An Amazon FBA seller breaks down a $425,000 revenue month to show actual profit: $93,000 after paying $95,000 in ads, $125,000 in Amazon fees, $20,000 in refunds, and other costs. Most sellers only show revenue screenshots, not the full expense picture.
All right, so I am a high 7-figure Amazon FBA seller, and I'm gonna go over every single expense because I'm so tired of people going ahead and showing screenshots and not actually showing you the profit of what an Amazon seller actually makes. So keep in mind, I have my own private label business. That means I manufacture these products in China, get them shipped into Amazon US, and this is my profit. And last month I did just over $425,000 in revenue. So now comes the fun portion of expensing everything that Amazon charges me. Number 1, advertising. I spent over $95,000 just on Amazon PPC alone. After that, I had promos. So I do 5% coupon codes on my actual products. And based on that, I spent over $10,000 on just promo itself. Then we have refunds because obviously people return our items. And that was just shy of $20,000 worth of refunds. Refunds. Some of these refunds, um, the inventory goes back to being able to be sold again, but most of the time I have to just throw these items away. After that, we have Amazon fees, and Amazon fees are broken down by a lot of different things— the 15%, the storage cost, the shipping to the customer— and that accounted for $125,000 in a single month, which again, it is crazy. And after that, my actual profit is right around $93,000. But you can see from $427,000 in a single month, there is a lot of fees associated when it comes to Amazon.
