As an Amazon FBA seller, I've learned the hard way that guessing your fees leads to losing money. Here's the exact method I use to calculate profit before I buy inventory.
The Three Costs You Must Track
- Amazon Referral Fee — Usually 8-15% of selling price depending on category
- FBA Fulfillment Fee — Based on weight and size tier ($3-$8+)
- Storage Cost — Monthly fee per cubic foot ($0.75 standard)
The Simple Formula:
Net Profit = Selling Price - Cost of Goods - (Referral Fee + FBA Fee + Storage Fee + Closing Fee)
I built a free Google Sheets calculator that does all this automatically. Just enter your product details and it shows your exact profit margin.
→ Grab the template here: https://microtoolsb2b.gumroad.com/l/ql-lWx_7RdHKapnWbyWeUw==
Pro tip: Always check profit margin before ordering inventory. Target >30% margin after ALL fees.
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