High winterwear commisions
the commissions being charged on items like jackets and sweatshirts for winter wear on amazon is insane. Charging almost 25% at any price slab is really out of mark making product expensive for the customer at any point when compared to Flipkart that merely charges anything and entrie sales actually shifts to flipkart. here is an example
being a manufacturer a basic jacket with a hood, costs minimum of 380 rs and i can see almost all sellers have listed it at 899 on flipkart as it has zero commission and just 150 rs charges in total.
BUT ON AMAZON IT GOES LIKE THIS IF I PRICE IT AT RS. 999 (INC. 5% GST)
1. COMMISSION+LOGISTICS - RS. 410
2. RETURNS (BEST CASE SCENARIO 12% CUTSTOMER RETURN) - RS. 45-50
3. ADS - BARE MINIMUM 10% if you are a pro advertiser and not doing any waste spend - RS. 100-130 (in real life scenarios, it would go at least 120-130)
4. PRODUCT COST - 380
GRAND TOTAL AT AROUND - Rs. 935-960
A MERE PROFIT 6-7% PROFIT and that too if i keep all costs at the best possible level which in reality is not possible. Also you have to deal with cost of dead stocks in some designs
Now if you plan to increase the price by 100 rs then it would be impossible as the gst slab increases to 12% from 5% forcing you to increase at least 250 Rs. in order to make the same 50-80 Rs. profit. This is making the customers switch to Flipkart without even thinking twice.
High winterwear commisions
the commissions being charged on items like jackets and sweatshirts for winter wear on amazon is insane. Charging almost 25% at any price slab is really out of mark making product expensive for the customer at any point when compared to Flipkart that merely charges anything and entrie sales actually shifts to flipkart. here is an example
being a manufacturer a basic jacket with a hood, costs minimum of 380 rs and i can see almost all sellers have listed it at 899 on flipkart as it has zero commission and just 150 rs charges in total.
BUT ON AMAZON IT GOES LIKE THIS IF I PRICE IT AT RS. 999 (INC. 5% GST)
1. COMMISSION+LOGISTICS - RS. 410
2. RETURNS (BEST CASE SCENARIO 12% CUTSTOMER RETURN) - RS. 45-50
3. ADS - BARE MINIMUM 10% if you are a pro advertiser and not doing any waste spend - RS. 100-130 (in real life scenarios, it would go at least 120-130)
4. PRODUCT COST - 380
GRAND TOTAL AT AROUND - Rs. 935-960
A MERE PROFIT 6-7% PROFIT and that too if i keep all costs at the best possible level which in reality is not possible. Also you have to deal with cost of dead stocks in some designs
Now if you plan to increase the price by 100 rs then it would be impossible as the gst slab increases to 12% from 5% forcing you to increase at least 250 Rs. in order to make the same 50-80 Rs. profit. This is making the customers switch to Flipkart without even thinking twice.