What's average margin net profit percentage per unit FBA? New on board
Hi,
I’m still a starter on FBA ( 6 months in only), started with 1k and made 8k in sale already with x2 products, however I can see that FBA fees increase and special with this inflation. I’m just curious that in my case after I pay all fees and VAT and calculating the net profit I’m only about 25%-30% per unit but from that at the end of the year is profit tax to GOV, therefore profit drops massively (I know about expenses) but still. My avg price is £13.99 - £19.99 at the moment. However thinking about merchant ? What will usually be the avg to net profit to make sustainable income to compensate your 5 to 17 job (let’s say if you had/have one) ? Currently working in Logistics for 6 yrs as senior management and big companies does very small net profit margin but they do millions of units in sales so not comparing those…
Reason for this topic is for my interest to create deadlines and expectations in order to succeed with my plans ( ridiculous that I want to build a fulfilment warehouse in EU 
, already in progress)
Open discussion
Thank you
What's average margin net profit percentage per unit FBA? New on board
Hi,
I’m still a starter on FBA ( 6 months in only), started with 1k and made 8k in sale already with x2 products, however I can see that FBA fees increase and special with this inflation. I’m just curious that in my case after I pay all fees and VAT and calculating the net profit I’m only about 25%-30% per unit but from that at the end of the year is profit tax to GOV, therefore profit drops massively (I know about expenses) but still. My avg price is £13.99 - £19.99 at the moment. However thinking about merchant ? What will usually be the avg to net profit to make sustainable income to compensate your 5 to 17 job (let’s say if you had/have one) ? Currently working in Logistics for 6 yrs as senior management and big companies does very small net profit margin but they do millions of units in sales so not comparing those…
Reason for this topic is for my interest to create deadlines and expectations in order to succeed with my plans ( ridiculous that I want to build a fulfilment warehouse in EU , already in progress)
Open discussion
Thank you
5 replies
Seller_XrsxyuONn8r2w
I always worked on a 30% profit on sales is fine, anything extra is a bonus. It does depend on your business model. Some sellers sell millions of items for little profit but add it up…huge amounts of money.
Why are you paying what appears to be corporation tax?
Seller_esvgLzKXw2YAl
To be quite honest, you wont’ get a straight answer to this question.
For you, it might be worth moving away from employed at a completely different level of profit to me.
It depends on what you need to live on, how much your currently earning, your level of risk and how much your happy to live on. Along with a few other factors, that I’m sure I’ve missed.
The only real answer, is, only you can answer that for your situation.
You should be looking at average margins, pre tax anyway. Net profit at the end of the day, is the figure that you need. It doesn’t matter whether you make 3p on 30p item, or £3 on a £30 item, it’s the same percentage. Generally, a lower priced item, you will sell a lot more of. So it balances out.
So your average selling price from that point of view, is utterly immaterial.
