True Cost of an Amazon Business

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Seller_BYn3ICHDweKIc

True Cost of an Amazon Business

We manufacture our own products, make them in house. We now only have 1 employee (myself), but in our busiest years we've had 2 employees as well as my wife. Now that I'm by myself, I work probably 60+ hours a week, constantly going.....constantly constantly trying and working. As for a recent example, lets do the math for last month.......

10k Sales

6K Amazon Fees

2.5k Supplies

400 warehouse costs (we fortunately own our warehouse but pay an HOA fee)

Final Profit: $1,100

Now lets do a previous month from a previous year when Amazon took less and hadn't changed it's search algorithm which has tanked sales......just my wife and I working here.

26k Sales

15.4k Amazon Fees

5k Supplies

400 warehouse costs

Final Profit: $5200

Amazon TAKES too much. We're on foodstamps now. And I work 60+ hours a week because that is what is needed to make, ship, converse with customers, and deal with Amazon.

Unsustainable.

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102 replies
Tags:Amazon business
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102 replies
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Seller_kIukTwdhvntAp

"Unsustainable"

Hopefully you have already been selling on OTHER sites as well as here. If you haven't, why not?

There are dozens/hundreds of sellers in the same boat that you are in and have either left Amazon or have just added other outlets.

I sell on several other sites as well as a couple of my own websites.

Expand you horizons and fly away!

486
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Seller_rI7BZIczK8iAC

It's simple: you sell too cheap! What salary per hour does it give you? Wouldn't you get more working as employee in an Amazon warehouse? With social insurance?

1229
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Seller_6fK2KJK28pv1W

So true - the amount of fees Amazon takes is outrageous and putting people out of business. They need to lower to 30percent. This over 40 percent is ridiculous.

330
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Seller_I2VicKYwfCNhg

I don't know if you looked at the math here.... but the only difference percentage wise is the cost of your supplies, not the Amazon fees.

This looks like an internal problem, and not an Amazon one. Both figures indicate a 60% fee paid to Amazon. Your supply cost increased 5%.

138
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Seller_G1dITKzjrjqtm

How many units are you selling a month? What exactly are the "Amazon fees" Is it FBA? How much do you sell your product for?

I assume you have a low-priced product and some that 60% Amazon takes is a packing and shipping cost from the FBA warehouse.

Are you advertising? What are the PPC fees?

Your supply cost has increased 30%, have you raised prices to compensate for that?

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