My 3 months stint as amazon seller
I decided to see how amazon selling work and selected a few item to sale.
After working for 3 months this is what it looks like:
Sale: 48k, Shipping charges: 10k, Amazon Fee: 6.5k, Return: 10k, Ad cost: 5.2k, Cogs: 19k, Gst: 4k
Amazon made: 6.5k, Easy ship made: 10k, Govt made: 7k (Added GST paid by Amazon for commissions and shipping)
And I made loss of 6k and 15% Damaged inventory (got hand towel in return).
Conclusion no point in continuing this! how do other making money here? Until you sell product at 3x price you cant make money here.
My 3 months stint as amazon seller
I decided to see how amazon selling work and selected a few item to sale.
After working for 3 months this is what it looks like:
Sale: 48k, Shipping charges: 10k, Amazon Fee: 6.5k, Return: 10k, Ad cost: 5.2k, Cogs: 19k, Gst: 4k
Amazon made: 6.5k, Easy ship made: 10k, Govt made: 7k (Added GST paid by Amazon for commissions and shipping)
And I made loss of 6k and 15% Damaged inventory (got hand towel in return).
Conclusion no point in continuing this! how do other making money here? Until you sell product at 3x price you cant make money here.
7 replies
Seller_lFg7VUzl8pJZA
The last sentence is the point. If your price cannot absorb the direct and indirect costs, you should not sell the product. If you don't have products which will give you profit over these expenses then you should be on Amazon.
Gist is simple, to do business on Amazon, you have to earn despite of Amazon not because of Amazon.
Seller_zcIoJ3dl1lcFt
Actually, first three months Amazon supports sellers. Worst is yet to come. Your life will be hell.
Seller_Aeo5ECxyEBKli
does not work that way
how come
sales 48000
reutrn 10000
net sale 38000
amazon fee 6500 17%
ad cost 5200 14%
shipping 10000 ?? How come
gst 3906
cogs 19000
loss -6606
Seller_4qYebQ6IZhZeO
you should never spend on ads unless it gives you profit, we are already paying fees no need to pay extra for advertising
