Free e-commerce tool
E-Commerce Product Profitability Calculator — True Margins After All Fees
Most online sellers know their revenue. Far fewer know their true profit per product — after marketplace referral fees, FBA or fulfilment costs, shipping, returns, advertising and VAT are deducted. This calculator strips away every layer of cost to show you exactly what lands in your pocket from each sale, on whichever platform you sell on.
How to use: Enter your selling price, product cost, and the fees for your marketplace. The calculator supports Amazon, Shopify, eBay, Etsy and others. See your true margin per unit after every fee is deducted.
Understanding your results
The calculator deducts all variable costs from your selling price to show your true profit per unit. For many e-commerce sellers, the gap between perceived profit and actual profit is alarming. A product with a 50% markup might only deliver a 10–15% net margin after all marketplace fees, fulfilment costs and returns are stripped away. If you sell on multiple platforms, the same product can have very different profitability on each one — which is why channel-level analysis matters.
Since January 2024, HMRC has received gross sales data directly from digital platforms. If your accountant records only net bank deposits as revenue, your books will not match what HMRC already knows — which can trigger enquiries. Recording gross revenue with full fee breakdowns is now essential for compliance, not just best practice.
Frequently asked questions
What fees does Amazon charge sellers?
Amazon charges a referral fee (typically 8–15% depending on category), FBA fees (pick, pack and ship — based on size and weight), monthly storage fees, and optional advertising costs. There may also be returns processing fees and long-term storage surcharges. Together, these can consume 30–45% of the selling price before you deduct your product cost.
What is a healthy profit margin for e-commerce?
After all costs including marketplace fees, a net margin of 15–25% is considered good for most e-commerce businesses. Below 10% is fragile — one cost increase or pricing change could make the product unprofitable. Above 30% is excellent but rare unless you sell proprietary or high-value products.
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