Is it still profitable to buy on Alibaba and sell on Amazon?

Yes, but the margin for error is much smaller than it was 5 years ago. Success requires a product with a high perceived value, low dimensional weight to minimize FBA and ocean freight fees, and a Landed Cost that allows you to sell the product for at least 3x, ideally 4x, the factory FOB price.

What is the biggest cost in Alibaba to Amazon arbitraging?

Beyond the Cost of Goods Sold (COGS), the biggest costs are usually Amazon PPC (Pay-Per-Click) advertising and the 15% Amazon Referral Fee. Many sellers find their advertising spend consumes 15% to 25% of their gross revenue during the launch phase.

📦 Amazon & eCommerce

Alibaba to Amazon Profit Calculator — FBA Landed Cost & Margin

Use our alibaba to amazon profit calculator to calculate profit from buying on Alibaba and selling on Amazon FBA. Full cost breakdown from factory price to net Amazon payout.

Updated: 2026-04-13

Planning Reference

Inputs Last Reviewed April 2026

Reference Basis

Based on current Amazon FBA fee schedules, published referral rates, and benchmark import cost assumptions.

Planning Note

Amazon fees change periodically. Verify current FBA rates in Seller Central before finalizing your cost model.

Primary opportunity

alibaba to amazon profit calculator
Low SERP difficulty

Landed Cost Per Unit (Alibaba→FBA) USD FOB price + freight + duties + broker + FBA prep, all divided by units.

Amazon Selling Price USD

Order Quantity units

Amazon Category

Unit Weight (packaged) lbs

The Alibaba-to-Amazon Pipeline

The classic "Amazon FBA" business model involves sourcing a generic or slightly customized product from an ODM supplier on Alibaba and shipping it into Amazon's fulfillment network under a private label brand.

To succeed in this highly competitive ecosystem, you must meticulously account for every penny extracted by both Chinese logistics and Amazon's fee structure. A supplier quoting $5.00 on Alibaba translates to a $7.00 landed cost, which translates to a $25.00 minimum viable retail price on Amazon.

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.