Amazon Calculator for FBA: Revenue, Costs, & Profit
Calculate your costs and profit margins if you were to fulfill orders through Amazon FBA. Read on to find out how to minimize shipping costs and boost your net profit all while running an Amazon business.
Note: Results based on Amazon’s 2019 pricing for FBA services (not Q4 holiday rates).
Keep reading to learn more about working with a 3PL instead of fulfilling through FBA. If you want to move away from relying on Amazon and focus more on building your brand and selling on your website, ShipBob can help fulfill those orders (as well as Amazon Fulfilled by Merchant orders).
Hear from ecommerce business owners
ShipBob offers FBM and if you utilize Amazon fulfillment today, we highly recommend diversifying your fulfillment options (e.g., use both FBA and FBM) to maximize sales. Learn why sellers have moved off of Amazon to ShipBob for FBM here.
These ecommerce sellers partnered with ShipBob to move business off Amazon and increase their profits.
“In my eyes, ShipBob is competing against the Amazons of the world. Not only are they very cost-competitive and quick, they actually care.”
Carl Protsch, Co-Founder of FLEO
ShipBob helps thousands of ecommerce merchants with fulfillment and strives to be brand-friendly, transparent, and helpful in every interaction and tool or process we develop.
Steve Staffan, Founder and CEO of Brummell Co.
Why you need to calculate Amazon FBA profits and costs
Are you losing money by selling and shipping via Amazon FBA? If you are considering or currently selling products on Amazon FBA, you must make sure that you know your profitability.
Keeping track of Amazon FBA fees may seem cumbersome, but whether you’re launching a new product or are a veteran FBA seller, it’s vital to do the right research and calculations for each product. This includes taking into account order revenue, seller fees, production and fulfillment costs, platform costs, and more.
If Amazon sellers don’t stay on top of constantly-changing Amazon fulfillment fees, you may find that your profits are lower than expected, or even that you’re barely breaking even.
What are FBA fees?
As shown in the Amazon fee calculator above, FBA fees include several different parts of the fulfillment service. This includes:
- Receiving Fees
- Order handling fees
- Pick & pack fees
- Outbound shipping fees
- Monthly storage fees
These fees vary based on a variety of factors, including seasonality, product size and weight, and more. Amazon also charges additional long-term storage fees for inventory that doesn’t sell within a certain time period.
What other costs are associated with FBA?
Beyond the standard fulfillment-based FBA costs listed above, selling and fulfilling through FBA can come at a cost.
Amazon is able to charge FBA fees at somewhat of a discount because they also receive seller fees as a cut of every sale. Seller fees apply to all Amazon merchants, regardless of whether you fulfill with FBA, and can mean that you may take home less profit on every product and sale than you would by selling on your own website.
Another major indirect cost of FBA that you should keep in mind is brand equity. When you use FBA, you lose the ability to highlight your brand. All orders will be shipped in Amazon-branded boxes, and the entire customer experience and communication will take place via Amazon.
If you fulfill orders through a third-party logistics (3PL) provider, such as ShipBob, you can leverage custom packaging to keep your brand front-and-center throughout the shipping and delivery experience.
How do FBA fees compare to ShipBob pricing?
Different 3PLs use different fulfillment pricing models.
FBA fees are made up of several different variable elements. Your total costs can change based on the size and weight of each item you sell, the season, or a variety of other factors.
On the other hand, ShipBob uses a total fulfillment cost pricing model. Our simplified pricing model charges you for receiving inventory, storing inventory monthly, and shipping orders.
Unlike FBA, there are no picking or packing fees for small orders. This makes for a simpler invoice — and often, lower costs — than the FBA pricing model.
Simplicity doesn’t mean you can’t make order fulfillment your own: ShipBob can accommodate many unique business needs, such as kitting and bundles, custom packaging, and more — at an additional cost.
Sources & Disclaimers
This calculator is meant for illustration purposes only and is not a guarantee of any kind on behalf of ShipBob.
1. Amazon pricing and fees taken from here.
2. Calculator does not include taxes, tariffs, and other fees.
3.Storage cost calculations are based on one inventory turn per month in this example. The tool assumes you are only storing the exact amount of inventory you will sell per month.
Request a quote from ShipBob
Enter your details below and we’ll be in touch to learn more about your business.