Amazon FBA Profit Calculator
Total Amazon Fees:
Total Expenses:
Net Profit:
Profit Margin:
ROI:
How to Use the Amazon FBA Profit Calculator
Success on Amazon depends on understanding your "true" net margin. Many sellers focus on revenue but forget the complex fee structure of Fulfillment by Amazon (FBA). This calculator helps you break down every cost associated with your product.
Understanding the Key Metrics
- Selling Price: The final price the customer pays for your item on Amazon.
- Cost of Goods Sold (COGS): The amount you pay your manufacturer per unit, including packaging.
- Referral Fee: Amazon's "commission" for selling on their platform (usually 15% for most categories).
- Fulfillment Fee: The flat fee Amazon charges to pick, pack, and ship your item to the customer.
- Storage Fees: Monthly costs based on the volume (cubic feet) your inventory occupies in Amazon warehouses.
Example Calculation
If you sell a yoga mat for $40, buy it for $10, pay $2 for shipping to Amazon, and Amazon takes $6 (Referral) + $7 (FBA Fee), your net profit would be calculated as follows:
$40 – ($10 + $2 + $6 + $7) = $15 Profit.
Your ROI would be 150% ($15 profit / $10 product cost), and your Margin would be 37.5% ($15 profit / $40 revenue).
Strategies to Increase FBA Margins
To improve your profitability, consider optimizing your packaging to reduce the "FBA Fulfillment Fee" (which is based on weight and size tiers). Additionally, monitor your "Monthly Storage Fees" closely—excess inventory can quickly eat away at your net margins during peak seasons like Q4.