Hello guys,
hope everyone is doing well. I have a favor to ask. I want to start Amazon wholesale in the US as a beginner. I’ve done my best with product analysis, but I’m still not clear on Amazon’s profit margins and all the service fees.
For example, if I have a product that costs $12 and sells for $34 on Amazon, how much will Amazon charge me?
The product size is small standard with a weight of 1.2 pounds.
To estimate your profit margin, you need to account for Amazon’s referral fee, fulfillment fee, and any additional costs like storage or inbound shipping. For a product selling at 34 dollars, Amazon typically charges a 15 percent referral fee, which would be 5 dollars and 10 cents. Since your product falls under the small standard-size category and weighs 1.2 pounds, the FBA fulfillment fee would be approximately 4 dollars and 52 cents based on current Amazon FBA rates. That means Amazon’s total fee deduction would be around 9 dollars and 62 cents. If your cost of goods is 12 dollars, your estimated profit before other expenses like shipping, PPC, or software tools would be 12 dollars and 38 cents per unit. However, you should also factor in inbound shipping costs, prep fees, and potential storage fees to get a more accurate net profit calculation. You can use Amazon’s FBA revenue calculator for precise numbers based on updated rates.
Referall fee is usually 15% (might be different for certain categories, you have to check it on amazon). FBA fees depends on the product dimensions and weight.
Amazon takes 15% referral fee + around $4-$5 FBA fee for your product. Your profit should be around $14-$16. Use the FBA calculator for exact fees.
I started selling a white-label olive oil that my family produces. I shipped 15 bottles, each individually wrapped in inflatable shippers that I inflated myself. I packed all 15 bottles in one box, with each bottle weighing about 2.5 lbs, totaling approximately 32 lbs. I was charged for shipping to Amazon via UPS but don’t remember the exact cost. I listed each bottle on Amazon for $39.99 and had a UPC exemption since my bottles didn’t have a UPC code. Amazon charged me about $13 per bottle, leaving me with a net profit of around $26–$27 per bottle. I believe $6 was for Amazon’s fees and another $6 for shipping (+/-). I need to figure out how to increase my profit per bottle. I’m pretty sure that the less work and material Amazon has to handle, the more you profit—they took about 32% of the $39.99.
What about the other fees? And will Amazon actually pay me back?
That’s all? I mean there is inventory cost product leveling + shipping cost are these all included in your calculations?
