E-commerce Profit Calculator

Amazon FBA: Selling Price $40, Product Cost $12, Shipping $5 Platform Fee (15%): $6.00 Total Cost: $23.00 Net Profit: $17.00 Profit Margin: 42.5%

E-commerce profitability refers to the financial gain a business makes from selling products online after all associated costs are deducted. Unlike simple revenue, true profitability considers every expense incurred per unit. This includes the product's cost of goods sold (COGS), shipping costs, marketing or advertising spend, and, critically, platform-specific fees.\n\nThese platform fees vary significantly: Amazon FBA charges referral fees, fulfillment fees, and storage fees; Etsy levies transaction fees, listing fees, and payment processing fees; while Shopify primarily charges payment processing fees with additional app costs. Failing to account for all these variables can lead to an overestimation of earnings and unsustainable business practices.\n\nUnderstanding the net profit per unit is essential for setting competitive prices, managing inventory effectively, and making informed decisions about which sales channels are most advantageous for specific products. It moves beyond gross margin to provide a clear picture of the actual money remaining after a sale.