Amazon Seller Profitability Framework

Overview

Intentwise's Amazon profitability reporting consolidates data from settlement reports, product cost data, and advertising performance to provide a complete financial view of your business.

Reference Guide — Metrics, Data Sources & Calculation Logic

Metric	What It Signifies	Detailed Explanation	Source Table	Field	Calculation Logic / Parameters
Total Sales	The gross revenue generated from customer orders before any deductions.	This is the top-line revenue figure — the sum of all principal amounts collected from customer orders. It represents the full selling price paid by customers and is the starting point for any profitability calculation.	sellercentral_settlement_report_V2	amount	transaction_type = 'Order' AND amount_description = 'Principal'
Cost of Goods Sold (COGS)	The direct cost of producing or purchasing the products that were sold.	Calculated by multiplying the unit cost of each product by the quantity purchased in orders. This is a fundamental expense in determining gross profit. A lower COGS relative to sales indicates better margin on the product itself.	sellercentral_settlement_report_V2 refdata_product_cost	amount, unit_cost	SUM(CASE WHEN transaction_type = 'Order' AND amount_description = 'Principal' THEN quantity_purchased ELSE 0 END) unit_cost*
FBA Fulfillment Fee	Fees charged by Amazon for storing, picking, packing, and shipping orders through their Fulfillment by Amazon (FBA) program.	Includes per-unit fulfillment fees. These fees are a core operating cost for FBA sellers and directly reduce profitability.	sellercentral_settlement_report_V2	amount	amount_description IN ('FBAPerUnitFulfillmentFee')
Commission Fee	Amazon's referral fee charged as a percentage of each sale.	Amazon charges a commission on every order, which varies by product category (typically 6–15% of the sale price). This is one of the largest cost components for most sellers and is deducted directly from sales revenue.	sellercentral_settlement_report_V2	amount	transaction_type = 'Order' AND amount_description = 'Commission'
Shipping Fee	The shipping charge collected from customers on their orders.	This represents amounts billed to customers specifically for shipping their orders. For sellers who charge shipping separately, this is an income line; for those offering free shipping, this may be zero. It is part of the item price paid by the buyer.	sellercentral_settlement_report_V2	amount	amount_description = 'Shipping'
Promotions	Discounts or promotional credits applied to orders.	Captures the monetary value of promotions run by the seller (e.g., coupons, lightning deals, percentage-off promotions). These reduce the effective revenue received and must be accounted for to understand true net sales.	sellercentral_settlement_report_V2	amount	amount_type = 'Promotion'
Refunded Commission	In case of returns, refund of the commission which was incurred by the seller.	When a customer returns an item, the commission which was charged by Amazon is returned back to the Seller. This will reflect as a positive amount in the books.	sellercentral_settlement_report_V2	amount	transaction_type='Refund' and amount_type = 'ItemFees' and amount_description in ('Commission')
Non-Refund Commission	The portion of the commission fee that Amazon retains even when a refund is issued.	When a customer returns an item, Amazon refunds part of the commission but keeps a small 'refund administration fee.' This metric isolates that retained commission amount, highlighting the residual selling cost even on returned orders.	sellercentral_settlement_report_V2	amount	amount_description IN ('Refund commission', 'Refund Commission')
Product Cost	The total cost of inventory sold, calculated at the unit level.	Derived by multiplying the unit cost (from product cost reference data) by the quantity purchased in each order. This is the core input cost for COGS and is critical for understanding product-level profitability.	sellercentral_settlement_report_V2 refdata_product_cost	quantity_purchased, unit_cost	transaction_type = 'Order' AND amount_description = 'Principal'Joined with unit_cost from refdata_product_cost
Customer Return Fee	Fees charged by Amazon for processing customer returns through FBA.	When a customer returns an FBA item, Amazon charges a fee to handle the return. This metric captures those FBA customer return fees and is an important cost for sellers with high return rates.	sellercentral_settlement_report_V2	amount	amount_description LIKE '%FBACustomerReturn%'
Gift Wrap	Revenue or cost associated with gift wrapping services on orders.	Represents the gift wrap charge on customer orders. For sellers enrolled in Amazon's gift wrap program, this can be a small additional revenue line or an offsetting cost depending on how it is structured in the settlement.	sellercentral_settlement_report_V2	amount	amount_description in ('GiftWrap', 'GiftwrapChargeback')
Reimbursement	Compensation received from Amazon for lost, damaged, or destroyed inventory.	Amazon reimburses sellers when inventory is lost in a warehouse, damaged by Amazon, or goes missing during inbound shipment. This metric aggregates those credits, which partially offset inventory-related losses.	sellercentral_settlement_report_V2	amount	amount_description IN ('REVERSAL_REIMBURSEMENT', 'WAREHOUSE_LOST_MANUAL', 'FREE_REPLACEMENT_REFUND_ITEMS', 'MISSING_FROM_INBOUND')
Other Expenses	Miscellaneous fees and adjustments that do not fall into standard categories.	Covers items such as SAFE-T reimbursement clawbacks, goodwill adjustments, non-subscription fee adjustments, and compensated clawbacks. These are irregular or one-off costs that still impact net profitability and should be monitored periodically.	sellercentral_settlement_report_V2	amount	amount_description IN ('COMPENSATED_CLAWBACK', 'SAFE-T reimbursement', 'NonSubscriptionFeeAdj', 'Goodwill', 'FBA Inbound Placement Service Fee', 'Adjustment', 'Storage Fee', 'RemovalComplete', 'Amazon Shipping Charges', 'Restocking Fee')
Product Quantity	The total number of units sold through customer orders.	Counts the quantity of products purchased across all orders. This is a key operational metric that, when combined with revenue and cost data, enables per-unit profitability analysis and trend tracking over time.	sellercentral_settlement_report_V2	quantity_purchased	transaction_type = 'Order' AND amount_description = 'Principal'
Return Shipping Fee	Charges incurred for shipping the product back to Amazon warehouse in case of returns.	Amazon might hire external shipping services to ship the product back to the warehouse. Sellers are charged for such cases.	sellercentral_settlement_report_V2	amount	amount_description in ('ReturnShipping', 'Shipping label purchase', 'Shipping label purchase for return')
Refunded Sales	Sales from the products which were returned.	In case of Returns, the amount which was earlier reflecting as sales will be deducted. This will be a negative record in the books.	sellercentral_settlement_report_V2	amount	transaction_type='Refund' and amount_type = 'ItemPrice' and amount_description='Principal'
Subscription Fee	Fixed Monthly Fee for Amazon.	Amazon will charge a fixed fee for the use of Amazon platform. This charge is irrespective of the sales.	sellercentral_settlement_report_V2	amount	amount_description='Subscription Fee'
Cost of Goods Returned	Adding back the cost of goods sold which were returned.	When products are sold, the dollar value of cost of goods sold are deducted. When the products are returned, the value of these goods are added back.	sellercentral_settlement_report_V2 refdata_product_cost	amount	transaction_type='Refund' and amount_description='Principal'joined with product cost table
Advertising Spend	Cost of sponsored ads on Amazon.		Advertising reports	amount

How Profitability Is Calculated

Profitability analysis follows a top-down structure:

Regularly reviewing each component helps identify where margin is being lost and which cost categories offer the greatest opportunity for improvement.