Amazon FBA Unit Economics: Tracking Real Bottom-Line Cash Flow
Sustainable e-commerce operations optimize for net retained profit per unit after FBA pick & pack, landed freight, customer return allowances, and PPC advertising drag (TACoS).
1. Foundational Unit Economics Formulas
- Landed COGS:
Supplier Unit Cost + Freight & Customs to FBA Warehouse - Amazon Fees:
(Selling Price × Referral Rate %) + FBA Fulfillment Fee + Monthly Storage - Net Profit per Unit:
Selling Price − Landed COGS − Amazon Fees − PPC Spend − Return Drag - Net Profit Margin (%):
Net Profit per Unit / Selling Price × 100 - Return on Investment (%):
Net Profit per Unit / Landed COGS × 100
2. Strategic Levers to Expand Margins
Boost profitability by optimizing packaging dimensions to drop into lower FBA size tiers, consolidating ocean freight shipments, and improving organic keyword rank to lower TACoS.