Amazon FBA Profit Margin Calculator. Are Your Products Profitable?

 

Selling with Amazon FBA is a great way to grow a profitable business. Still, how can you know whether your business is going to be profitable? Do you know all your future expenses on Amazon? And finally, will your revenue exceed the expenses?

Calculations are key to knowing that. To know more details about how it works, please keep reading, we will explain different Amazon fees (storage, categories fees, etc.) and tell more about the major mistakes made by Amazon FBA sellers. We recommend you learning on others’ experience not to make the same mistakes in the future.

 

Profit Margin Calculator for Amazon FBA Sellers

Keep in mind that online eCommerce business is not as simple as you buy goods from a manufacturer and resell them on the Amazon marketplace. There are also costs of samples, shipments, storage, promotion and so on.

Even if you don’t know how much everything costs, you can see your overall profit. However, these figures will tell you nothing unless you calculate your expenses and get pure profit.

Amazon offers FBA sellers their own tools for performing calculations. It is called Fulfillment by Amazon Revenue Calculator.

Also, we have a spreadsheet with necessary calculations that sellers usually use. Feel free to use this spreadsheet to estimate your future profit/expenses balance. Download it by clicking the link below and type in your values. The rest of the work is already done for you.

 

Click here to Download the Amazon FBA Profit Margin Calculator spreadsheet

 

How Does These Profit Calculators Work?

Amazon FBA calculator is a guide in evaluating FBA business only. If you use FBM model for working on Amazon, they don’t guarantee the accuracy of calculations. This is a helpful tool for sellers but not the only one source of truth. You better keep an eye on changes in fees and other costs.

 

In general, there are 3 categories for FBA costs included to our spreadsheet:

  1. Upfront ones (samples, products, photos, and shipping).
  2. Variable costs (storage and FBA fees, fees for returns, and so on).
  3. Marketing expenses (PPC campaigns and other promotions).

 

Amazon FBA calculator takes into account the following ones:

  • Pick and pack
  • Order handling
  • Weight handling
  • Inbound shipping
  • Outbound shipping
  • 30-day storage

 

Once you fill in all the lines in the Amazon profit calculator, it will show you the possible Net Profit and Net Margin.

Still, FBA sellers need to know EVERYTHING about Amazon fees to know the principle of these calculations. Let’s dive deeper into the details and see what fees does Amazon charges from online sellers.

 

More about Amazon Fees

Let’s begin with the general Amazon fees and proceed to specific FBA fees. So, if you are an FBA seller, just have a quick glance at the first part and move to the second part. Still, it is highly recommended to learn the details about referral fees that vary from category to category.

Also, these are fees for the US sellers, as they differ for other countries.

 

General Fees

Every seller has to pay for their participation in the world selling service. Here is a quick overview of the general fees you need to pay to Amazon.

  1. Monthly subscription that costs $39.99 per month for professional sellers. Individual sellers don’t pay any subscription fees, however, they pay commissions for each sold product.
  2. Per item fees. This is the commission of $0.99 per each sold item that individual sellers pay to Amazon. Professional sellers don’t pay this fee.
  3. Selling fees include a fee for the product’s price, any gift wraps, shipping costs, and other charges. Here you can find Shipping Prices for Individual Sellers.
  4. Referral fees or so-called categories fees which sellers pay per each sold item. They vary by category and may be minimum referral fees or may take some percentage from the product’s price. Here is Amazon fee schedule where you can find the calculations for each category. Fees for FBA sellers can vary, so read further, we’ll provide you with more information about them a bit later.
  5. High-volume listing fee is based on the number of non-media offers in sellers’ listings. If your listing consists of 100.000 ASINs, Amazon charges $0.005 per additional ASIN. Find more information on this fee on the official website.
  6. Refund administration fee is ordinary $5.00 or 20% or referral fee. It is charged in case of refunds.

 

Amazon FBA Fees

  1. Fulfillment fees. You can see their precise calculations by this link. In general, Amazon uses category type and size tiers for calculating these FBA fees. Be very careful and check twice if your product fits the certain size as if it is at least by 1 cm larger than you thought, Amazon will charge a higher fee from you. Here is an overview of average fees depending on size:
  2. Monthly storage fees. These ones are charged for everything stored in Amazon warehouses based on the month, product size, and your average inventory volume.
  3. Long-term storage fees are charged when your inventory stays in Amazon centers for a long time. Inventory in Amazon fulfillment centers is assessed a long-term storage fee in addition to the monthly storage fee. Find the details following the link above and keep an eye on how long your products stay in Amazon warehouses.
  4. Removal order fees are charged for return, disposal or liquidation of products. Amazon charges for each item processed. The amount of fee depends on the product size.
  5. Returns processing fees are charged for those orders where Amazon offers customers free return shipping. See the rates by this link.
  6. Amazon charges Unplanned service fees when products arrive at a warehouse without labeling and other proper preparation so they have to do that themselves. This fee is charged per item.

 

Most Common Mistakes of Amazon Sellers

So, after we have learned everything about all existing Amazon fees, let’s see what are the most common mistakes among FBA sellers. They are usually miscalculated while paying:

  1. Fulfillment fees.
  2. Storage fees.
  3. Categories (referral) fees.

Some of FBA sellers just forget about the existence of referral fees, some of them don’t know the certain size of their products and finally, have to pay more than it was expected. Also, keep in mind that the longer you keep your products in Amazon fulfillment centers, the more fees you’ll pay for that.

Also, keep in mind that fees may differ from country to country, so please check Amazon official website twice before adding data to this revenue calculator.

 

Calculate Your Amazon FBA Future Revenue!

You now know how to calculate profit with the FBA fee calculator taking into account all the possible fees charged by Amazon. Don’t miss a penny, if you want to become a successful seller.

And don’t hesitate to use our profit margin calculator in Excel to make sure that you haven’t missed anything.

We hope that your margin will be high and the expenses low!