This example follows a single kitchen gadget from research to month 12 on Amazon FBA, using 2026 fee assumptions and a conservative ad budget. It runs at a loss through month 5, turns a monthly profit in month 6 and recovers cumulative losses around month 11.
Cumulative cash turns positive in M11 in this scenario. Profit is shown after platform fees, ads and an assumed management fee.
| Month | Revenue | Profit |
|---|---|---|
| M1 | $0 | −$2,000 |
| M2 | $0 | −$2,300 |
| M3 | $1,800 | −$2,779 |
| M4 | $4,500 | −$2,000 |
| M5 | $7,800 | −$779 |
| M6 | $11,400 | $561 |
| M7 | $13,500 | $1,300 |
| M8 | $15,600 | $2,040 |
| M9 | $16,800 | $2,420 |
| M10 | $19,500 | $3,000 |
| M11 | $24,600 | $4,640 |
| M12 | $27,000 | $5,000 |
Product research narrows dozens of ideas to one gadget with a margin above 35% after fees. Supplier samples are ordered from three factories and compared.
A first order of about 1,000 units goes into production. Photography, listing copy and keyword research are done while goods are made and shipped.
Inventory checks in to FBA and the listing goes live. PPC runs at a loss per sale while the first reviews come in, and sales start slowly.
Low-converting keywords are cut and bids move to terms that sell. Monthly profit turns positive in month 6 as organic rank picks up.
A reorder is placed early to avoid a stockout. Ad cost per sale falls as review count grows.
Holiday demand lifts sales, while higher Q4 storage fees and ad costs trim margin. Cumulative losses are recovered around month 11.
A line-by-line look at what it costs to launch an Amazon FBA product in 2026, from first inventory order to PPC, with three budget tiers.
Amazon FBAReferral, fulfillment, storage, inbound placement, low-inventory and returns fees, explained one by one, then added up on a $30 product.
StrategyFees went up again in 2026 and competition is real. Here is where FBA margins stand, what squeezes them, and which sellers still make money.
Run your own numbers with the FBA Profit Calculator, see the full service details, or compare all example scenarios.
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