Profitability on low priced items with FBA
New seller, looking to source and sell low priced items in the $2-5 range. Using the revenue calculator, the FBA fees alone are $5+ resulting in a large loss per sale. How are other sellers retailing low priced items with such high FBA fees. For example, see this microwave popcorn (ASIN B07STNGDX5). The revenue calculator shows FBA fees of $5.81 for a 200% loss before COGS is considered!
Profitability on low priced items with FBA
New seller, looking to source and sell low priced items in the $2-5 range. Using the revenue calculator, the FBA fees alone are $5+ resulting in a large loss per sale. How are other sellers retailing low priced items with such high FBA fees. For example, see this microwave popcorn (ASIN B07STNGDX5). The revenue calculator shows FBA fees of $5.81 for a 200% loss before COGS is considered!
0 replies
Seller_kIukTwdhvntAp
" looking to source and sell low priced items in the $2-5 range."
You are likely to go broke using this as a business plan. Estimates are that up to 1/3 of Amazon sellers are actually LOSING money selling here.
The GOOD news is that you actually looked at the revenue calculator which is pretty unusual!
Since you are new just be sure to follow the requirements for the new, improved Amazon.
For any other rookies out there reading this, NOT paying attention to the following is a perfect example of how to get suspended on Amazon.
BEFORE listing anything (or even looking at the calculator) ask yourself these questions --
DO YOU have an LOA from the brand allowing you to sell on here?
DID YOU source from AUTHORIZED wholesale sources that your rep at the brand says are OK.
NOTE the verification is required from the brand that the source is legitimate and authorized, NOT from one of those touted on TikTok and YouTube as having "thousands of brands and products" that assures you that they are authorized.
If you have watched any YouTube or TikTok videos FORGET everything you saw there.
Spend hours/days on Seller U and read the Forum to see all the really creative ways rookies find to get suspended by ignoring the advice above!
https://sell.amazon.com/learn
Seller_nRFmxiQg4EGrw
Many sellers never look at the numbers, EVER. There was a post a couple of years back from someone saying that he'd been selling on Amazon for 2 years, never got paid, and now Amazon wanted HIM to pay $27K to Amazon!
He had done quite well volume-wise. Never bothered to check whether or not there was a profit (surprise; there wasn't!), even after two years didn't think something was up with not getting paid.
Don't follow the people too dumb (or lazy) to do the basic research.
And remember, Amazon gives you one chance; make sure you don't break the rules. "I didn't know" isn't going to get you forgiven if you violate the rules.
And welcome aboard! The fact that you're asking shows that you are above average in regards to newbies.
Manny_Amazon
Hello @Seller_TRy6sSZuGxtZK,
It looks like our seasoned sellers, @Seller_kIukTwdhvntApand @Seller_nRFmxiQg4EGrw was helping you with some thoughts about selling on Amazon.
If their response helped you, feel free to mark it as “Most Helpful reply” using the 3 dots in the corner of their post. Just in case others have the same issue, the Most Helpful Reply feature brings the selected response right to the top of your thread. Sellers will be able to see the answer right away as your discussion will have a green check-mark when searched within the forums.
Regards,
- Manny
