Selling & Business Models
How do I calculate Amazon FBA profit after fees?
The short answer
Calculate profit from the settlement-level money left after every cost, not from sale price minus product cost. Amazon fees are only one part of the equation. Landed inventory, inbound shipping, preparation, advertising, returns, removals, storage, software, and overhead can change an apparently healthy product into a weak one.
Calculate contribution profit per unit
Use:
Contribution profit = sale price – referral fee – FBA fulfillment fee – landed product cost – inbound cost – advertising per order – return/removal allowance – other variable costs
Suppose one unit sells for $34:
| Cost | Example |
|---|---|
| Sale price | $34.00 |
| Amazon referral and FBA fees | -$11.20 |
| Landed product cost | -$8.00 |
| Inbound prep and freight | -$1.80 |
| Advertising per order | -$4.00 |
| Return/removal allowance | -$1.00 |
| Contribution profit | $8.00 |
The example's contribution margin is about 23.5 percent because $8 divided by $34 is about 0.235. This is illustrative, not a recommended target.
Amazon's Revenue Calculator can estimate selling and fulfillment costs and compare FBA with seller fulfillment. Amazon notes that the results are estimates. Enter the exact category, price, size, and weight, then add costs outside the tool in your own sheet.
Turn monthly costs into net profit
Add monthly subscription, research tools, bookkeeping, insurance, samples, creative work, and other overhead. If overhead is $480 and you sell 120 units, overhead allocation is $4 per unit. In the example, estimated net operating profit becomes $4 per unit before income taxes and owner draws.
Do not divide by an optimistic sales forecast. Calculate at conservative, expected, and strong volumes so you can see how much fixed cost each unit must carry.
Include inventory costs that arrive later
Amazon says FBA costs can include monthly storage, aged-inventory charges, returns processing, removal or disposal, and inbound placement. Its FBA page lists these categories, while Amazon's fee guide explains that storage varies with inventory volume and season.
Create monthly lines for storage, aged inventory, reimbursements, returns, and removals. A profitable sale in January can be offset by stock that sits for months afterward.
Reconcile estimates to actual payouts
Once live, compare each SKU's estimated fees with fee-preview and settlement data. Tie Amazon disbursements to orders, fees, refunds, reserves, and adjustments. Record advertising by advertised SKU and, if possible, by ordered SKU.
Review price, unit cost, dimensions, fees, ad cost, return rate, and sell-through every month. Set an alert when contribution profit falls below your floor. Fast sales are not comforting if every order quietly loses money.
WAHMN's Amazon FBA can help you build the complete profit worksheet and operating routine.
Sources and further reading
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A useful next step is the Product Pricing Worksheet. It helps you calculate FBA profit after product cost, Amazon fees, shipping, returns, and advertising.