Amazon vs Your Own Store: Compare Contribution per Order

Compare an Amazon marketplace order with an own-store order using the actual revenue and costs of each channel. Marketplace fees, fulfillment, advertising and refunds can differ from your store's payment fees, pick-and-pack and customer acquisition. Neither channel wins from its fee percentage alone. The fictional USD examples below illustrate the worksheet; they are not Amazon fee quotes, current rate estimates or a recommendation to choose one channel.

Quick answer

Subtract landed product cost, fulfillment, shipping subsidy, channel fees, expected order losses and acquisition cost from paid revenue. Compare contribution per order, total monthly contribution and the fixed commitments each channel adds. Use current statements and the fee calculator for your actual marketplace category and fulfillment method. Keep traffic forecasts separate from measured sales.

The direct answer: a $40 product

Suppose a marketplace order produces $40 revenue. Landed product cost is $12. A hypothetical marketplace selling fee is 15% of revenue, or $6. Fulfillment costs $5, attributed advertising $4 and the expected net returns-and-loss allowance $1. Contribution is $40 − $12 − $6 − $5 − $4 − $1 = $12, or 30% of revenue.

The 15% assumption is purely illustrative. Actual Amazon referral and other fees depend on the product, program, category, dimensions, price and current terms. Use Amazon’s official selling-fee page and its product-specific fee tools for the actual configuration. Obtain the exact values rather than treating this example as a current fee schedule.

Now model the same product through an own store at $40. Landed cost stays $12. Payment processing is hypothetically 3% plus $0.30, or $1.50. Pick-and-pack costs $2, seller-funded shipping $4, attributed acquisition $8 and expected net returns-and-loss allowance $1.

Own-store contribution is $40 − $12 − $1.50 − $2 − $4 − $8 − $1 = $11.50, or 28.75%. Despite the lower selling fee, the own store leaves $0.50 less per order because acquisition and fulfillment differ.

At 100 orders each, contributions are $1,200 and $1,150 before the channels' fixed commitments. This comparison cannot establish which channel will generate 100 orders. Keep observed orders and forecast orders clearly separated.

The ecommerce contribution guide explains why these remaining dollars are not final profit. Platform subscriptions, software and committed staff still need coverage.

What changes the answer

Fulfillment method changes the costs. Marketplace-managed fulfillment and seller fulfillment use different fee and workload structures. Own-store fulfillment can also be outsourced or performed by committed staff. Compare a complete actual configuration, not a mixture of favorable parts from several options.

Acquisition is often the deciding variable. Organic demand can reduce the incremental cash acquisition cost of some orders, but producing content, managing listings and running campaigns still consumes resources. Do not automatically call all organic sales free or charge the full monthly marketing budget to each order.

Returns need a net cost boundary. Product recovery, unrecovered shipping, processing deductions and refund adjustments can all matter. Do not subtract the refunded revenue again if the revenue figure is already net of refunds. Model the expected loss consistently.

Settlement timing affects cash. A channel may pay after the supplier or carrier must be paid. Contribution can be positive while cash is temporarily tied up. Use actual settlement terms rather than assuming both channels fund inventory on the same day.

Storage and product dimensions affect fulfillment. A bulky low-price item can have a very different cost structure from a small high-price item. Use the SKU's actual size and weight when consulting a fee tool.

Channel fixed commitments need a separate comparison. If one channel adds $200 monthly software and administration costs, its per-order contribution must cover that expense. Shared costs should not be allocated as though removing one channel would eliminate them all.

The ecommerce return-cost guide helps you separate returned units, refunded revenue and the costs that remain after recovery.

Three worked scenarios

Lower own-store acquisition cost

Keep the own-store example but reduce attributed acquisition from $8 to $5. Contribution rises from $11.50 to $14.50. At 100 orders, that is $1,450 before fixed commitments, or $250 more than the marketplace example.

