Unit Economics

Unit economics refers to the per-unit financial breakdown of an Amazon product — selling price minus all costs (COGS, FBA fees, referral fees, advertising, storage, shipping) to determine profit per unit and margin percentage.

Why Unit Economics Matters for Amazon Sellers

Unit economics is the foundation of Amazon FBA profitability. Without accurate per-unit cost accounting, البائعون cannot set prices competitively, evaluate niche viability, or build sustainable businesses. Even small per-unit cost errors compound at scale.

How RIDGE Analyzes Unit Economics

RIDGE provides the most comprehensive unit economics modeling available, accounting for 15+ cost line items including COGS, inbound shipping, prep costs, FBA fulfillment, storage, referral fees, PPC spend per unit, returns, and more.

Practical Example

Selling price: $24.99, COGS: $4.50, Inbound: $0.80, FBA fee: $5.40, Referral: $3.75, PPC/unit: $2.25, Storage: $0.35, Returns reserve: $0.50. Net profit: $7.44/unit (29.8% margin).

الأسئلة الشائعة

What costs are commonly forgotten in Amazon unit economics?+

Commonly missed: inbound shipping to FBA, prep/labeling costs, return processing, long-term storage fees, PPC cost per unit sold, Amazon lending interest, and currency conversion fees (international marketplaces).

What is a healthy profit margin for Amazon FBA?+

Target 25-35% net margin after ALL costs including advertising. Below 20% is risky (thin margin for errors or market changes). Above 40% is excellent but rare. RIDGE models realistic margins using competitive pricing data.

مصطلحات ذات صلة

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