Trying to work out if it's worth it
Hi all. Thanks for reading. After a month of trying to get my item listed on Amazon, I eventually have! YAY! But only now can I see the fees, and I’m really wondering if it’s worth it… I have chosen FBA and I think it’s a good system, but we are a very small craft drinks company, and the fees seem unreasonably high… We make our own, so VAT is fully payable at 20% on sales. Selling at £26, The Amazon costs are over £7, meaning that the profit on a bottle is really tiny! Please someone tell me I have worked that out incorrectly… Thank you
4 replies
Seller_qZO3ZCjoBXEeL
When factoring in your profits you need to allow for the fact that FBA will incur a fairly high returns/refund rate as Amazon tend to be very generous in their customer service approach with other company’s stock and money.
If you aren’t making a healthy profit on each sale - or selling high enough volumes to offset losses then you might have to rethink your pricing or approach.