Under the remaining original own-store costs, contribution before acquisition is $19.50. To match the marketplace's $12, own-store acquisition can be no more than $7.50 per order. This is a contribution threshold, not a target return on advertising based on unknown traffic.

Different marketplace advertising cost

Increase attributed marketplace advertising from $4 to $7. Marketplace contribution falls to $9. At 100 orders it leaves $900. The selling-fee assumption has not changed; acquisition has.

If own-store contribution remains $11.50, the own store leaves $250 more at equal 100-order volume. Actual order volumes, customer repeat behavior and fixed costs can reverse the monthly comparison, so keep them visible.

Fixed costs and unequal volume

Suppose marketplace contribution is $12 and the channel adds $150 monthly fixed commitments. At 200 orders, net channel contribution after those commitments is $2,400 − $150 = $2,250.

Own-store contribution is $14.50, with $300 channel-specific fixed commitments and 150 orders. The comparable result is $2,175 − $300 = $1,875. Higher contribution per order has not produced the higher monthly result because volume and fixed costs differ.

How to run your own numbers

Create one consistent worksheet per SKU and channel, then use the ecommerce break-even calculator for each configuration. Enter the channel's paid price, product cost, fulfillment, shipping subsidy, fees and acquisition, with fixed commitments counted once.

MyBreakeven supports other currencies. Avoid comparing one channel's gross collected amount with another's net paid revenue. Taxes and money belonging to third parties require their own correct treatment outside this simplified contribution example.

Use actual order statements to check the worksheet. Match each deduction to the field where it belongs. If a fee combines several services, do not add those same services again as separate guessed costs.

Compare repeat orders separately when the data supports it. An initial acquisition cost may not recur on every repeat sale, but repeat customers still create payment, fulfillment and product costs. Do not assume a future lifetime value that has not been observed.

The shipping-cost guide helps you distinguish carrier cost from the amount customers pay for shipping.

Common mistakes

Copying a general marketplace fee percentage into every SKU ignores product-specific terms. Verify the actual category and fulfillment configuration.

Assuming own-store orders have zero acquisition cost overlooks paid campaigns and the resources used to build demand. Separate measured cash acquisition from committed marketing work.

Comparing gross marketplace sales with net own-store revenue uses different definitions. Reconcile paid revenue first.

Counting a returns allowance and the same net refund loss twice understates contribution. State the basis and recovery assumptions.

Choosing solely by margin percentage ignores volume and channel-specific fixed costs. Calculate total monthly dollars as well.

Using contribution to promise traffic confuses economics with demand. A mathematically attractive channel still needs customers.

FAQs

Are the example marketplace fees current Amazon rates?

No. They are explicit hypothetical assumptions for arithmetic. Use Amazon's current official fee tools and your actual product configuration before quoting or purchasing inventory.

Is an own store always cheaper?

No. Its payment fee may be smaller, while acquisition and fulfillment can be larger. Compare the complete paid order and monthly commitments under your actual costs.

Should I sell on both channels?

The worksheet can compare economics, but capacity, stock allocation and customer demand also matter. Test the channel-specific workload and cash timing. Positive contribution alone does not prove two channels fit the operation.

How do I count organic orders?

Record their actual order costs and any attributable acquisition spending. Keep committed content and marketing work in the appropriate monthly budget. Avoid calling every resource used to win organic demand free.

Should marketplace storage be a per-order cost?

It can be allocated for a management comparison, but label the period and denominator. If the same storage cost is already in overhead, do not enter it twice. Slow stock may need a separate holding-cost view.

Does the higher contribution channel always win?

Only at comparable volume and other relevant conditions. Fixed commitments, cash timing and actual sales can change the monthly result. Use a complete scenario instead of one isolated number.

Closing takeaways

• Use actual product-specific fees and statements.
• Compare acquisition and fulfillment alongside selling fees.
• Calculate monthly contribution after channel-specific commitments.
• Keep sales forecasts separate from verified order economics.

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