Selling on Amazon FBA involves more costs than most new sellers realize. Between import tariffs, Amazon's fees, advertising, and overhead, the gap between your selling price and your actual profit can be surprisingly small. Here's every cost you need to account for.
| Cost | Typical Range | Notes |
|---|---|---|
| Product Cost (FOB) | 15-40% of sell price | Varies by product |
| Shipping to US | 3-8% of sell price | Sea freight vs. air |
| Import Tariffs | 25-60% of customs value | Biggest variable |
| Amazon Referral Fee | 8-15% of sell price | Category dependent |
| FBA Fulfillment Fee | $3-8 per unit | Size/weight based |
| Storage Fees | $0.56-2.40/cu ft/mo | Higher Oct-Dec |
| PPC Advertising | 10-25% of revenue | Category dependent |
| Returns/Refunds | 2-5% of revenue | Varies |
Import tariffs are often the second-largest cost after the product itself โ sometimes even larger. A $10 product from China with a 45% effective tariff rate adds $4.50 per unit in duties. At 1,000 units per month, that's $4,500 in monthly tariff costs that many sellers don't account for in their product research.
Tariffs are assessed on the customs value (product cost + shipping + insurance), not on the Amazon selling price. Multiple tariff layers stack:
๐ Full Cost Breakdown
Selling Price on Amazon: $24.99
Product Cost (FOB): $4.00 | Shipping: $1.00 | Customs Value: $5.00
Tariff (44% = 4% MFN + 25% S301 + 15% S122): $2.20
Amazon Referral (15%): $3.75 | FBA Fee: $3.50 | PPC (~15%): $3.75
Total Costs: $18.20 | Net Profit: $6.79 | Margin: 27.2%
Without tariffs, the margin would be 36%. The $2.20 per unit in duties reduces the margin by nearly 9 percentage points. At 500 units per month, that's $1,100 per month in tariff costs.
Tariffs: Source from non-China countries. Use our comparison calculator to see the difference. Optimize your HTS classification.
Amazon Fees: Reduce product dimensions and weight to lower FBA fees. Use subscribe-and-save to reduce referral rates in some categories.
PPC: Optimize keywords and bids using Helium 10's keyword tools. Target ACoS under 25%. Use exact match for proven keywords.
Product Cost: Negotiate with suppliers. Increase order quantities for better pricing. Consider multiple quotes.
Calculate Your Complete FBA Costs
FBA Profit Calculator โAmazon typically takes 30-40% of the selling price through referral fees (8-15%), FBA fulfillment fees ($3-8), and storage fees. This doesn't include tariffs or PPC costs.
No. Tariffs are paid separately to US Customs when goods enter the country. Amazon doesn't handle import duties for FBA sellers.
Budget 25-60% of your customs value (product cost + shipping) for tariffs on Chinese goods. For non-China goods, budget 15-33%.