Amazon Profit Margin Calculator
Gross against net, and where the gap goes.
Amazon revises fee schedules at least annually and adds new surcharges more often. These defaults are a starting point — the figures in your own fee preview are the ones that describe your ASINs.
Net margin
32.3%
76% gross before fees and advertising
The gap between 76% gross and 32.3% net is 43.7% of revenue, all of it going to Amazon and advertising. Sellers who plan against gross margin consistently overestimate what the channel returns.
How the Amazon Profit Margin Calculator works
The gap between gross margin and net margin on Amazon is unusually wide, and it all goes to fees and advertising. Sellers who plan against gross consistently overestimate what the channel returns, then wonder where the money went.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is a good margin on Amazon?
15% to 25% net after all fees and advertising is a common target for private label. Anything below 10% leaves no room for a fee increase, a competitor price war or a bad quarter.
Why is my net so much lower than my gross?
Because referral and fulfilment fees together take roughly a third of the price, and advertising commonly takes another tenth. Neither appears in a gross margin calculation.
Should advertising count against margin?
On Amazon, yes. It is a cost of making the sale, not brand-building — most of it is bottom-of-funnel spend on people already searching for the product.
How do I improve it?
In order of usual impact: raise price, cut the size tier through packaging, improve conversion so advertising works harder, and negotiate unit cost. Fee reduction is rarely available; the others always are.