Ecommerce Profit Margin Calculator

Referral/commission fees by platform: Amazon 8–17% (most categories 15%), Etsy 6.5% transaction + $0.20 listing fee, eBay 12.9–14.9%, Walmart Marketplace 6–20%, Shopify (via Shop Pay) 0.5–2% depending on plan. These percentages apply to the full selling price including shipping if the buyer pays it.

Industry benchmarks: general merchandise 20–30%, fashion/apparel 30–50%, electronics 10–20%, beauty/personal care 30–50%, handmade/craft (Etsy) 20–40%. Margins below 15% are risky on marketplaces once you account for returns, advertising, and storage fees not included in this calculator.

Platform fees come straight off the top line. A 15% Amazon referral fee on a $30 item = $4.50 in fees before you even account for product cost or shipping. If your product costs $10 and shipping is $5, total cost is $19.50, leaving only $10.50 profit — a 35% margin. Add advertising spend and it can drop to 15–20%.

Amazon FBA has two main fee types: (1) Referral fee — typically 15% of selling price. (2) FBA fulfillment fee — based on size/weight, often $3–5 for a standard item. For a $30 product: referral fee $4.50 + fulfillment $4.00 = $8.50 in Amazon fees. Add your product cost and inbound shipping to get total cost. Use this calculator with the referral % and add FBA fees to your shipping cost field.

This calculator covers direct transaction costs (product, shipping, platform fee). Advertising is a separate line that varies by product and strategy. A common benchmark: keep ad spend below 10–15% of revenue (ACOS for Amazon PPC), or your total margin collapses. Calculate margin here first, then subtract your expected ACOS/ad spend to find your net margin.

Step 1: Add product cost + shipping cost + (selling price × platform fee %). Step 2: Subtract from selling price to get profit. Step 3: Divide profit by selling price, multiply by 100 for margin %. Example: $45 sale − $15 product − $5 shipping − $6.75 Amazon fee (15%) = $18.25 profit ÷ $45 = 40.6% margin.