Overview
Learn how to accurately calculate your Amazon FBA profit margins by accounting for all fees, COGS, shipping costs, and overhead expenses.
ShelfKeeper Knowledge Base by ARJE Bookkeeping
To calculate Amazon FBA profit margins, subtract all costs (product cost, FBA fees, referral fees, shipping, advertising, and overhead) from your revenue, then divide by revenue. A healthy FBA profit margin is typically 15-30% after all expenses.
Learn how to accurately calculate your Amazon FBA profit margins by accounting for all fees, COGS, shipping costs, and overhead expenses.
A good profit margin for Amazon FBA is typically between 15-30% after all expenses. Top sellers aim for 25%+ net margins. Margins below 10% may not be sustainable long-term after accounting for all costs.
FBA fees include fulfillment fees (pick, pack, ship), monthly storage fees, and referral fees (typically 15%). Use Amazon's Revenue Calculator to estimate total FBA fees per unit, then subtract from your selling price along with COGS.
Yes, always include advertising costs (PPC/ACoS) in profit margin calculations. Many sellers overlook this, leading to inflated profit estimates. Track your TACoS (Total Advertising Cost of Sale) for the most accurate picture.
Recalculate profit margins monthly at minimum, and after any price changes, fee updates, or supplier cost changes. Use a tool like ShelfKeeper to automate this tracking in real-time.
ShelfKeeper helps Amazon FBA sellers track profits, expenses, and tax deductions in one place.
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