Official Olsons
Non-Returnable Margin Calculator
Know which table you're sitting at before you place the bet.
♠
The Blackjack Insurance Principle
Your Deal Inputs
Enter the numbers for the ASIN you're evaluating. Everything else calculates automatically.
Cost per unitWhat you pay at the register
$
Amazon sale priceCurrent listing price on Amazon
$
Referral feeCategory-dependent (typically 8-15%)
%
FBA fulfillment feePer unit - check Amazon's fee schedule for size/weight
$
Units to testHow many you plan to send in
Fee Breakdown Per Unit
Fee
Per Unit
On Sale / On Return
Referral fee
$3.60
On sale price
FBA fulfillment fee
$5.39
Not refunded
Refund admin fee
$0.72
$5 or 20% of referral, whichever is less
Total fees on a sold unit
$8.99
Total cost of a return
$6.11
The Refund Scenario
Side-by-side: what happens to your profit when returns hit in a standard category vs. non-returnable.
Standard Category
$0.00
Insurance built in
Non-Returnable
$0.00
No insurance
Difference
$0.00
No additional risk
Source It - But Test Smart
Non-returnable profit is acceptable. Stick to recommended test quantities.
Per-Unit Economics Advanced
Expected profit per unit at 10% refund rate.
Standard Category
$0.00
Product comes back
Non-Returnable
$0.00
Nothing comes back
ABSORPTION ANALYSIS
3 units
Minimum units to absorb 1 return (non-returnable)
At 10% refunds, non-returnable costs you $3.60 more per unit than standard. The difference is the recovery value you lose ($2.88 per return). You need at least 3 units in a non-returnable test so the sold-unit profits cover 1 actual return.
Sensitivity Analysis
How your profit changes at different refund rates. The current rate is highlighted.
Break-Even Analysis
The maximum refund rate your deal can absorb before losing money in non-returnable.
BREAK-EVEN REFUND RATE
25%
Maximum safe refund rate (non-returnable)
Strong buffer. This deal can absorb significant returns.
Deal Comparison
Compare up to 3 deals side-by-side. Enter the details for each deal below.
1
Profit
$0.00
0.0% ROI
#1 Best ROI
2
Profit
$0.00
0.0% ROI
#2
3
Profit
$0.00
0.0% ROI
#3
Decision Tree
Should you source this deal in a non-returnable category?
Is the non-returnable profit > 0?
Yes
Is the break-even rate > 15%?
Yes
Source It - But Test Smart
No
Proceed With Caution
No
Skip This Deal
Quick Reference Table
Typical refund rates by category. Use these as starting points for your analysis.
Common Gotchas
Things that trip up even experienced sellers.
FBA fees aren't refunded
Amazon keeps the FBA fee even on returns, unlike referral fees which are credited back.
Recovery value varies
You might recover 50-90% of your cost when products come back, depending on condition and category.
Admin fees on returns
$5 or 20% of the referral fee (whichever is less) is charged per return, regardless of category.
Test quantities matter
Small tests amplify the impact of returns. Always calculate your break-even rate first.
♠
The Blackjack Insurance Principle
Standard categories give you "insurance" against returns - you get your product back. Non-returnable categories remove this protection, making returns much more expensive.
Always calculate the risk premium before sourcing.
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officialolsons.com/pages/returns-calculator
