Amazon FBA not good, please someone help
I have sold over 18 items of my product using FBA estimated fee for my pricing. All sales made negative margin, so i incurred loss. So I have to pay amazon extra from my pocket for selling all those Items via FBA. Most loss came from Italy market place. I have no choice but to reasonably increase my price per item to cover my cost based on fees took by FBA. And since then no sales again especially from Italy and France market place.
Please someone help… is it possible to stop loss making on the Amazon platform?
50 replies
Seller_NoLYurmb006tq
If your item is not selling either other people or selling it cheaper and have the BB or people just don’t want to pay the price your charging
Seller_BS5lg2keRs2QO
Depending on which fee estimate you are using, it may or may not include VAT on the fees, so you will have to factor that in.
Your main issue seems to be that you are fulfilling orders across the EU from your stock in the UK which is very expensive when it comes to the fees. You can go into each marketplace and increase the prices. I think it’s also possible to add a fixed percentage to the UK price for each marketplace but I can’t remember which screen that is.
Edit as i failed to understand a part of your problem. If your prices in the other marketplaces are no longer competitive then you’ll have to go into each marketplace from the drop-down at the top of seller central and close the listings. You’ll then also need to unlink those marketplaces to prevent future listings from spreading across.
Seller_saK5Ah2SaNYjL
Did you even look at the rate card before listing? They don’t hide the costs, no matter how ridiculous.
Seller_DROodOAYHftnc
Before even thinking of using FBA you need to check ALL the fees involved - getting your items to the FC, storage fees etc. etc - not cheap depending on what it is you’re slling.
Seller_xDtaDZ1Iek9Fq
just a quick example:
if your item is small parcel around 1kg and you are selling £10 in UK with cost price around £4 including VAT (assuming you are VAT registered); then you will get between £1-2 back from the sale in FBA for UK. That exclude the storage and shipping in cost. So around 40% is fees
for cross-border; the price need to be adjusted not just for extra cost for fulfilment but also for currency differences.
Seller_7VbclcPFFRTnc
Also, are you signed up to store your products in different countries rather than just in UK? if so you need to check the fees there and also make sure you are registered for VAT in any countries you are required to
Always worth lots of reading on the seller university pages before starting out
Seller_xUKHc5xSYJmI4
Hi
You can use the FBA calculator link below
https://sellercentral.amazon.co.uk/hz/fba/profitabilitycalculator/index?lang=en_GB
Seller_gSzao5tsKB0Ds
One of the most important things to understand are the fees - particularly when selling to EU countries.
It’s not unusual to hear many new sellers come on here and eventually realising FBA fees are higher than expected. You have no choice other than increase the prices and suffer the reduction in sales… after all you’re doing this to make money right?
Seller_l2mKgURYjZCjx
Thanks for all feed back.
Amazon not so that easy. Very complicated and time consuming with no positive result so far since started.
But well appreciated for all your comments and contributions, All well noted.
Seller_sLN8hJOE4khxX
you need products with more profit in them!we. buy units for 10p and sell for 4.99 on small and light, and come out with over 50% net margin after all costs fees and vat I the uk, so you need lots and lots of margin in the products! but it takes years to find products that people want to buy with good margin as amazon is world class at what they do but expensive!
