Landed cost is the total cost of getting one unit from your supplier to the Amazon fulfillment center, including the product itself, international shipping, customs and duties, inspection, prep, packaging, and any miscellaneous fees. It's the true cost basis you should use when evaluating a product, not the supplier's quote.

Why should sourcing costs be included?

Because they're real money you spend per unit. A $5 supplier quote often becomes $9–$11 landed once freight, duties, and prep are added. If you price off the quote alone, you'll overestimate your margin and ROI — and may order inventory that loses money.

What ROI should Amazon sellers target?

Many experienced FBA sellers won't source a product below 50% ROI, and a lot target 75–100% on new launches to leave room for PPC, returns, and price competition. Anything below about 20% ROI is usually too thin once Amazon's storage, ad, and return costs hit.

Should I include PPC advertising in landed cost?

Not in landed cost itself — landed cost is what you spend to get the unit to Amazon. PPC is a separate per-unit cost most sellers track in the Miscellaneous field, especially during a launch when ad spend per unit is highest.

How do I estimate per-unit shipping if I haven't ordered yet?

Get a quote from a freight forwarder for your expected order quantity, then divide the total freight cost by the number of units. For small first orders, air freight can run $2–$5 per unit; sea freight at full container loads can drop below $0.50 per unit.

Amazon FBA Product Sourcing Calculator

Many new Amazon sellers compare a supplier quote to Amazon's selling price and think they've found a winner — only to realize, once the unit lands in a fulfillment center, that shipping, customs, prep, and packaging have wiped out the margin. This calculator estimates your true landed cost (everything it takes to get one unit from the supplier to an Amazon customer) and combines it with Amazon's fees so you can see real profit and ROI before you place the order.

Last Updated: June 2026

Reviewed for current Amazon FBA referral and fulfillment fees.

Free calculator
Instant estimate
No signup needed
Beginner friendly

Supplier product cost ($)

International shipping cost ($)

Per-unit air or sea freight from supplier to your destination.

Customs / duties ($)

Inspection cost ($)

Third-party QC fee divided across the order quantity.

Prep center cost ($)

Packaging cost ($)

Amazon referral fee ($)

Usually 15% of selling price; varies by category.

FBA fulfillment fee ($)

Per-unit pick, pack & ship fee based on size and weight.

Expected selling price ($)

Advanced (optional)

Miscellaneous costs ($)

Samples amortized per unit, photography, freight surcharges, etc.

Landed cost per unit

$10.00

Total Amazon fees

$9.48

Net profit per sale

$10.51

ROI

105.1%

Excellent Opportunity

Profit margin

35.05%

High Profit Potential

Selling price

$29.99

Real Profit Snapshot

After platform fees

Estimated sales per month

Estimated monthly profit

$525.50

Verdict: Healthy margin — this product has strong room to scale with ads or volume.

Excellent OpportunityYour estimated landed cost is $10.00 per unit. At a selling price of $29.99, this product generates approximately $10.51 profit and a 105.1% ROI.

Recommendation

Excellent sourcing opportunity. Strong margin of safety on returns, ads, and fee changes.

All calculations are estimates based on average platform fees. Real profits may vary depending on category, ads, and shipping.

Free worksheet for your next step

Use this worksheet to plan FBA fees, ads, and product profitability.

WorksheetAmazon FBA
Amazon FBA Product Research Worksheet
A guided worksheet for validating Amazon product ideas — demand, competition, margins, and sourcing checks.
Open the worksheet →
WorksheetAmazon FBA
Amazon FBA Profit Worksheet
A worksheet for estimating product profit after inventory and FBA costs.
Open the worksheet →

How to use this calculator

Enter your numbers in each field above — the calculator updates instantly as you type, so there's nothing to submit.
Use your real figures when you have them, or sensible estimates while you're planning. If a field doesn't apply, leave it at zero.
Compare the results, then change one input at a time to see how each lever (price, cost, fees, volume) moves the outcome.

Formula

Landed cost = Product + Shipping + Customs + Inspection + Prep + Packaging + Misc · Total Amazon fees = Referral fee + FBA fee · Net profit = Selling price − Landed cost − Amazon fees · Profit margin (%) = (Net profit ÷ Selling price) × 100 · ROI (%) = (Net profit ÷ Landed cost) × 100

Worked example

Supplier cost $6, international shipping $2, customs $0.50, inspection $0.25, prep $0.75, packaging $0.50. Referral fee $4.50, FBA fee $4.98. Selling price $29.99.

Landed cost = 6 + 2 + 0.50 + 0.25 + 0.75 + 0.50 = $10.00
Total Amazon fees = 4.50 + 4.98 = $9.48
Net profit = 29.99 − 10.00 − 9.48 = $10.51
Profit margin = (10.51 ÷ 29.99) × 100 ≈ 35.0%
ROI = (10.51 ÷ 10.00) × 100 ≈ 105.1%

Answer: $10.00 landed · $10.51 profit · 35.0% margin · 105.1% ROI

How it works

Landed cost is the most important number in product research. The supplier quote is just one line — once you add freight, duties, QC inspection, prep, and packaging, your real per-unit cost is often 50–100% higher than the quote. Comparing that landed cost against Amazon's referral and FBA fees is what tells you whether a product can actually make money at the price you plan to charge.

