Subtract referral fee, FBA fee and product cost to calculate the true net profit, margin and ROI of an FBA product.
Referral fee is ~15% in most categories; FBA fee depends on product size/weight.
Amazon account & PPC management →On Amazon FBA, profit is what remains after subtracting the referral fee (~15% in most categories), the FBA fulfillment fee and product cost from the sale price. This tool shows net profit, margin and ROI in one view.
Net profit = sale price − product cost − referral fee − FBA fee − other costs. The referral fee is a percentage of the sale price; the FBA fee is a fixed amount based on the product's size/weight tier.
High margin can pair with low ROI (expensive product, slow turnover). Tracking both net margin and ROI on cost shows your true capital efficiency on FBA.
Net profit = sale price − product cost − referral fee − FBA fee − other costs. The referral fee is a percentage of the sale price.
It is roughly 15% in most categories, with some category variation.
It depends on the product's size and weight tier; larger/heavier items cost more.
A sustainable FBA business usually targets 20%+ net margin and a healthy ROI.