Amazon FBA Sellers: Calculating True Profit on Chinese Imports

New private-label sellers often compare the Alibaba quote to the Amazon selling price and see a huge spread. The spread disappears once you layer in freight, tariffs, FBA fees, referral fees, and PPC. A product that “looks obvious” can be break-even or worse after the real costs land.

• Landed unit cost — product + freight + insurance + duty + tariffs + fees, per unit (see our landed cost guide).
• Inbound shipping to Amazon — sending cartons from your port-side receiver to an FBA fulfillment center (often via partnered carrier or prep center).
• FBA fulfillment fee — per-unit pick, pack, and ship, driven by size and weight. Oversized or heavy units quietly cost far more.
• Referral fee — a percentage of the sale price, set by category.
• PPC / advertising — frequently the largest variable cost; model it as a percentage of revenue, not an afterthought.
• Returns — FBA return processing plus the lost merchandise.

Unit weight and dimensions drive both freight and FBA fees, so a slightly smaller or lighter design can move a product from loss to profit. And tariffs are not optional — a China-origin product can owe base duty plus Section 301 and other additional tariffs, which directly shrink margin versus a domestic or Vietnam-sourced alternative.

Our Amazon FBA China Profit Calculator takes the landed cost (reusing the same import math), adds inbound shipping, FBA and referral fees, and an ad-spend assumption, then shows your net profit and margin per unit and per month. Run it at your target price and at a pessimistic price — if both work, the product is worth a purchase order.

As always, the tariff inputs are estimates; confirm current rates on the official USITC HTS before committing budget.