Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA products.
How to Use the Amazon FBA Profit Calculator
Success on Amazon depends on understanding your "true" margins. Many sellers only look at the product cost and Amazon's fulfillment fee, forgetting crucial expenses like PPC ad spend, shipping to the warehouse, and monthly storage fees. Our calculator helps you visualize your bottom line before you source your next product.
Explanation of Key Metrics
- Sale Price: The list price of your item on Amazon.com.
- Product Cost: What you pay the manufacturer per unit (EXW or FOB price).
- Shipping to Amazon: The cost of freight, customs, and domestic transport divided by the total number of units in the shipment.
- Referral Fee: Amazon's "commission," usually 15% for most categories.
- Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item to the customer.
- ROI (Return on Investment): Calculated as (Net Profit / Total Cost of Goods). This tells you how hard your money is working for you.
Example Calculation
Imagine you sell a yoga mat for $45.00. Your manufacturing cost is $10.00 and shipping to the Amazon warehouse is $3.00. Amazon takes a 15% Referral Fee ($6.75) and an FBA Fee of $7.50. If you spend $5.00 per unit on PPC ads, your total expenses are $32.25. Your Net Profit would be $12.75, representing a 28.3% Margin and a 98% ROI.
Strategies to Improve FBA Margins
To increase your profit, focus on reducing your landed cost by negotiating with suppliers or optimizing packaging to fit into smaller FBA size tiers. Additionally, monitoring your ACOS (Advertising Cost of Sales) ensures your PPC spend doesn't eat your entire profit margin.