Estimate your net profit, margins, and ROI for your FBA products.
Total Revenue:$0.00
Total Amazon Fees:$0.00
Total Landed Cost:$0.00
Net Profit (Per Unit):$0.00
Profit Margin:0%
Return on Investment (ROI):0%
Understanding Amazon FBA Profitability
Selling on Amazon via the Fulfillment by Amazon (FBA) program offers massive scale, but it comes with a complex fee structure. To ensure your e-commerce business remains sustainable, you must calculate your "True Profit" after all hidden costs are accounted for.
Key Components of FBA Fees
Referral Fees: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
Fulfillment Fees: These cover the picking, packing, and shipping of your orders to customers. These fees vary based on the size and weight of your product.
Storage Fees: Amazon charges you for holding inventory in their warehouses. Note that these fees increase significantly during the Q4 holiday season (October–December).
Landed Cost: This includes your manufacturing cost plus the cost to ship the goods from your supplier to an Amazon fulfillment center.
Example Calculation
Imagine you are selling a yoga mat for $35.00.
Product Cost: $10.00
Shipping to Amazon: $1.50
Referral Fee (15%): $5.25
FBA Fulfillment Fee: $6.50
Storage/PPC: $2.00
In this scenario, your total costs are $25.25. Your Net Profit would be $9.75, resulting in a 27.8% profit margin and a 97.5% ROI.
Why ROI and Margin Both Matter
Profit Margin tells you how much of every dollar you keep as profit. It is vital for understanding your buffer against price wars. ROI (Return on Investment) tells you how efficiently your capital is working. An ROI of 100% means you doubled your initial investment in the product.
function calculateFBA() {
var sellPrice = parseFloat(document.getElementById('fba_sellPrice').value) || 0;
var productCost = parseFloat(document.getElementById('fba_productCost').value) || 0;
var shipToAmz = parseFloat(document.getElementById('fba_shippingToAmazon').value) || 0;
var referralRate = parseFloat(document.getElementById('fba_referralFee').value) || 0;
var fulfillment = parseFloat(document.getElementById('fba_fulfillmentFee').value) || 0;
var storage = parseFloat(document.getElementById('fba_storageFee').value) || 0;
var ppc = parseFloat(document.getElementById('fba_ppcCost').value) || 0;
var other = parseFloat(document.getElementById('fba_otherCosts').value) || 0;
// Logic
var referralFeeTotal = sellPrice * (referralRate / 100);
var totalAmzFees = referralFeeTotal + fulfillment + storage;
var landedCost = productCost + shipToAmz + ppc + other;
var totalExpenses = totalAmzFees + landedCost;
var netProfit = sellPrice – totalExpenses;
var profitMargin = (sellPrice > 0) ? (netProfit / sellPrice) * 100 : 0;
var roi = (productCost > 0) ? (netProfit / (productCost + shipToAmz)) * 100 : 0;
// Display
document.getElementById('res_revenue').innerText = '$' + sellPrice.toFixed(2);
document.getElementById('res_fees').innerText = '-$' + totalAmzFees.toFixed(2);
document.getElementById('res_landed').innerText = '$' + landedCost.toFixed(2);
var profitElement = document.getElementById('res_profit');
profitElement.innerText = '$' + netProfit.toFixed(2);
if (netProfit >= 0) {
profitElement.className = 'fba-result-value fba-profit-positive';
} else {
profitElement.className = 'fba-result-value fba-profit-negative';
}
document.getElementById('res_margin').innerText = profitMargin.toFixed(2) + '%';
document.getElementById('res_roi').innerText = roi.toFixed(2) + '%';
document.getElementById('fba_results').style.display = 'block';
}