How do I calculate Prep Center costs?

Add the 'per unit' fee charged by your prep center (usually $0.50 - $1.50) into your cost of goods. Our calculator includes a specific field for 'Prep Center Fee' to make this easy.

📦 Wholesale Profit Calculator

Q: What is a good ROI for Amazon Wholesale?

Most wholesale sellers aim for a minimum ROI of 15-20%. Because the risk is lower than Private Label (since the brand is already established), sellers can accept lower margins in exchange for faster turnover.

Calculate Net Margin and ROI specifically for Branded Products.

1. Product & Sourcing

Selling Price ($)

Wholesale Cost ($)

2. Logistics & Prep

Inbound Shipping ($/unit) Cost to ship from Supplier to Prep/Amazon

Prep Center Fee ($)

Labeling/Polybag

3. Amazon Fees

FBA Fee ($)

Referral Fee (%)

📉 Stress Test: Price Drop Simulator

Simulate Price Drop: 0%

NET PROFIT

$0.00

ROI %

Cost Breakdown

🟦 Product Cost ⬜ Fees & Prep 🟩 Profit

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Wholesale Guide

Why You Should Ditch Your Amazon Wholesale Profit Margin Calculator Spreadsheet

Many new sellers start with a basic Excel sheet to calculate profits. While searching for an "amazon wholesale profit margin calculator spreadsheet" is a good start, static spreadsheets have a fatal flaw: they don't account for Prep Center fees or Competitor Price Tanking.

Our dynamic Amazon Wholesale Calculator above solves this by allowing you to stress-test your margins before you buy inventory.

Wholesale Profit vs. Private Label Profit

In Private Label, you control the brand. In Wholesale, you share the Buy Box. This means your profit calculation must focus heavily on ROI (Return on Investment) rather than just Net Margin.

The Golden Wholesale Formula:

ROI = (Selling Price - FBA Fees - Referral Fee - Prep Cost - Shipping - Unit Cost) / (Unit Cost + Prep + Shipping)

Hidden Costs in Wholesale

If you are just using a simple spreadsheet, you are likely missing these profit-killers:

Prep Center Fees: Most wholesalers use a 3rd party prep center to label and bundle products. This usually costs $0.50 - $1.00 per unit.
Inbound Shipping: Shipping from the brand to your prep center, and then to Amazon FBA.
Price Tanking: What happens if other sellers drop the price by 10%? Use the "Stress Test" slider in our tool to see if you are still profitable.

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Try SmartScout for Free

The #1 Tool for Amazon Wholesale Sellers

FAQ

Q: What is a good ROI for Amazon Wholesale?

A:Most wholesale experts aim for a minimum of 20-30% ROI (after all fees). Since wholesale is a volume game with lower risk than Private Label, you can accept lower margins if the inventory turns over monthly.

Q: How do I calculate profit for a bundle (e.g., Pack of 2)?

A: Use the "Units in Bundle" field in our calculator. Enter your single unit wholesale cost against the selling price of the 2-pack.

Q: Should I use FBA or FBM for wholesale?

A: FBA is preferred for winning the Buy Box, which is critical when sharing a listing with other sellers. However, for items under $10, FBA fees might be too high relative to the price, making FBM a viable backup.