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
