Amazon FBA Profit Calculator
How to Use the Amazon FBA Profit Calculator
Success on Amazon depends on understanding your "net" numbers. Many sellers focus on top-line revenue, but after Amazon takes their cut, the remaining profit can be slim. This calculator helps you breakdown every cost associated with the Fulfillment by Amazon (FBA) program.
Required Inputs:
- Sale Price: The final price the customer pays on Amazon.com.
- COGS: Your "Cost of Goods Sold" — what you paid the manufacturer per unit.
- Referral Fee: Amazon's commission for selling on their platform (usually 15% for most categories).
- FBA Fee: The pick-and-pack fee based on your product's weight and dimensions.
- PPC Spend: Your estimated advertising cost divided by the number of units sold.
Example Calculation
Imagine you are selling a Yoga Mat for $35.00. Your manufacturing cost is $10.00. Shipping to the Amazon warehouse costs $1.00 per unit. Amazon charges a 15% referral fee ($5.25) and an FBA fulfillment fee of $6.00. If you spend $3.00 per unit on PPC ads, your total expenses are $25.25.
Your Net Profit would be $9.75, resulting in a 27.8% Profit Margin and a 88.6% ROI on your inventory investment.
Important FBA Metrics to Watch
Profit Margin: A healthy FBA margin is typically between 20% and 30%. Anything below 15% leaves very little room for price wars or unexpected storage fees.
ROI (Return on Investment): This measures how hard your money is working. An ROI of 100% means you doubled your money (e.g., you spent $10 on a product and made $10 in profit).
Storage Fees: Remember that Amazon increases storage fees during Q4 (October through December). Ensure you adjust your calculations during the holiday season to maintain profitability.