Amazon FBA Profit Calculator
Total Revenue:
$0.00
Total Amazon Fees:
$0.00
Total Expenses:
$0.00
Net Profit:
$0.00
Net Margin:
0%
ROI (Return on Investment):
0%
How to Calculate Amazon FBA Profits
Selling on Amazon via the Fulfillment by Amazon (FBA) program involves various moving parts. To find your true net profit, you must look beyond just the sale price and product cost. This calculator helps you account for the "hidden" costs that often erode margins for third-party sellers.
Key Metrics Explained
- Referral Fees: This is the commission Amazon takes for every sale. For most categories, this is 15%, though it can range from 8% to 45% depending on the niche.
- FBA Fulfillment Fee: This covers the picking, packing, and shipping of your orders to customers. It is determined by the size and weight of your product.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit of your product.
- Storage Fees: Amazon charges a monthly fee based on the volume (cubic feet) your inventory occupies in their warehouses. This increases significantly during the Q4 holiday season.
Example Calculation
Imagine you sell a yoga mat for $40.00. Your manufacturing cost is $10.00 and shipping it to Amazon's warehouse costs $2.00. Amazon takes a 15% referral fee ($6.00) and charges a $7.00 fulfillment fee. If you spend $3.00 per unit on PPC ads, your total cost is $28.00 ($10+$2+$6+$7+$3). Your net profit would be $12.00, resulting in a 30% profit margin and a 100% ROI on your initial $12.00 investment (COGS + Shipping).
Strategies to Improve FBA Margins
To increase your bottom line, consider optimizing your packaging to move into a smaller size tier, which reduces the FBA Fulfillment Fee. Additionally, monitoring your ACoS (Advertising Cost of Sales) ensures that your PPC spending isn't consuming your entire profit margin.