Calculate your net margins, ROI, and Amazon fees accurately.
Total Amazon Fees:$0.00
Total Landed Cost:$0.00
Net Profit:$0.00
Profit Margin:0%
ROI (Return on Investment):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 remain profitable, you must account for every penny that Amazon deducts before the disbursement hits your bank account.
Key Components of FBA Fees
Referral Fees: This is Amazon's commission for selling on their platform. It typically ranges from 8% to 15% depending on the category.
Fulfillment Fees: These cover the cost of picking, packing, and shipping your product to the customer. This fee is determined by the weight and dimensions of your product.
Storage Fees: Amazon charges for the space your inventory occupies in their fulfillment centers. These fees increase significantly during the Q4 holiday season (October–December).
Cost of Goods Sold (COGS): This is your manufacturing or wholesale cost per unit, including any packaging.
Example Profit Calculation
Let's look at a typical scenario for a standard-sized product:
Item
Cost
Selling Price
$30.00
Product Cost (COGS)
$7.00
Referral Fee (15%)
$4.50
FBA Fulfillment Fee
$5.00
Shipping to Amazon
$0.50
Net Profit
$13.00
Profit Margin
43.3%
How to Improve Your FBA Margins
If your margins are slim (below 15%), consider the following strategies:
Optimize Packaging: Reducing the size or weight of your product packaging can drop you into a lower FBA fulfillment tier, saving dollars per unit.
Bulk Shipping: Use sea freight instead of air freight for inventory replenishment to lower your per-unit inbound shipping costs.
Improve PPC Efficiency: Monitor your ACoS (Advertising Cost of Sales). If marketing is eating your profit, refine your keyword targeting.
Negotiate with Suppliers: Once you have consistent sales volume, negotiate a 5-10% discount on manufacturing costs.
function calculateFBAProfit() {
var sellingPrice = parseFloat(document.getElementById('sellingPrice').value) || 0;
var cogs = parseFloat(document.getElementById('cogs').value) || 0;
var shippingToFBA = parseFloat(document.getElementById('shippingToFBA').value) || 0;
var referralPercent = parseFloat(document.getElementById('referralFeePercent').value) || 0;
var fulfillmentFee = parseFloat(document.getElementById('fulfillmentFee').value) || 0;
var storageFee = parseFloat(document.getElementById('storageFee').value) || 0;
var adsCost = parseFloat(document.getElementById('adsCost').value) || 0;
var returnsMisc = parseFloat(document.getElementById('returnsMisc').value) || 0;
if (sellingPrice 0) {
roi = (netProfit / investment) * 100;
}
// Display Results
document.getElementById('resAmazonFees').innerText = "$" + totalAmazonFees.toFixed(2);
document.getElementById('resTotalCost').innerText = "$" + totalCosts.toFixed(2);
var profitElement = document.getElementById('resNetProfit');
profitElement.innerText = "$" + netProfit.toFixed(2);
if (netProfit >= 0) {
profitElement.className = "result-value profit-positive";
} else {
profitElement.className = "result-value profit-negative";
}
document.getElementById('resMargin').innerText = profitMargin.toFixed(2) + "%";
document.getElementById('resROI').innerText = roi.toFixed(2) + "%";
document.getElementById('fbaResults').style.display = 'block';
}