Amazon SKU Profitability Calculator
Rank the catalogue by return on capital.
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.
Better use of capital
SKU B
33% against 11.6% monthly
SKU A makes more money in absolute terms, but SKU B earns more per pound of capital — and capital, not shelf space, is what limits most sellers. Ranking the catalogue by return on capital rather than by revenue is what changes reorder decisions.
How the Amazon SKU Profitability Calculator works
Revenue ranks SKUs in the order that flatters them; return on capital ranks them in the order that should drive reorders. The biggest seller in a catalogue is frequently the worst use of money in it, and nothing in the standard reporting will tell you that.
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
How should I rank my SKUs?
By monthly profit divided by the capital each ties up. That single figure correctly compares a slow high-margin product against a fast low-margin one, which margin alone cannot do.
Why is the biggest seller often the worst?
Because high revenue with thin margin and slow turns can lock up enormous capital for a modest return. Meanwhile a small, fast, high-margin SKU quietly earns more per pound invested.
What capital should I count?
Stock on hand, in transit and on order, plus sales made but not yet paid out. Anything you cannot spend on something else because this SKU has it.
When should I cut a SKU?
When its return on capital is below your best alternative use of the same money and there is no credible path to improving it. Existing stock is a sunk cost and not a reason to reorder.