Amazon Profit Calculation | Best Guide-Xiongda

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When you need to do Amazon selection, a very important point is Amazon profit calculation, but there are still many sellers who are not very good at it.In this article will share with you what the costs of doing Amazon are included, and something about Amazon profit calculation.

TIPS for sellers:

The lower the profit margin is, the more sellers in the market are fighting a price war.

Unless you do relatively high quality products, otherwise you can only fall into the endless price war inside, when selecting products, if the profit margin does not meet our requirements do not consider.

Amazon cost components

Before talking about profit accounting, you need to popularize a point of Amazon distribution model.Amazon profit calculation
Amazon has FBA and FBM two delivery modes:


Amazon FBA that is, Amazon warehouse delivery, refers to Amazon sellers will be their own product goods, advance stocking to the Amazon overseas warehouse, the buyer placed an order Amazon is responsible for the direct delivery of goods in the Amazon warehouse to the customer.

Amazon profit calculation

Amazon profit calculation


FBM means self-shipping, which means that after a customer places an order, the seller sends the goods directly to the customer through international logistics.

So the accounting profit of these two kinds of Amazon logistics methods are also different.

How to do Amazon profit calculation?

FBA cost structure:

Product purchase cost (gift) (packaging cost) (quality inspection fee), logistics cost (supplier warehouse – port logistics cost) (port of origin – port of destination logistics cost) (port of destination – destination warehouse logistics cost);

Amazon commission (15% of sales), co-location fee (0.3 USD 2.1 RMB)

The giveaways, packaging costs, quality inspection costs in this can be added if available, and ignored if not.

Product purchase cost

This product purchase cost is our final purchase price after tax, and this purchase cost is subject to change.

After we have certain sales volume, we can negotiate with the factory for a lower purchase price, thus reducing our costs.

Here we recommend a pricing idea: start with a 15% profit margin.

We use high quality products with the mid-range market price range, with a relatively low profit margin to occupy the market, after the sales volume to negotiate a lower purchase price with the factory.

Amazon profit calculation

Amazon profit calculation

Attention to find FBA freight forwarder

It is important to note that when we look for FBA freight forwarder, we must ask the standard of shipping requirements in advance, the freight forwarder is not the same standard has differences.

For example, parcel weight requirements:

1, single solid weight of 12KG or more, not to 12KG by 12KG. Single piece of solid weight more than equal to 22.5KG plus 170 yuan / piece

2、A single parcel with any side longer than 120CM will be charged 120RMB/piece, the second side longer than 75CM will also be charged 120RMB/piece, and the single side longer than 180CM will not be accepted.

3、Single parcel length+(width+height)*2, if it exceeds 266CM, we will charge 120RMB/piece for extra length, if it exceeds 330CM, we will not accept it.

4、Single parcel is heavier than 40KG, do not accept

5、Please contact us for more information

Amazon profit calculation

Amazon profit calculation

So we must ask several important questions before shipping:

1. whether my goods are sensitive goods?

2. Are there additional costs? (tariff)

3. how about the recent timeliness

4. price

5. what are the terms of payment if the shipment is lost.

You can visit [Sellercentral] for more useful knowledge.

If you want to know more about Amazon shipping, please consult Amazon freight forwarder.
Xiongda will help you in all shipping from China to  USA Amazon FBA.
For any questions about FBA, contact us now

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