Why Your Amazon P&L Is Probably Wrong
Most sellers calculate profit as: Selling price − COGS − FBA fee. That's wrong. The real formula has 8 cost components you need to subtract.
The 8 Costs in True Amazon Profit
| Cost | Notes |
|---|---|
| COGS | What you paid for the unit |
| Referral fee | 8–20% of selling price (category-dependent) |
| FBA fulfillment fee | $3.06–$20+ based on size tier |
| FBA storage fee | Monthly per cubic foot |
| Inbound shipping | Freight to Amazon FC |
| PPC cost | Per-unit attribution from ad spend |
| Return rate | % of sales refunded |
| Amazon returns processing | Fee Amazon charges on refunded orders |
How to Use the niche.ltd P&L Dashboard
- Navigate to P&L Dashboard from the left sidebar
- Add your products by ASIN or manually
- Enter COGS and select your FBA size tier
- The calculator auto-applies 2025 fee tables for your category
- Adjust PPC cost per unit and return rate
- See your net profit, margin % and break-even price in real time
What is Break-Even Price?
Break-even is the minimum selling price where profit = $0. It's calculated as: (COGS + all fees) / (1 − referral rate). If your break-even is $24.80 and you're selling at $24.99, your margin is just $0.19/unit — you're one fee change away from losing money.
The Return Rate Problem
Amazon's average return rate is 5–8% for most categories. Clothing and electronics can hit 20–30%. Every return costs you:
- FBA fee (Amazon keeps it)
- Referral fee refund: Amazon charges you a $0–$5 "refund administration fee"
- The returned unit may arrive damaged and unsellable
Always model return rate in your P&L before launching a product.
Multi-SKU P&L
In niche.ltd, you can track unlimited SKUs (Starter: 150, Pro: 500, Business: 2,000) and see your total portfolio P&L broken down by marketplace, product line or date range.