Profit Per Sale When Selling On Amazon

Now I’m back in Chiang Mai it seems that there’s been a huge swing. A lot of the people I met at the Drop Ship Lifestyle event are now looking at selling products on Amazon as their business model of choice and I’ve been fielding a lot of questions. The most common question is by far:

How much profit are you making per sale?

so I thought I’d answer that here, once and for all! Here are the transaction details for one of our sales, from Amazon.

Profit Per Sale When Selling On Amazon 1

The cost of this particular product for us to buy is $5.80, including shipping to Amazon, and we are selling it at $24.99. Here is the breakdown:

  • $24.99 Product Charge to customer
  • -$5.80 Product cost
  • -$1.00 FBA Order Handling Fee
  • -$1.02 FBA Pick & Pack Fee
  • -$0.55 FBA Weight Handling Fee
  • -$3.75 Referral Fee on Item Price

Total: $12.87 profit per sale

So as you can see, after the initial cost of the product and the various Amazon fees, we are left with $12.87 profit, which is roughly twice the cost of our product and half as much as we are selling it for.

Amazon themselves have a handy shipping calculator you can use to predict your own profits.