How to Calculate Profit on an Amazon Order

Start with the amount you earn on an order. Subtract product cost and attributable selling costs to estimate contribution margin. Include overhead and tax only when you have the necessary records and a defined allocation method.

A transparent example

Illustrative inputs: net sale revenue ₹1,000; product cost ₹400; marketplace fees ₹150; shipping cost ₹80; attributed advertising ₹50. Contribution margin = ₹1,000 − ₹400 − ₹150 − ₹80 − ₹50 = ₹320.

The ₹320 is not operating profit. This example excludes salaries, software, rent, tax, financing, and any later return or reimbursement. It also is not the amount deposited into a bank account.

When an order is returned

Update the original order with the refund, returned inventory value, and any non-recovered charges. A dashboard that leaves the initial sale unchanged can overstate margin. Keep a record of when a cost is estimated or missing.

Sources and scope

Reviewed 23 September 2026 for Amazon India. Check the current Amazon India fee guidance for the applicable referral, closing, shipping, and other charges. The example above uses invented inputs to demonstrate arithmetic and does not reproduce Amazon's fee schedule or provide tax advice.