Side-by-side profit per order: Amazon FBA vs your own site.
Inputs (per unit)
Same product, both channels
Manufacturing cost
Amazon FBA
8-15% by category
Per-item pick/pack/ship
Amazon Sponsored Ads ACOS
DTC
Outbound to customer
Effective CPA
Profit per unit
Amazon FBA
—
DTC
—
Better channel
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Cost breakdown per unit
Line Item
Amazon
DTC
Diff
Volume scenarios
Units / Mo
Amazon Profit
DTC Profit
Both Channels
About this calculator
Amazon vs DTC is the perpetual question for ecommerce brands. Amazon brings volume and removes fulfillment headache; DTC brings margin and customer relationships. Most brands eventually run both, but operators rarely have a clean side-by-side per-unit profit comparison to inform mix decisions.
The fee structure is what makes Amazon margin-thinner. Referral fee (8-15% of sale price by category) plus FBA fulfillment ($3-8 per item) plus monthly storage ($0.20-0.40 per unit per month) adds up fast. On a $30 item with 12% referral and $5 FBA, that\'s $8.60 in pure platform cost — roughly 28.7% of revenue. DTC platform cost (Shopify subscription + Stripe processing) typically runs 3-5% of revenue.
The offset is acquisition cost. Amazon Sponsored Ads ACOS averages 15-25% for non-saturated categories. DTC CPA on Meta averages 25-35% of AOV for considered purchases. So Amazon costs more in platform fees but less in advertising. The math nets out differently for different products: low-AOV impulse items often win on Amazon (CAC efficiency dominates); high-AOV considered items often win on DTC (margin retention dominates).
Most successful multi-channel brands operate Amazon as a customer acquisition layer (entry-price products, broad reach) and DTC as a margin/LTV layer (premium products, repeat customers). The cross-sell from Amazon to DTC list is the ultimate prize but hard to engineer because Amazon blocks most direct customer relationships. Pair this with the Multi-Channel Profit Comparison and the Amazon FBA Fees calculator for fuller modeling.
Frequently asked questions
Why is my Amazon margin so much lower than DTC?
Amazon takes 8-15% in referral fees plus FBA fulfillment fees ($3-8 per item depending on size/weight) plus monthly storage. On a $30 item, that's often $7-10 of platform cost — versus 3% on DTC. Even with lower advertising costs (Amazon PPC tends cheaper than Meta), Amazon margins are thinner per unit.
Why do brands run Amazon if margins are worse?
Amazon delivers volume that DTC can't match — most categories have 5-10× more buyers searching Amazon than your DTC site. Even at thinner per-unit margin, total profit dollars can be larger. Plus Amazon takes 100% of fulfillment headache off your plate.
What's a healthy Amazon margin?
15-25% net margin after fees and ACOS is healthy. Below 10% means you're running the channel for the volume rather than the margin (still valid for inventory turnover or brand awareness). Above 30% is exceptional and usually means either a unique product moat or pricing power competitors can't match.
How do I price for both channels?
Most successful multi-channel brands price 5-15% higher on Amazon to offset the platform cost. Pricing identically across channels means Amazon eats your margin disproportionately. Pricing higher on DTC and matching on Amazon means you give up the Amazon margin advantage.
Should I use FBA or FBM?
FBA (Fulfilled by Amazon) for most cases — Buy Box wins, Prime eligibility, lower customer service overhead. FBM (Fulfilled by Merchant) for oversized items, slow-moving SKUs (storage fees crush you on FBA), or when you have efficient internal fulfillment. Most DTC brands run FBA on hero SKUs and FBM on long-tail.