Calculating true profit on Amazon FBA is more complex than it seems. Many sellers only look at selling price minus product cost, but that's not your real profit. Amazon charges multiple fees that can eat into your margins significantly.

Why You Need a Profit Calculator

Amazon FBA has over 15 different fees that can impact your profit:

• Referral fees (8-20% depending on category)
• FBA fulfillment fees (based on size and weight)
• Monthly storage fees
• Long-term storage fees
• Returns processing fees
• Advertising costs (PPC)
• And more...

Without calculating all these fees, you might think a product is profitable when it's actually losing money.

How to Calculate True Profit

Our FBA Profit Calculator makes it easy. Here's what you need:

1. Product Details: Selling price, cost, category
2. Specifications: Weight, dimensions, monthly volume
3. Additional Costs: PPC, storage, returns, other expenses

The calculator automatically:

• Calculates referral fees based on category
• Determines size tier and FBA fees
• Estimates storage fees
• Accounts for returns
• Shows your true net profit

Real-World Example

Let's say you're selling a $29.99 kitchen product:

• Product cost: $12
• Shipping: $2
• Category: Home & Kitchen (15% referral)
• Size: Small Standard

Without calculating fees, you might think: $29.99 - $14 = $15.99 profit (53% margin)

But after all Amazon fees:

• Referral fee (15%): $4.50
• FBA fee: $3.22
• Storage: $0.50
• Returns: $0.90
• PPC: $2.50
• Total fees: $11.62

True profit: $29.99 - $14 - $11.62 = $4.37 (15% margin)

That's a huge difference! This is why you need a profit calculator.

Best Practices

• Always calculate profit before sourcing products
• Aim for at least 30% profit margin
• Account for all costs, including advertising
• Use realistic sales volume estimates
• Compare multiple products before deciding