Calculate true profit margins for online retail
For educational purposes. Actual margins vary by platform and business model.
Tools that pair well with this calculator — selected by our team.
| Tool | Best For | Network |
|---|---|---|
| Jungle Scout | 15–20% recurring | Direct |
| Helium 10 | 30% recurring through Awin | Awin |
We may earn a commission if you click above. Calculator is free to use.
Gross margins of 50-70% are typical for e-commerce. Net margins of 10-20% are healthy. Margins vary widely by category — jewelry and digital products can hit 70%+ net, while consumer electronics often struggle to reach 5%.
Amazon charges 6-15% referral fee on each sale, depending on category. Most categories are 8-15%. FBA adds fulfillment fees ($3-6+ per unit). Always factor these into your pricing before listing.
Include ALL costs: product cost, shipping, Amazon/Platform fees, advertising, returns, storage, payment processing, and your time. The most overlooked cost is return rate — budget 5-15% of revenue for returns.
Sell-through rate = units sold / units received. Above 0.5 (50%) per month is decent. Above 0.75 is excellent. Low sell-through means you're carrying too much inventory or pricing is wrong.