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.

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%

Selling price

$29.99

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.

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.

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.

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