E-commerce Profit Margin Calculator
Your margin isn't (price − cost) ÷ price — advertising, fulfillment and referral fees eat most of it. Enter the full stack and see profit per unit, margin and ROI.
FAQ
What is a good profit margin for e-commerce?
After all costs, 15–25% net margin is healthy for Amazon/private-label; dropshipping margins are usually thinner (10–20% gross, before ad spend). Below 10% net, most sellers cannot survive ad cost inflation.
What is the difference between margin and markup?
Selling a $20 item bought at $10: markup is 100%, gross margin is 50%. Sellers confuse them and price dangerously low. This calculator reports margin (profit ÷ selling price).
How much does Amazon take?
Typical private-label costs: referral fee 8–15% by category (most common 15%), FBA pick-and-pack $3–6 per standard unit, inbound placement, storage, and 10–25% of price in PPC. Amazon often absorbs 35–50% of the selling price in total.
Does ROI per unit matter?
Yes — it is the metric that decides which product to fund. ROI = profit ÷ landed cost. A 30% margin on 1× ROI beats 50% margin on 0.3× ROI for cash-flow-constrained sellers.