is selling coffee and tea on amazon fba profitable
Last updated: April 2026 ·affiliate disclosure
Most coffee and tea sellers on Amazon FBA see net profit margins between 15% and 35% after all fees, depending on your sourcing costs and price point. You'll compete in a category with high volume and relatively low barriers to entry, which means margins compress quickly if you don't control costs. Profitability is possible, but you're fighting against established brands and private label competitors who've already optimized their supply chains.
Amazon FBA Fees for coffee & tea Sellers
Amazon FBA charges you a referral fee of 15% on coffee and tea sales, plus fulfillment fees that run $3.50 to $5.00 per unit depending on weight and dimensions. A typical 1-pound bag of premium coffee costs about $0.80 to $1.20 in fulfillment fees alone. You'll also pay storage fees (around $0.87 per cubic foot annually for standard-size items), plus Amazon's 2.25% payment processing fee on top of everything else.
Profit Margin Benchmarks
Good margins in this category start at 40% gross profit (before Amazon fees), which leaves you around 25% net profit if your product costs $4 and you sell it for $12. Average performers operate at 35% gross margins, netting roughly 20% after fees. Poor margins happen below 30% gross profit—you might hit 10-15% net, which barely covers your time and marketing spend once you factor in ads, returns, and replacements.
Calculate your actual numbers
The margins above are averages. Your real profit depends on your specific price, costs, and volume.
Run Your Amazon FBA Profit Calculation →Verdict: Is It Worth It?
Selling coffee and tea on Amazon FBA is profitable if you can source at under $2.50 per unit and sell above $7.50, giving you the margin cushion you need. Most new sellers fail because they underestimate competition and oversupply, driving prices down. It's worth trying if you have a differentiated product (single-origin, specialty blends, functional tea) and capital to invest in advertising. Generic commodity coffee? Skip it.
Frequently Asked Questions
What are the total Amazon FBA fees for coffee and tea?
You pay 15% referral fee plus $3.50–$5.00 fulfillment per unit, plus 2.25% payment processing and storage fees at $0.87 per cubic foot annually. For a 1-pound bag sold at $12, expect total fees around $3.50–$4.50 per unit, or 29–38% of your sale price.
What profit margins can I realistically expect selling coffee and tea on Amazon FBA?
Net profit margins typically range from 15–35% after all Amazon fees, assuming you source at $2–$4 per unit. Premium or specialty tea can hit 35–40% net margins, while commodity coffee might only net 10–20% due to lower sale prices and higher competition.
How much money do Amazon FBA coffee and tea sellers actually make?
A mid-tier seller moving 100 units per month at $10 average price and 25% net margin makes around $250 net profit monthly (before your own operating costs and ads). Top sellers moving 500+ units monthly can reach $1,200–$3,000 monthly net profit, but they've spent months building reviews and ranking.
Is it worth selling coffee and tea on Amazon FBA in 2026?
Yes, if you have a differentiated product and can source below $2.50 per unit. No, if you're selling generic bulk coffee—margins are too thin and competition is brutal. The category is mature, so success depends on finding an underserved niche (origin-specific, functional blends, organic) rather than trying to compete on price alone.
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