Margin vs Markup, and Why the Difference Costs Money
A 50% markup is a 33% margin. Getting the two confused underprices products by a third, and the error…
Estimates Amazon referral, FBA fulfilment and storage fees per unit, then gives profit, margin, ROI and the break-even selling price.
The Amazon FBA Calculator estimates Amazon referral, FBA fulfilment and storage fees per unit, then gives profit, margin, ROI and the break-even selling price. It runs as plain JavaScript inside the page, which means there is no upload step, no queue and no size limit imposed by a server — the only limit is your own device.
| Referral fee | Usually 15%, minimum 30c |
|---|---|
| Electronics | 8% |
| Fulfilment | Stepped by size tier and weight, not a rate |
| Storage | Roughly triples October to December |
| Small standard | Under 16 oz and within 15 × 12 × 0.75 inches |
This tool uses profit = price − referral fee − FBA fulfilment fee − storage − advertising − unit cost − inbound shipping, where the referral fee is a percentage with a 30c minimum and fulfilment is a stepped charge by size tier and weight. Every intermediate value is shown on screen, so the result can be checked by hand.
Returns processing fees, removal orders, low-inventory and placement service fees, the 39.99 monthly professional plan, and the aged-inventory surcharge are all outside this model. For a marginal product any one of them can be the difference between profit and loss.
A 50% markup is a 33% margin. Getting the two confused underprices products by a third, and the error…
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