How do I calculate contribution on an Amazon sale?
Subtract sourcing, selling fees, fulfillment and other variable expenses from net sales revenue.
Revenue alone cannot show what a sale contributes. Enter the actual fees and variable costs for your product and distinguish contribution from final business profit.
Take one real item and separate net revenue, sourcing, selling fees, fulfillment, shipping and ads. Contribution before fixed costs shows the room available for ads or discounts.
With €40 net revenue, €15 sourcing cost, €10 platform and fulfillment charges and €3 other variable costs, contribution is €12 before ads and fixed overhead.
Subtract sourcing, selling fees, fulfillment and other variable expenses from net sales revenue.
Depending on the offer, referral, fulfillment, storage and other applicable charges may arise. Enter your actual figures.
Fees, sourcing, returns or advertising may consume much of the contribution.
Account for all relevant costs and the minimum margin you need, then test the calculation with your actual fee basis.
Calculate contribution before ads; that gives the maximum affordable ad cost under the entered assumptions.
Review sourcing, product mix, applicable charges, returns and pricing.
Only when a verified data source is connected; these tools otherwise use your inputs.
Yes, enter them as cost items.
No.
Yes, when entered costs exceed the relevant revenue.
Yes.
Choose the tool that performs the specific task discussed on this page.