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E-Commerce, Amazon & Shopify

E-Commerce & Amazon FBA Profit Calculator

Model exact unit economics. Factor in wholesale COGS, marketplace referral fees, FBA fulfillment, customer shipping, and advertising ad spend (ACOS).

Unit Financial Inputs

$
$

Manufacturing + inbound sea/air freight per unit.

%

Amazon standard is 15%.

$
$
%

Profit & Margin Realization

Net Profit per Unit
$9.89
24.7% Net Profit Margin
Monthly Net Income
$4,945
At 500 units / month
Per-Unit Cost Waterfall
Product COGS: $9.50
Marketplace Referral Fee: $6.00
Fulfillment (FBA) Fee: $5.40
Marketing / Ad CPA: $8.00
Return Loss Provision: $1.20
Net Profit Remaining: $9.89
Return on Cost (ROI): 104.1%
Max Breakeven Ad CPA: $17.89
E-Commerce Economics

How to Calculate True E-Commerce Net Profit Margin?

Many beginner e-commerce sellers mistakenly calculate profit by subtracting wholesale cost from retail price. In reality, modern marketplaces like Amazon and Shopify deduct substantial transactional overhead: a 15% platform referral fee, pick-and-pack fulfillment (FBA) fees, customer return write-offs, and advertising customer acquisition costs (CAC/ACOS). True Net Profit Margin is what remains after ALL deductions: Net Margin = (Net Profit / Retail Price) × 100.

Key Metrics Every Online Seller Must Track

  • Max Breakeven CPA: The absolute maximum advertising cost per acquisition you can sustain before becoming unprofitable.
  • Target ACOS (Advertising Cost of Sales): Ad Spend / Attributed Sales Revenue. Keeping ACOS below your gross margin ensures paid ads generate positive cash flow.
  • Return Provision: Unsaleable inventory and processing fees caused by 3% to 15% customer return rates in retail apparel and consumer goods.

Frequently Asked Questions

What is a good net profit margin for Amazon FBA?

Healthy private-label brands typically target between 15% and 25% net profit margin after all Amazon fees and advertising spend.

How does FBA calculate pick and pack fees?

Amazon determines FBA fulfillment fees based on shipping weight and dimensional package tiers (small standard, large standard, oversize).

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