100 is the example result. Read it using the units and relationship stated below.
FBA Inventory ROI uses inventory contribution/return, inventory investment.
Protecting contribution before accepting a price
For fba inventory roi, the relationship is ROI (%) = (return − investment cost) ÷ investment cost × 100. The amount depends on the supplied inventory contribution/return, inventory investment, rather than a live market price or a value imported from another record. A quote can meet a revenue target and still leave too little to cover delivery. Separate the selling-price denominator from the cost denominator: margin and markup answer different questions. A discount changes contribution even when the supplier cost stays fixed.
What the model includes
ROI (%) = (return − investment cost) ÷ investment cost × 100. A pricing review should retain the supplier cost, sale price and the reason for any allowance. Returns, payment charges, delivery and tax require explicit treatment; they should not disappear inside a percentage labelled profit. Compare the proposed price with the customer agreement and delivery capacity. A mathematically achievable margin does not establish that buyers will accept the offer.
Example with the supplied inputs
Inventory contribution/return: 5000; Inventory investment: 2500. Result: 100. The values are illustrative.
Compare one changed input
Inventory contribution/return changes from 5000 to 5500. The result becomes 120. All other inputs remain fixed.
Calculation rule
ROI (%) = (return − investment cost) ÷ investment cost × 100.
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Inventory contribution/return | 5000 | Use the source quantity represented by inventory contribution/return. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Inventory investment | 2500 | Use the source quantity represented by inventory investment. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 100 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Inventory contribution/return, Inventory investment. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Inventory contribution/return on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 100.
Change Inventory contribution/return from 5000 to 5500 while keeping every other value fixed. The result becomes 120. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026