Price Calculator: Set Optimal Prices for Amazon FBA Products
Published: January 2025
Setting the right price is one of the most important decisions for Amazon sellers. Price too high and you won't sell. Price too low and you lose money. Our Price Calculator helps you find the sweet spot.
Why You Need a Price Calculator
Most sellers guess their prices or copy competitors. But this doesn't account for:
- Your specific costs
- Your target profit margin
- Amazon fees (which vary by category and size)
- Additional costs (PPC, storage, returns)
A price calculator reverse-calculates the exact price you need to achieve your profit goals.
How It Works
Instead of calculating profit from price, it calculates price from profit:
- Enter all your costs
- Set your target profit margin
- Get the exact price you need
The calculator accounts for all Amazon fees and shows you:
- Minimum Price: Break-even (0% profit)
- Recommended Price: With your target margin
- Maximum Price: With 50% margin (reference)
Real-World Example
Let's say you want 25% profit margin on a product:
- Product cost: $10
- Shipping: $2
- Category: Home & Kitchen (15% referral)
- FBA fee: $3.22
- Storage: $0.50
- PPC: $2.50
- Returns: $0.90
- Total costs: $19.12
To achieve 25% profit margin, you need to sell at: $25.49
This gives you $6.37 profit per unit (25% margin) after all costs.
Pricing Strategy Tips
- Start with recommended price: Use calculator as baseline
- Check competition: See what competitors charge
- Consider positioning: Premium vs budget positioning
- Test and adjust: Monitor sales and adjust if needed
- Account for promotions: Price higher if you plan discounts
Common Pricing Mistakes
- Pricing too low (losing money)
- Not accounting for all fees
- Copying competitor prices blindly
- Ignoring profit margin goals
- Not re-calculating when costs change