fba calculations, how does anyone make any profit?
I am new to Amazon, added my products ready for FBA prep and just checked out the revenue calculator.
I can't seem to make any profit at all - it seems it's going to cost me to sell on Amazon. How can anyone sell a product for €6.00 on Amazon using FBA or pan european without making a loss?
Using the revenue calculator, if I put in the cost of a bar of soap at €6.00 these are the results:
Referral fee €0.49 Amazon Fulfilment €4.18 Storage 0.3 Taxes on fees €0.98 Cost of goods €1 Net Profit -€1.68 Net margin. -27.99%
Can someone help me make this make sense please?
fba calculations, how does anyone make any profit?
I am new to Amazon, added my products ready for FBA prep and just checked out the revenue calculator.
I can't seem to make any profit at all - it seems it's going to cost me to sell on Amazon. How can anyone sell a product for €6.00 on Amazon using FBA or pan european without making a loss?
Using the revenue calculator, if I put in the cost of a bar of soap at €6.00 these are the results:
Referral fee €0.49 Amazon Fulfilment €4.18 Storage 0.3 Taxes on fees €0.98 Cost of goods €1 Net Profit -€1.68 Net margin. -27.99%
Can someone help me make this make sense please?
0 replies
Seller_QuM1AZgzfU9x4
Pan-EU is unlikely to be suitable for a new seller given the requirements around VAT registration unless perhaps they have an existing business.
Unless your soap is quite large then you already qualify for a lower Amazon fulfilment fee. If you're seeing 4.18 then that looks the fee for France of an XL envelope or small parcel at the reduced rate.
If you look at sellers of soap though you might find that a lot of them selling single bars are not using FBA.
Seller_1e2p7bmV1n5A8
Hi ForumLurker, thanks for replying.
It seems that it's not worth selling anything using Amazon FBA under £10 because the related fees just take all potential profit, yet Amazon FBA encourages us to keep prices under £10 which I don't understand.
If a seller is offering Amazon Prime, would this mean they are using FBA?
Seller_g1iS3CyD4zQ2y
The cosmetics category is extremely competative. Some sellers will be making pennies. Also some of your competitors will be wholesalers or even manufacturers who are selling for your buy price.
You are correct about the smaller items - selling in the 20-30£ range is more profitable for FBA, as long as the products are not oversize.
