Is FBA pointless for this product, or maybe pointless alltogether
I’m not bashing, I really want this to work and have put a lot of effort into this as we all have.
I buy a small light product for 90p each, put it up for a price of £4.99.
The revenue calculator is showing FBA fee’s of a whopping £4.03p per unit with leaves me after all my efforts with a profit of 7p a unit?!
Which I will eventually have to pay tax on.
Have a made some kind of mistake here i still on a learning curve.
Thanks.
27 replies
Seller_7VbclcPFFRTnc
is it eligible for small and light ?
if so, are you checking the s&l rates instead ?
Seller_fMsCVAHNu4txH
You also need to be aware that on FBA there’s an ‘invisible’ lower price threshold.
If you go below it, then they will stop sometimes stop offering the product on ‘Next Day’ delivery options to the customers. Put the price up a little, and it goes back to normal.
The limit seems to move per product / category, so it’s not a set figure, but it’s generally been around the £5 mark (sometimes a little higher for our products).
Anything lower than that and the sales tend to drop off quite quickly because they’ll only offer a slower delivery (although still ‘free’ for Prime members).
The S&L system is similar, they won’t always offer your product with quick delivery so sales may be lower than with FBA.
So there’s a balance to be found between offering the best price, getting a decent return, and how many sales you can generate by that method.
