Amazon Seller Revenue & Profit Calculator
Understanding Your Amazon Seller Profitability
Selling on Amazon can be a highly lucrative venture, but understanding your true profitability requires careful calculation of all associated costs. The Amazon Seller Revenue & Profit Calculator helps you estimate your potential monthly revenue, total costs, and net profit, giving you a clear picture of your financial performance.
How to Use the Calculator:
- Selling Price per Unit ($): Enter the price at which you sell one unit of your product on Amazon.
- Cost of Goods Sold (COGS) per Unit ($): This is the direct cost to produce or acquire one unit of your product. Include manufacturing costs, supplier costs, and any inbound shipping to your warehouse before sending to Amazon.
- Estimated Monthly Units Sold: Your projection for how many units you expect to sell in a month.
- Amazon Referral Fee (%): Amazon charges a referral fee for each item sold, which is a percentage of the selling price. This percentage varies by product category (e.g., 8% for electronics accessories, 15% for most categories, 45% for Amazon Device Accessories).
- FBA Fulfillment Fee per Unit ($): If you use Fulfillment by Amazon (FBA), this is the fee Amazon charges to pick, pack, and ship your product to the customer. This fee depends on the product's size and weight.
- Shipping Cost to Amazon per Unit ($): The cost you incur to ship one unit of your product from your supplier or warehouse to an Amazon fulfillment center.
- Advertising Spend per Unit ($): Your estimated advertising cost per unit sold. This can be calculated by dividing your total monthly advertising budget by your estimated monthly sales volume.
Understanding the Results:
- Total Sales Revenue: The total income generated from selling your estimated monthly units.
- Total Cost of Goods Sold (COGS): The total direct cost of the products sold.
- Total Amazon Referral Fees: The total amount Amazon charges for referring customers to your product.
- Total FBA Fulfillment Fees: The total cost for Amazon to handle storage, packing, and shipping.
- Total Shipping to Amazon Costs: The total cost to get your inventory to Amazon's warehouses.
- Total Advertising Spend: Your total investment in Amazon advertising for the month.
- Total Operating Costs: The sum of all calculated costs (COGS, referral fees, FBA fees, shipping to Amazon, advertising).
- Net Profit: Your total sales revenue minus all operating costs. This is your actual profit before taxes.
- Profit Margin (%): Your net profit expressed as a percentage of your total sales revenue. A higher profit margin indicates a more efficient and profitable business.
Example Scenario:
Let's say you're selling a gadget for $25.00. Your COGS is $8.00. You expect to sell 500 units per month. The Amazon referral fee is 15%, FBA fulfillment is $4.50 per unit, shipping to Amazon costs $0.75 per unit, and you spend $2.00 per unit on advertising.
- Selling Price: $25.00
- COGS: $8.00
- Monthly Units: 500
- Referral Fee: 15%
- FBA Fee: $4.50
- Shipping to Amazon: $0.75
- Advertising: $2.00
Using the calculator with these values would yield:
- Total Sales Revenue: $12,500.00 (500 * $25.00)
- Total COGS: $4,000.00 (500 * $8.00)
- Total Referral Fees: $1,875.00 (500 * ($25.00 * 0.15))
- Total FBA Fees: $2,250.00 (500 * $4.50)
- Total Shipping to Amazon: $375.00 (500 * $0.75)
- Total Advertising Spend: $1,000.00 (500 * $2.00)
- Total Operating Costs: $9,500.00
- Net Profit: $3,000.00 ($12,500.00 – $9,500.00)
- Profit Margin: 24.00%
This calculator is a powerful tool for planning and optimizing your Amazon business. By adjusting the variables, you can see how changes in pricing, costs, or sales volume impact your bottom line.