Calculate true FBA profit after referral fees, fulfillment fees, and storage. Know your margins before you source a single unit.
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Sale Price$32.99
$1$250$500
Product Cost (COGS + Shipping to Amazon)$8.50
$0.50$150$300
Product Category (Referral Fee)
Product Size Tier (Fulfillment Fee)
Monthly PPC Ad Spend per Unit$2.50
$0$10$20
Net Profit per Unit
$13.18
after all Amazon fees
Net margin: 40.0% · Referral: $4.95 · Fulfillment: $3.86
40.0%
Net Margin
-$4.95
Referral Fee
-$3.86
Fulfillment Fee
$1,582
Profit/mo @ 120 units
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Understanding Amazon FBA Fee Structure
Amazon FBA fees come in three layers. First, the referral fee (8–17% depending on category) — taken automatically from your sale price. Second, the fulfillment fee ($3.22 for small standard items, up to $150+ for oversized) — charged per unit shipped. Third, storage fees ($0.87/cubic foot standard, $2.40 peak season) — charged monthly on inventory sitting in Amazon's warehouses.
The most common mistake new FBA sellers make is calculating gross margin without accounting for PPC advertising. Sponsored Products ads are effectively mandatory for new listings to get visibility — budget $1–$5 per unit sold in your first 6 months. Factor this into your unit economics before ordering inventory.
A product priced at $32.99 in the general merchandise category: 15% referral = $4.95, small standard fulfillment = $3.86, $2.50 PPC. Before COGS, Amazon takes $11.31. That's 34% of your revenue off the top. Source accordingly.
What percentage does Amazon FBA take?
Total FBA fees (referral + fulfillment) typically run 25–40% of revenue. Referral: 8–17%. Fulfillment: $3–$10 per unit. Plus storage and PPC. Target products where COGS + FBA fees + ads leave at least 20% net margin.
What is the minimum price for Amazon FBA to be profitable?
Most FBA sellers target $20–$70 as the sweet spot. Under $15, flat fulfillment fees eat too much margin. Over $100, competition and return rates increase. $25–$50 with 20–40% net margin is the FBA gold zone.
How much do Amazon FBA sellers make?
Median FBA seller revenue is $12K–$300K/year. About 50% of sellers profit $1K–$25K/year. Top 10% clear $250K+/year. Margins of 20–30% net are achievable with proper product selection and sourcing.
What size tier should I aim for on Amazon FBA?
Small standard (under 15oz, fits in a shoebox) has the lowest fulfillment fees ($3.22–$4.25). Large standard adds $1–$2. Once you go bulky or oversized, fulfillment fees jump dramatically. Design products to fit small standard when possible.
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