Calculating the profit
Dear community,
I’m quite new to this space and in real need of help trying to understand the numbers here. I have seen multiple sellers selling products for a price that definitely makes a loss according to Amazon’s profit calculator.
For instance, a product that I checked with one of a few wholesalers in the UK sells for £19.04, Amazon sellers sell the very same product for around £31.99 if not cheaper. According to Amazon’s profit calculator, the profit would be -£0.13 (negative), there are several products that come down to the same result. This is of course not even including my overheads and other costs.
I’m far from a financial guru but I feel like I’m missing something big here or is it all revenue vanity?
Calculating the profit
Dear community,
I’m quite new to this space and in real need of help trying to understand the numbers here. I have seen multiple sellers selling products for a price that definitely makes a loss according to Amazon’s profit calculator.
For instance, a product that I checked with one of a few wholesalers in the UK sells for £19.04, Amazon sellers sell the very same product for around £31.99 if not cheaper. According to Amazon’s profit calculator, the profit would be -£0.13 (negative), there are several products that come down to the same result. This is of course not even including my overheads and other costs.
I’m far from a financial guru but I feel like I’m missing something big here or is it all revenue vanity?
4 replies
Seller_ZJhFeE3tNKzfh
They could be trying to clear out stock
You also have no way of knowing if the sellers actually paid £19.04 for the product. They could have their own agreement with the wholesaler - or may be purchasing somewhere else for less.
Seller_JtVqwLGCL4JrJ
Big fish will be buying pallets of said item and getting it considerably cheaper than you can I would imagine. Finding profitable products is by far the hardest part of FBA unfortunately - They may be happy with 50p profit per unit since theyre selling a pallet full
