Selling on Amazon is a volume game, and knowing your exact net margin down to the penny is critical. Our free FBA Profit Calculator gives you a complete breakdown of Amazon's complex fee structure.
The Three Main Amazon FBA Fees
- Referral Fee: Amazon's "commission" for selling on their platform. This is usually 15%, but varies heavily by category. For example, Consumer Electronics is 8%, while Clothing & Accessories is 17%.
- FBA Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item to the customer. This is based strictly on the weight and dimensions of your product. Small, lightweight items cost around $3.22, while heavy oversized items can cost $20+.
- Monthly Storage Fee: The cost to store your inventory in Amazon's warehouses. This is calculated per cubic foot. *Warning: Storage fees almost triple during Q4 (October-December).*
Why FBA Sellers Lose Money
The most common mistake new Amazon sellers make is ignoring inbound shipping costs and PPC ad spend.
If your product costs $5, sells for $20, and FBA fees are $8, it looks like you have $7 in profit. But if it cost $2 to ship from China to the FBA warehouse, and you spend $4 per unit on Amazon PPC ads, your true net profit is only $1.
Use our calculator to establish your baseline FBA margin, ensuring you leave enough room in the margin to afford PPC advertising.