Hi all,
I’m trying to accurately calculate my final profit for FBM orders, but I’m getting conflicting results compared to online calculators and Amazon’s own revenue calculator.
Here’s an example of how I work it out (all figures include VAT):
Sale Price: £5.49
Postage Cost: £1.55
Cost of Item: £1.50
Amazon Fee (from Amazon’s own report): £0.53
Based on this, my calculation is:
Profit = £5.49 - £1.55 - £1.50 - £0.53 = £1.91
However, most calculators (and the Amazon revenue calculator) show the fees as around £1.01, which would make the profit about £1.43 instead.
Why is there such a difference? Am I missing something in the fee structure (e.g., VAT on fees, referral fees, closing fees, or other deductions)?
Any advice or clarification would be much appreciated!