Calculate FBA fees, profit margins, and ROI for your products
Amazon FBA (Fulfillment by Amazon) fees include referral fees (8-15% of sale), fulfillment fees (based on size/weight), and monthly storage fees. Profit = Sale Price - All Costs.
Formula
Profit = Sale Price - Product Cost - Referral Fee - FBA Fee - Storage Fee
For a $25 item: $25 - $8 cost - $3.75 referral (15%) - $3.50 FBA - $0.25 storage = $9.50 profit (38% margin).
Amazon provides an official FBA calculator—verify estimates before sourcing products.
Q4 storage fees are 3x higher. Plan inventory to avoid storing through holidays unless selling then.
Small dimension changes can push you into higher fee tiers. Optimize packaging.
Categories like apparel have 20-30% return rates. Build this into your pricing.
Determine if a product can be profitable before sourcing.
Calculate minimum viable price for target profit.
Know your cost ceiling when negotiating with manufacturers.
Project revenue and profit for business planning.
Amazon takes 8-15% of sale price depending on category. Most categories are 15%. Electronics is lower (8%). Individual sellers also pay $0.99 per sale.
Based on package size and weight tiers. Small standard items: ~$3.22. Large standard: $4.75+. Oversized: $8-150+. Check Amazon's fee schedule for exact rates.
Standard: $0.75/cubic foot (Jan-Sep), $2.40 (Oct-Dec). Long-term storage (365+ days): additional $6.90/cubic foot. Keep inventory lean.
Aim for 30%+ net margin after all fees. Below 20% is risky—price fluctuations or fee increases could eliminate profit.
FBA provides Prime badge, customer service, and scalability. Worth it for most sellers unless you have high-volume, low-margin products.
Returns processing ($2-5+), removal/disposal fees, unplanned service fees, and advertising costs (PPC) significantly impact true profitability.