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Ecommerce Profit Calculator
Calculate your true net profit per order for any ecommerce product by factoring in product cost, shipping, platform fees, payment processing fees, advertising cost per order, and return rate. Find your actual profit margin after all ecommerce-specific costs.
E-commerce profitability is more complex than product cost vs selling price. Seller fees (Amazon: 8-15%, Shopify: 2.9%+0.30), shipping, payment processing, advertising cost per acquisition, and return costs dramatically reduce apparent margins. This calculator reveals your true net profit per order.
Formula
Net Profit = Revenue - COGS - Shipping - Platform Fee - Payment Fee - Ad Spend per Order - Return Cost | Net Margin = Net Profit / Revenue × 100
E-commerce Cost Structure
Successful e-commerce requires understanding all cost layers between product cost and net profit. Many online sellers overestimate profitability by ignoring platform fees, advertising costs, and return rates — leading to pricing decisions that look profitable but are actually losing money.
Cost Component
Typical Range
Notes
Amazon FBA product cost
35-50%
Includes COGS + FBA fees + shipping
Amazon Seller fees
8-15%
Category-dependent referral fee
FBA fulfillment fee
$3-7 per unit
Weight/dimension dependent
Shopify + Stripe
2.9% + $0.30 per order
Standard rates
Facebook/Google Ads CAC
$10-50+ per order
Highly variable by niche
Return rate
5-30%
Industry and product dependent
Net margin (typical FBA)
10-25%
After all costs
Net margin (D2C Shopify)
15-35%
Higher without marketplace fee
Amazon vs Shopify Profitability
Amazon FBA: higher fees (15% referral + FBA fulfillment), but built-in traffic means lower advertising costs. Margins typically 10-25%. Shopify D2C: lower fees (2.9% + $0.30), but you pay all traffic costs. Without paid ads, D2C margins can reach 40%+. With paid ads, similar to Amazon. Multichannel (both) increases revenue but complicates logistics and pricing.
Frequently Asked Questions
Net Profit = Selling Price - Product Cost - Shipping - Platform/Marketplace Fee - Payment Processing Fee - Ad Spend per Order - Return Cost Allocation. Example: $50 product sold for $50 price: minus $15 COGS, $5 shipping, $5 Amazon fee (10%), $1.50 payment, $8 ad spend = $15.50 net profit = 31% margin.
Amazon FBA fees: Referral fee: 8-15% of selling price (depends on category). FBA fulfillment fee: $3-7+ per unit (size and weight based). Storage fee: $0.87/cubic foot/month (Jan-Sep), $2.40 (Oct-Dec). Total fees often represent 30-40% of selling price. Calculate before sourcing products — many new sellers discover they are unprofitable after launch.
Net profit margin targets: 10-15% is minimum viable for most ecommerce. 20-30% is healthy. Above 30% is excellent. Amazon FBA: realistic target 15-25% after all fees. Shopify D2C with ads: 15-25%. D2C with strong organic/email: 30-50%. Private label on Amazon often achieves 20-30% if sourced well.
Returns destroy margins. If 10% of orders are returned: cost = return shipping ($5-15) + restocking fee + potential product damage. A product with 25% margin and 15% return rate might have its effective margin cut in half after accounting for returns and restocking. Categories with high return rates: clothing (20-30%), electronics (10-15%), shoes (20-25%).
ROAS (Return on Ad Spend) = Revenue / Ad Spend. Break-even ROAS = 1 / Net Margin. If your net margin (before ads) is 25%: break-even ROAS = 1/0.25 = 4.0. You need $4 in revenue for every $1 in ad spend to break even. Target ROAS for profitability: 5-6× for most ecommerce. Low margins (15%) require 6-7× ROAS just to cover ad costs.
Shopify Payments rates (US, 2024): Basic Shopify: 2.9% + $0.30 per transaction. Shopify plan: 2.6% + $0.30. Advanced: 2.4% + $0.30. If using external payment processor: additional 0.5-2% transaction fee applies. For $50 average order on Basic: fee = $50 × 0.029 + $0.30 = $1.75. Annual processing cost at 1,000 orders/month: $21,000.