ROI is the metric most experienced sellers use here, because it tells you how hard the cash you tie up in inventory is working. The same $10,000 can buy a lot of $5 units at 80% ROI, or a few $40 units at 20% ROI — and the first option compounds faster.

How to interpret your results

Dollar values are shown per sale, per order, or per item unless a result is explicitly labelled monthly, weekly, or daily.
Percentages (margin, ROI, conversion rate) are easier to compare across products and price points than raw dollars — use them when you benchmark.
A positive result means you're ahead after the costs and fees you entered. A negative result means the current numbers don't work — change a lever (raise price, cut a cost, lower ad spend) and recalculate.
Treat the output as a planning estimate, not a guarantee. Fees, taxes, and conversion rates shift over time — re-run the numbers whenever a key input changes.

Common mistakes

Comparing supplier quotes to Amazon's selling price without adding freight, customs, and prep.
Forgetting per-unit inspection and sample costs when ordering small first batches.
Treating air vs sea freight the same — the per-unit shipping difference can make or break ROI.
Skipping customs duties because the supplier didn't mention them.
Ignoring packaging and inserts, which often add $0.30–$1.00 per unit.

Go deeper with plain-English guides on the same topic.

FAQ

What is landed cost?: Landed cost is the total cost of getting one unit from your supplier to the Amazon fulfillment center, including the product itself, international shipping, customs and duties, inspection, prep, packaging, and any miscellaneous fees. It's the true cost basis you should use when evaluating a product, not the supplier's quote.
Why should sourcing costs be included?: Because they're real money you spend per unit. A $5 supplier quote often becomes $9–$11 landed once freight, duties, and prep are added. If you price off the quote alone, you'll overestimate your margin and ROI — and may order inventory that loses money.
What ROI should Amazon sellers target?: Many experienced FBA sellers won't source a product below 50% ROI, and a lot target 75–100% on new launches to leave room for PPC, returns, and price competition. Anything below about 20% ROI is usually too thin once Amazon's storage, ad, and return costs hit.
Should I include PPC advertising in landed cost?: Not in landed cost itself — landed cost is what you spend to get the unit to Amazon. PPC is a separate per-unit cost most sellers track in the Miscellaneous field, especially during a launch when ad spend per unit is highest.
How do I estimate per-unit shipping if I haven't ordered yet?: Get a quote from a freight forwarder for your expected order quantity, then divide the total freight cost by the number of units. For small first orders, air freight can run $2–$5 per unit; sea freight at full container loads can drop below $0.50 per unit.

Why trust this calculator?

This tool uses standard mathematical formulas and commonly accepted calculation methods, shown openly in the Formula section above so you can verify the math yourself. Results are estimates based on the information you enter and do not account for every individual circumstance. For important financial, tax, legal, medical, or business decisions, please double-check with a qualified professional before acting on the numbers.

Keep going

One calculator rarely tells the full story. Pair this one with a related tool below to pressure-test your numbers from a different angle, or browse Work & Money Calculators for more in the same category.

What to calculate next

You may also find these tools helpful.

How To Find Profitable Amazon FBA Products
A complete Amazon FBA product research system — demand, competition, pricing, margins, scoring, and validation before you buy inventory.
Read guide →
Amazon FBA Cost Guide
Every Amazon FBA fee in 2026 — referral, fulfillment, storage, fuel surcharge — with worked profit examples at $10, $25, $50, and $100 price points.
Read guide →
Amazon FBA Inventory Management Guide
How to avoid stockouts and overstock on Amazon FBA — forecasting, lead times, reorder points, safety stock, and storage-fee strategy.
Read guide →

Amazon FBA Break-Even Calculator
Minimum Amazon selling price needed to cover product cost and FBA fees.
Try calculator →
Amazon FBA Profit Calculator
True profit per unit after Amazon referral, FBA, and storage fees.
Try calculator →
Amazon FBA ROI Calculator
Estimate ROI, profit margin, and profit per unit for any FBA product.
Try calculator →

Etsy vs Amazon Handmade
Marketplace fees and reach compared — which keeps more of your profit?
Compare →

KDP Book Launch: Spend More on Ads or Improve the Cover?
A self-published romance author has $600 left in launch budget. The book is ranking but not converting — should that money go to more Amazon Ads or to a professional cover redesign?
Read case study →

Amazon FBA Product Research Worksheet
A guided worksheet for validating Amazon product ideas — demand, competition, margins, and sourcing checks.
Open resource →
Amazon FBA Fee Cheat Sheet
A quick-reference guide to understanding common Amazon FBA fees and profit calculations.
Open resource →
Amazon FBA Fee Guide
A plain-English overview of the common costs Amazon FBA sellers pay.
Open resource →

Real Profit Snapshot

Free worksheet for your next step

Amazon FBA Product Research Worksheet

Amazon FBA Profit Worksheet

How to use this calculator

Formula

Worked example

How it works

How to interpret your results

Common mistakes

Related Guides

FAQ

Why trust this calculator?

Keep going

What to calculate next

Related Guides

Related Calculators

Compare Alternatives

Case Studies

Recommended Downloads