How do I calculate Amazon FBA profit?
To calculate Amazon FBA profit, take the customer price and subtract landed product cost, Amazon referral fee, FBA pick-pack-ship, storage, ads, returns and any other variable costs. What remains is estimated unit profit. FBA profit is not the same as the fee preview in Seller Central, because the preview usually omits ads, inbound freight and returns.
Do this SKU by SKU. A profitable mid-size item can become unprofitable if it jumps a size tier or if PPC doubles during launch.
Steps
-
Get a current FBA fee quote
Use Amazon’s revenue calculator or fee preview for the correct marketplace, packaging dimensions and weight. Size tier errors are the most common FBA math mistake.
-
Build landed cost
Factory + export + ocean/air + last mile into the FC + prep and labeling. Divide container costs across expected sellable units, not ordered units if you expect damage.
-
Add referral fee
Most categories charge a percentage of the total sales price including shipping to the buyer. Confirm the category rate rather than assuming 15%.
-
Layer ads and returns
Use a realistic TACOS and historical return rate. New launches should model a higher ad line for the first 30–60 days.
-
Compute profit and stress-test
Profit = price − all of the above. Then test −10% price, +20% ads, and a worse size tier so you know the cliff.
FBA profit vs fee preview
The FBA fee preview answers “what Amazon charges to pick, pack and ship this size”. FBA profit answers “what you keep after goods, inbound, referral, FBA, storage, ads and returns”. Mixing the two is why launches look profitable in a screenshot and lose money in the bank. Always add inbound freight and a realistic TACOS. New ASINs should model higher ads for 30–60 days. Aged inventory should add long-term storage so a slow SKU is not treated like a fast one.
FBA vs FBM in the same formula
The formula does not change when you switch fulfillment. Replace the FBA line with postage, packaging labor and a returns handling estimate. Recheck referral and closing fees. Run both scenarios in CrossKit before you commit inbound to Amazon. A slightly worse FBA fee can still win if it lifts conversion enough to cut TACOS, but that is a measured trade, not a default.
Example
US FBA, $32.00 price. Landed $9.40. Referral 15% = $4.80. FBA $6.10. Storage $0.35. Ads $3.50. Returns allowance $0.90. FBA profit ≈ 32 − 9.40 − 4.80 − 6.10 − 0.35 − 3.50 − 0.90 = $6.95 (22%). If the unit is oversized and FBA becomes $9.80, profit falls to $3.25 (10%). That is usually too thin to restock without a price change. Write the lines in a sheet so you can change ads without rebuilding the whole model. That is the habit that keeps FBA profit useful after launch week.
Common mistakes
-
Using dimensional weight from the product, not the carton
Amazon charges the packaged unit. A gift box can move you up a tier.
-
Ignoring long-term storage
Aged inventory fees can wipe a year of thin margins in one quarter.
-
Using product net weight instead of packaged weight
Poly bags, inserts and gift boxes change size tier. Measure the unit Amazon will receive.
Recommended tool
Profit Calculator
Enter FBA fees as the fulfillment line in CrossKit’s Profit Calculator, then add ads and landed cost so the FBA quote is not the whole story.
Frequently Asked Questions
Is FBA profit the same as payout?
No. Payout timing, reimbursements and reserves differ from a unit model.
Should I include PPC in FBA profit?
Yes if you want a restock decision. Fee-only profit is a fulfillment quote, not a business result.
Where do I get the FBA fee number?
Use Amazon’s revenue calculator or the fee preview on the listing for the correct marketplace, weight and packaged dimensions. Do not reuse last year’s screenshot.
Should inbound be per unit or per shipment?
For unit profit, divide the shipment by expected sellable units. For cash planning, also look at the whole container as a cash out before the first sale.