We are going to try a Buy 1 Get 1 Free promotion for the first time. Will Amazon take full fees for the 2nd free item? I am assuming they will
Would I be correct in assuming I am simply cutting my profit by 50%? Or is there other hidden charges I am over looking
You need to rethink this as I think you’re way off.
For example, looking at it simplistically:
Product cost - £10
Sale price - £20
Amazon fee - £3
Profit - £7
Buy 1 get 1 free
Product cost - £20
Sale price £20
Amazon fee - £6
Loss - £6
If your original margin is massive, then you could still be in profit but your formula of halving your profit when doing a BOGOF promo is flawed. Or maybe I just need another coffee.
Or maybe I’m missing something.
No you dont need coffee…But I do need to go back to Maths Class I think !!!
Thanks so much for this for some reason I thought Amazon would exempt you from the fee of the free item, but that is not going to happen is it
No because they still want their referral fees and if fba , their processing fees
I believe Amazon still just charges their commission fee based on the total though? I know they do on multipurchase discounts so would believe it works the same way.
So I’d believe it would be
Buy 1 get 1 free
Product cost - £20
Sale price £20
Amazon fee - £3
Loss - £3
Yes, you are probably right about that, I was thinking about the FBA fee which is charged even if item is free.
It actually looks like there is NO FBA Fee for the 2nd item.
Seller Support have stated
"We have checked all the available resources and would like to inform you that FBA fee will be charged for one unit only, not for free unit.
For more information,-
https://sellercentral.amazon.co.uk/help/hub/reference/popup/60951"
If this is NOT the case I will reply and let everyone know, thanks to all for the imput
They are correct to a degree but given you the wrong info on the type of fee -
referral fees will only be charged on the total selling price therefore buy one get one free means referral just on the one sold - not the free one
There are still fba fulfilment fees applicable though on both units
Don’t forget, they maybe stored in different warehouses etc
We have run a test of this, the way it shows up in a transaction is
Sale Net Price and Tax are cut by 50% for both items
Commission Fee is reduced as per cut in Sale Net
FBA Fee remains the same
Hope that makes sense
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