Request for Guidance on Profitability Challenges and Selling Strategies on Amazon
Hello Amazon team, I have a few questions for you that I would like to ask. For the past year, I have been selling on Amazon, and during this time, I have realized that I have not made any profit. I have been associated with you for a year, but I haven’t seen any profit in this.
In the beginning, I did earn some money, and for one or two months, it felt like there was growth, and things were going well. But after three months, it seems like I have only spent money, and I haven’t seen any profit.
I have spent a lot of money on Amazon advertisements, and the result was that I did get orders, but there was no profit. No money from Amazon has been credited to my bank account in the last 6 months. So, I wanted to know if this will continue like this in the future, or if this is how things typically work on Amazon. Please let me know.
It is possible that there might have been some mistakes on my part as well, due to which I am unable to understand Amazon. There could be mistakes from my side in understanding how to set my profit margin, how to sell on Amazon, or any other issue.
If you can provide some solutions for this or help me understand it a bit, I will always be grateful to you.
thank you.
Request for Guidance on Profitability Challenges and Selling Strategies on Amazon
Hello Amazon team, I have a few questions for you that I would like to ask. For the past year, I have been selling on Amazon, and during this time, I have realized that I have not made any profit. I have been associated with you for a year, but I haven’t seen any profit in this.
In the beginning, I did earn some money, and for one or two months, it felt like there was growth, and things were going well. But after three months, it seems like I have only spent money, and I haven’t seen any profit.
I have spent a lot of money on Amazon advertisements, and the result was that I did get orders, but there was no profit. No money from Amazon has been credited to my bank account in the last 6 months. So, I wanted to know if this will continue like this in the future, or if this is how things typically work on Amazon. Please let me know.
It is possible that there might have been some mistakes on my part as well, due to which I am unable to understand Amazon. There could be mistakes from my side in understanding how to set my profit margin, how to sell on Amazon, or any other issue.
If you can provide some solutions for this or help me understand it a bit, I will always be grateful to you.
thank you.
2 replies
Seller_K0CRwxyJKIDjl
Hello there, I have also been selling on amazon since past year, and so forth I have seen is competition across sellers, here are some key facts you need to consider when to spend on advert and when not. more pointers to follow:
1. See for margins across your product folio to make sure you are dealing right products in marketplace.
2. low cost product folios tends to even or minus out our earnings Say An item which you are selling for 1000 Rs on amazon while attract almost this figure( approx. values)
+1000
-220 amazon charges
-100 shipping fees
-150 taxes
-590( approx. product cost inc gst)
balance: -60 you have spent across to sell an item for 1000
for exact details you can refer to each email you receive as sold by amazon on your email inbox to fetch exact data, by this you will have an insight about your products.
3.try to maintain excel sheet to identify and stop selling loss making items
4. Ensure margins are left after selling items, you can maintain price for the same.
5. you can alternate advertisement cost by taking control of what needs to be advertised, amazon also offers free credits to advertise products make sure to use them wisely as this will ensure and help to reduce advert cost as well enjoy benefits of advertising.
so far i have made a decent profit on amazon using these methods, I might not be as visible as my competitors but i have earned a decent income using these methods.
Sakura_Amazon_
Hello @tadow_top,
This is Sakura from Amazon. Welcome to the Seller Forums.
Did you review the observations shared by @Seller_K0CRwxyJKIDjl ? Did you find any parts particularly helpful?
I'd love to hear from other sellers in our community about their experiences and strategies. Has anyone else overcome similar challenges in their first year? What approaches worked for you ?
Sakura
