
0%
Understanding Amazon FBA Profitability
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but the fee structure can be complex. To maintain a healthy business, you must account for every cent that leaves your pocket before the disbursement hits your bank account.
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 flat fee per unit based on the weight and dimensions of your product. This covers picking, packing, and shipping to the customer.
COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit of your product.
ROI (Return on Investment): Calculated as (Net Profit / Product Cost). This tells you how much money you make back for every dollar spent on inventory.
FBA Profit Calculation Example
Imagine you are selling a yoga mat for $40.00. Here is how the math typically breaks down:
Expense Type
Amount
Selling Price
$40.00
Product Cost + Shipping to Amazon
-$12.00
Amazon Referral Fee (15%)
-$6.00
Fulfillment Fee (Large Standard)
-$7.50
Net Profit
$14.50
Net Margin
36.25%
How to Improve Your FBA Margins
If your margins are below 20%, your business is at risk from small fluctuations in PPC costs or storage fees. To increase profitability, consider:
Optimizing Packaging: Small changes in dimensions can move your product from "Large Standard" to "Small Standard," saving dollars per unit in fulfillment fees.
Bulk Shipping: Use sea freight instead of air freight to lower your "Shipping to Amazon" cost per unit.
PPC Efficiency: Monitor your ACoS (Advertising Cost of Sales) closely. High-volume sales are meaningless if your ad spend eats all the profit.
function calculateAmazonProfit() {
// Get Input Values
var price = parseFloat(document.getElementById('fba_sellingPrice').value);
var cost = parseFloat(document.getElementById('fba_unitCost').value);
var shipToAmz = parseFloat(document.getElementById('fba_shippingToAmazon').value) || 0;
var refPercent = parseFloat(document.getElementById('fba_referralFee').value) || 0;
var fulfillFee = parseFloat(document.getElementById('fba_fulfillmentFee').value) || 0;
var misc = parseFloat(document.getElementById('fba_miscCosts').value) || 0;
// Validation
if (isNaN(price) || isNaN(cost)) {
alert("Please enter at least the Selling Price and Product Cost.");
return;
}
// Calculations
var referralFeeAmount = price * (refPercent / 100);
var totalExpenses = cost + shipToAmz + referralFeeAmount + fulfillFee + misc;
var netProfit = price – totalExpenses;
var margin = (netProfit / price) * 100;
var roi = (netProfit / (cost + shipToAmz)) * 100;
// Display Results
var profitEl = document.getElementById('res_netProfit');
var marginEl = document.getElementById('res_margin');
var roiEl = document.getElementById('res_roi');
profitEl.innerHTML = "$" + netProfit.toFixed(2);
marginEl.innerHTML = margin.toFixed(2) + "%";
roiEl.innerHTML = roi.toFixed(2) + "%";
// Color coding
if (netProfit > 0) {
profitEl.className = "profit-positive";
} else {
profitEl.className = "profit-negative";
}
// Smooth scroll to results on mobile
if (window.innerWidth < 600) {
document.getElementById('fba_results_area').scrollIntoView({ behavior: 'smooth' });
}
}