Set FBA prices using: Minimum Price = Total Cost Per Unit ÷ (1 - Target Profit Margin %). Include COGS, Amazon referral fee (15%), FBA fulfillment fee, storage fees, and advertising costs. Most successful FBA products maintain a 25-35% net profit margin with selling prices 3-5× the landed cost.
Start with total landed cost (COGS + shipping + prep). Add all Amazon fees (referral ~15%, fulfillment, storage). Add target advertising cost (typically 10-15% of revenue). Then add your target profit margin (25-35%). The formula: Price = Total Costs ÷ (1 - Profit Margin %).
Target 25-35% net profit margin after all costs. At minimum, ensure 15% net margin to sustain the business. Premium/private label products can achieve 40-50% margins. Use the rule of thirds: 1/3 product cost, 1/3 Amazon fees, 1/3 profit.
Repricers are valuable for competitive categories with many sellers. They automatically adjust prices based on competition and Buy Box ownership. Popular options include RepricerExpress, Bqool, and Aura. Set minimum price floors to protect margins.
The Buy Box accounts for ~82% of Amazon sales. FBA sellers have a natural advantage. Price within 2-5% of the current Buy Box price to maintain eligibility. Being the lowest price isn't required - FBA sellers often win the Buy Box at slightly higher prices than FBM competitors.
Build a 3-5% buffer into your pricing to absorb annual fee increases. Review Amazon's fee announcements (usually in Q4 for next year). Update your pricing spreadsheet immediately when new fees take effect. Consider price increases 1-2 months before fee changes.
Track every fee, calculate true profit per unit, and never guess your margins again.
Get ShelfKeeper Templates → →