1. What is FBA Profit?

FBA (Fulfillment by Amazon) Profit is the net profit you make after accounting for all Amazon fees and the cost of your products. It's a key metric for Amazon sellers to understand their true profitability.

2. How Does the Calculator Work?

The calculator uses the FBA Profit formula:

Where:

• \( Revenue \) — The total sales amount from your Amazon products
• \( FBA Fees \) — Amazon's fulfillment fees including storage and shipping
• \( COGS \) — Cost of Goods Sold (your product cost + shipping to Amazon)

Explanation: This calculation shows your true profit after accounting for all costs associated with selling through Amazon FBA.

3. Importance of FBA Profit Calculation

Details: Calculating FBA Profit accurately is crucial for pricing decisions, inventory management, and overall business profitability. Many sellers focus only on revenue without considering all fees and costs.

4. Using the Calculator

Tips: Enter your product's selling price as Revenue, all Amazon fees as FBA Fees, and your total product cost as COGS. All values must be in USD and non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What's included in FBA Fees?
A: This includes fulfillment fees, storage fees, referral fees, and any other Amazon service fees associated with your product.

Q2: How is COGS different from FBA Fees?
A: COGS is what you pay to manufacture or purchase your product, while FBA Fees are what Amazon charges for their services.

Q3: What's a good FBA Profit margin?
A: This varies by product category, but generally 20-30% is considered healthy after all costs.

Q4: Should I include advertising costs here?
A: Advertising costs are typically considered separately as they can vary month-to-month.

Q5: How often should I calculate FBA Profit?
A: Regularly - at least monthly for each product to monitor profitability trends.