Overview

In early 2026 Amazon updated the Buy Box ranking formula to give weight to “contribution profit,” the total revenue Amazon captures from each sale. The change adds a margin‑focused layer to the traditional emphasis on price and seller performance, meaning sellers must rethink pricing, fulfillment choices, and product selection to stay competitive in the Buy Box.

Key Points

• Contribution profit added — Amazon now scores listings on the combined referral and fulfillment fees they generate, not just the sale price.
• Margin sweet spot — SKUs that deliver a 25‑35 % contribution margin tend to rotate into the Buy Box more often than low‑margin, deep‑discount listings.
• Stable pricing rewarded — The algorithm favors sellers who keep margins steady over those who constantly undercut competitors with volatile pricing.
• FBA advantage amplified — Because Fulfilled by Amazon (FBA) orders include higher fulfillment fees, FBA sellers receive a double boost from both traditional and profit‑based criteria.
• Category‑specific thresholds — Electronics, apparel, grocery and other verticals each have distinct contribution‑margin benchmarks that influence eligibility.

How Contribution Profit Works

1. Fee aggregation — Amazon adds the referral fee (typically 15 % of the sale price) to the FBA fulfillment fee, which ranges from $3 to $8 based on size and weight.

   • Example: A $50 book sold via FBA might incur a $7.50 referral fee plus a $4.00 fulfillment fee, totaling $11.50 in contribution profit.

2. Margin calculation — The platform divides the combined fees by the sale price to derive the contribution margin percentage.

   • Example: The same $50 book yields an $11.50 contribution profit, equating to a 23 % margin for Amazon.

3. Buy Box weighting — Listings with higher contribution margins are ranked higher, even if their list price is above competing offers.