Private Label ROI Calculator — China Sourcing
Use our private label roi calculator to calculate return on investment for private label products sourced from China. Includes all startup costs, inventory, and projected profit.
Based on current Amazon FBA fee schedules, published referral rates, and benchmark import cost assumptions.
Amazon fees change periodically. Verify current FBA rates in Seller Central before finalizing your cost model.
private label roi calculator
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Private Label Economics
Private labeling an imported product requires upfront capital that is entirely at risk. You are not just buying inventory; you are buying photography, Amazon Vine reviews, UPC codes, graphic design for packaging, and US trademark registration.
Your ROI calculation must treat these upfront fixed costs as an investment hurdle that the product's net margins must clear before true profitability is achieved.
Tips for China Importers
- Calculate your total Amazon cost before importing. FBA referral fee + fulfillment fee + storage + PPC + returns typically absorbs 45–55% of your selling price. Build this into your landed cost model before placing an order.
- Start with 300–500 units for launch. Launching with 2,000+ units before validating demand is one of the most common (and expensive) mistakes. Test velocity with a smaller shipment first.
- Send FBA-ready cartons from China. Prep work (poly-bagging, labeling, bundling) done in China costs $0.05–0.20/unit. Done at an Amazon prep center in the US: $0.50–1.50/unit. Same work, 5–10× the cost.
- Account for returns in your margin model. Amazon electronics return rates: 10–20%. Apparel: 20–30%. Toys/general: 5–10%. Factor your category's return rate into your per-unit profit calculation.
- Track your IPI score to avoid storage surcharges. Amazon charges long-term storage fees on inventory over 365 days. Keep your Inventory Performance Index (IPI) above 400 to avoid storage limits and surcharges.