Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Amazon FBA products.
Total Amazon Fees:
$0.00
Total Product Expenses:
$0.00
Net Profit Per Unit:
$0.00
Profit Margin:
0%
Return on Investment (ROI):
0%
Understanding Amazon FBA Profitability
Selling on Amazon using the Fulfillment by Amazon (FBA) program offers incredible scale, but the fee structure can be complex. To ensure your business is sustainable, you must look beyond the "Selling Price" and account for every penny that leaves your pocket.
Key Fees to Track
- Referral Fee: This is Amazon's "commission." For most categories, this is 15% of the total selling price.
- Fulfillment Fee: This covers picking, packing, and shipping your product to the customer. It is based on the weight and dimensions of your item.
- Monthly Storage: Amazon charges you for the space your inventory occupies in their warehouses. This price usually increases during Q4 (October–December).
- PPC/Advertising: Most successful sellers spend between 5% and 15% of their revenue on Amazon Advertising to maintain visibility.
A Realistic Example
Imagine you sell a yoga mat for $35.00. Your manufacturing cost is $8.00 and shipping to Amazon costs $1.50 per unit. Amazon takes a 15% referral fee ($5.25) and an FBA fulfillment fee of $6.50. You spend roughly $3.00 per unit on PPC ads.
In this scenario, your total costs are $24.25. Your net profit is $10.75, resulting in a 30.7% profit margin and a 113% ROI on your inventory spend.
How to Improve Your Margins
If your margins are below 20%, consider the following strategies:
- Optimize Packaging: Small reductions in box dimensions can move your product into a lower FBA fee tier.
- Bulk Sourcing: Negotiate lower COGS with your supplier by ordering larger quantities.
- Increase Prices: Even a $1 increase in price goes directly to your bottom line (minus the referral fee).