How the profit is worked out
Five steps, each one a line in the result:
- The VAT inside the price
- A listing price on amazon.sa includes 15% VAT, and it is not yours. Of a 115 SAR price, 15 SAR is VAT and 100 SAR is the sale. It comes off first, because a profit worked out from the whole price is higher than the real one.
- Referral fee
- A share Amazon takes of the selling price, VAT included, which varies by category. Enter it as Amazon gives it for your product.
- FBA and storage fees
- The FBA fee is an amount per unit set by size and weight, not by price. Storage is each unit's share of the monthly fees until it sells.
- VAT on Amazon's fees
- Amazon invoices its fees with 15% VAT. If you are VAT-registered you reclaim it; if not, it is a cost on top of the fees, which is why we ask.
- Break-even price
- The lowest price at which you do not lose money. The referral fee rises with the price, so break-even is not the sum of your costs but the price that covers them after Amazon takes its share of it.
Where to get your real fees
Amazon's fees vary by category, size and weight, and they change. So this calculator puts in no number of its own, and works from the one Amazon gives you for your product:
The Revenue Calculator in Seller Central
Look up your product by ASIN, or a similar one, and Amazon shows its referral and FBA fees.
The Fee Preview report
In Seller Central's reports: the estimated FBA fees for each product in your inventory.
The settlement report
After the sale, the final word: every fee Amazon took from every order. It is what Sellet reads when you connect your account.
A worked example
With made-up numbers for illustration, not Amazon's fees: a product sold at 115 SAR, costing 35, with a 10% referral fee, a 12 FBA fee, 4 to ship to the warehouse and 0.5 in storage, for a seller who is not VAT-registered.
Net profit per unit
33.40 ر.س
Profit margin
33.4%
Return on cost
95.4%
- VAT inside the price (not yours)
- -15.00 ر.س
- Selling price without VAT
- 100.00 ر.س
- Referral fee
- -11.50 ر.س
- FBA fee
- -12.00 ر.س
- Storage fee
- -0.50 ر.س
- VAT on Amazon's fees
- -3.60 ر.س
- Product, shipping and other costs
- -39.00 ر.س
And do your ads pay?
The "profit margin" in the result, with no ad cost in it, is your product's break-even ACOS: the highest share of sales you can spend on ads without losing money. Put it in the ACOS calculator beside your campaign's figures.
Common questions
Does the calculator know Amazon's fees for my product?+
No, on purpose. Referral fees vary by category and FBA fees by size and weight, and Amazon changes them. A number we wrote in could be out of date or not about your product. Take your fees from the Revenue Calculator in Seller Central, and this calculator works out the rest.
Why is VAT taken out of the selling price?+
Because a listing price on amazon.sa includes 15% VAT, and it is not your income. Of a 115 SAR product, 15 SAR is VAT. Working out profit from the whole price shows a profit higher than the real one.
Do I pay VAT on Amazon's fees?+
Amazon invoices its fees with 15% VAT. If you are VAT-registered you reclaim it in your return; if not, it is a cost on top of the fees.
When do I have to register for VAT?+
Registration is mandatory once your annual revenue exceeds 375,000 SAR or is expected to, according to the Zakat, Tax and Customs Authority's simplified guide.
Does it work for Amazon UAE or Egypt?+
Not yet. The VAT on Amazon's fees there depends on where the seller is established, we have not checked it yet, and we do not calculate with a tax we have not checked.
This is an estimate from your numbers. Sellet measures it.
Connect your Amazon account and Sellet reads every fee from Amazon's settlements for each order, along with returns and ads, so you see your actual profit, not the expected one.
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