Understanding FBA Costs
FBA (Fulfillment by Amazon) handles storage, picking, packing, and shipping for you. However, it comes with multiple fees that significantly impact profitability.
FBA Fees Include:
1. Fulfillment Fee: Based on product size & weight ($2.50-$100+)
2. Referral Fee: 15% of sale price (varies by category, 8-45%)
3. Monthly Storage Fee: Per cubic foot ($0.87/cubic foot)
4. Long-Term Storage Fee: Items stored 365+ days ($6.90/cubic foot or $0.15/unit)
Total FBA Impact: Most products lose 25-40% of revenue to these fees combined.
FBA Cost Calculator 2025
Calculate all fees for your Amazon FBA product
Monthly at projected volume: $0.00
Real FBA Cost Examples
Example 1: Light Standard Product (PROFITABLE)
- Sale Price: $25.00
- Weight: 0.5 lbs (Small Standard)
- Fulfillment Fee: ~$2.50
- Referral Fee (15%): $3.75
- COGS: $8.00
Net Profit = $25 - $6.50 - $8 = $10.50/unit (42% margin) ✓ GOOD
Example 2: Heavy Standard Product (MARGINAL)
- Sale Price: $30.00
- Weight: 3 lbs (Standard)
- Fulfillment Fee: ~$6.04
- Referral Fee (15%): $4.50
- COGS: $12.00
Net Profit = $30 - $10.75 - $12 = $7.25/unit (24% margin) ⚠ RISKY
Example 3: Oversized Product (UNPROFITABLE)
- Sale Price: $50.00
- Weight: 15 lbs (Large Bulky)
- Fulfillment Fee: ~$18.00
- Referral Fee (15%): $7.50
- COGS: $20.00
Net Profit = $50 - $25.80 - $20 = $4.20/unit (8% margin) ✗ BARELY VIABLE
Critical FBA Cost Insights
- Weight kills profitability: Every extra pound can add $2-5 in fulfillment fees. Light products are 10x more profitable on FBA.
- Oversized = bankruptcy: Bulky items face 3-4x higher fulfillment fees. Only sell if margin is 40%+ gross.
- Storage fees compound: Slow-moving inventory costs $0.87-$6.90 per cubic foot per month. Kill dead SKUs immediately.
- FBA vs FBM tradeoff: FBA adds ~15-25% cost but drives 3-5x more sales for most categories. Model both before deciding.